SFA Research Corner: End of Unemployment Benefits Could Lead to Short-Term Up-Tick in Delinquencies and Credit Card Debt

Close to 9 million Americans still impacted by pandemic-related unemployment saw the end of benefits on Labor Day. Federal Reserve research suggests that this support, while it was available, was used to pay down debt and stay current on bills. Without this support, we may see a rise in delinquencies, potentially impacting ABS performance, as hurdles to employment remain. Consumers may resort to credit cards for short-term liquidity.

End-of-Unemployment-Benefits-Could-Lead-to-Short-Term-Up-Tick-in-Delinquencies-and-Credit-Card-Debt.pdf