Economy Finance News

"Struggling Americans: New York Fed Reports Bill Payment Challenges"

A report from the New York Fed reveals that low-income borrowers are struggling to make payments on car loans and credit cards, with delinquencies surpassing prepandemic levels. Many missed out on the opportunity to refinance their mortgages during the pandemic, leading to higher monthly payments as current mortgage rates average 6.6%. Low-income areas also have lower levels of homeownership and higher rent burden, with 57% of households spending more than 30% of their income on rent.