Finally, Tarkan said, there could be a simpler reason: Maybe more Americans just can’t afford their monthly payments.
And there are some warnings signs that a growing share of consumers are struggling to pay their bills. A higher portion of previously-current consumer debt—from credit cards to mortgages to car and student loans—became delinquent during the quarter that ended June 30 than last year, according to data on loan balances compiled by the Federal Reserve Bank of New York. “Despite a strengthening economy, there’s no question that millions of student loan borrowers continue to struggle,” said Rohit Chopra, a student loan expert at the Consumer Federation of America.
This article was provided by Bloomberg News.