According to a recent report from the Government Accountability Office (GAO), half of borrowers were current on their loan payments in January. This finding comes at a time when many Americans are facing financial hardship due to the ongoing COVID-19 pandemic.
The report, which was based on data from the Federal Reserve Bank of New York, found that 50 percent of borrowers were current on their loan payments in January. This is a slight improvement from November, when only 48 percent of borrowers were current on their payments.
The GAO report also highlighted some concerning trends in loan delinquencies. For example, the report found that delinquencies on mortgages and auto loans increased in January, while delinquencies on credit card and student loans remained relatively stable.
These findings suggest that many Americans are still struggling to make ends meet, despite some signs of improvement in the economy. This is particularly troubling given the fact that millions of Americans are still out of work due to the pandemic.
The GAO report also noted that government relief programs, such as stimulus checks and expanded unemployment benefits, have helped to mitigate the impact of the pandemic on borrowers. However, these programs are set to expire in the coming months, which could lead to an increase in loan delinquencies.
In order to prevent a wave of loan defaults, the GAO recommended that Congress take action to extend relief programs and provide additional assistance to struggling borrowers. This could include extending unemployment benefits, providing targeted relief to industries most affected by the pandemic, and expanding access to affordable housing options.
Overall, the GAO’s report paints a picture of a fragile economy in which many borrowers are struggling to keep up with their loan payments. As the pandemic continues to unfold, it will be crucial for policymakers to take action to support those who are most vulnerable and prevent a further deterioration in loan delinquencies.
0
0
