BFH - Subprime consumer borrower delinquency is rising toward prepandemic levels

Consumers with low credit scores are falling behind on paying off credit cards, personal and car loans, which may indicate that consumer delinquency patterns are nearing prepandemic levels. Soon after COVID-19 hit the U.S., Congress and the federal government implemented a massive relief effort to keep the economy and U.S. consumers afloat when millions of jobs disappeared and GDP cratered. The economy came roaring back, most jobs have returned, and U.S. household balance sheets have improved. With a good amount of cash available, U.S. consumers not only reduced their borrowing activity, they were paying off more of their debt than usual. Now that the majority of pandemic relief programs have expired, consumers may be returning to more typical spending and payment patterns. In addition, the surge in inflation disproportionately affects lower-income consumers. The percentage of subprime credit cards and personal loans that are at least 60 days past due is

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Subprime consumer borrower delinquency is rising toward prepandemic levels