Posted 1/18/2024, 5:44:00 PM
Low-Income Borrowers Struggle as Delinquencies Rise on Credit Cards, Car Loans and Mortgages
- Low-income borrowers missing more payments on car loans and credit cards, pushing delinquencies up
- Median car loan balance for low-income borrowers was $24,700 in Q3 2022, up from $18,500 end of 2019
- Many low-income homeowners missed out on refinancing during pandemic to lower rates
- Only 24% of mortgages in low-income areas were refinanced in 2020-2021, versus 42% in high-income areas
- 57% of households in low-income areas are rent-burdened, spending over 30% of income on rent