Analysts are warning of a surge in defaults in consumer debt in the US if Congress fails to extend the programme of increased unemployment benefits that was put in place to ease the effects of the coronavirus outbreak.
Lawmakers are locked in negotiations over further stimulus to replace the pandemic unemployment assistance payments, worth $600 per week for each claimant, which are due to expire on July 25. Proposals are also being discussed to repeat the tax rebates that sent up to $1,200 directly to people earning up to $99,000.
While the deadlock endures, analysts are growing nervous that a big rise in consumer defaults could be just around the corner. Household debt in the US, excluding mortgages, stood at a record $4.2tn at the end…
Read the full article at: https://www.ft.com/content/37463309-3a4b-43cf-bb85-893ed707f412
