More than 106 million credit accounts have skipped payments since the pandemic began

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TOP LINE

Americans have skipped payments for more than 106 million various loans, mortgages, and other types of debt since the month of March when the coronavirus hit the country, according to a. highlights the economic impact of the pandemic Wall Street Journal first reported, cited data from TransUnion.

IMPORTANT FACTS

The number of accounts opened since Jan. Wall Street Journal reported.

The numbers at the end of May are three times what they were at the end of April, suggesting a steep rise in economic hardship, according to the report.

The biggest increase was in student loans, with 79 million accounts requesting deferment or other forms of relief, up from 18 million in the previous month.

7.3 million auto loan accounts along with 1.3 million personal loans have also requested similar relief.

Key background

The report of a steep spike in missed loan payments comes after the pandemic lockdown forced 45 million Americans must apply for unemployment benefits. The government has ordered companies in some cases to allow borrowers to defer payments, and the stimulus package signed in March allowed most borrowers to stop making monthly federal student loan payments through September 30. The stimulus package also allowed homeowners affected by the pandemic to apply for a 12-month hiatus in mortgage payments. Additionally, many credit card, auto loan, and personal loan lenders continue to allow consumers to skip or pause payments. The number of people requesting deferred payments could continue to rise, as members of the Trump administration have done signals That the additional US $ 600 per week unemployment benefit, which expires on July 31, cannot be extended any further. In April, a opinion poll The Experian credit bureau estimates that nearly 77% of borrowers have requested or planned to ease loan repayment due to the economic downturn.

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