As the COVID-19 pandemic affects the global economy, many consumers are struggling with their finances. According to a TransUnion survey, six in 10 (61%) consumers indicated their household income was impacted. These consumers expect that they will not be able to pay their bills or loans in 6 weeks due to financial hardship, and expect to be short by an average of $1,000.
Stress can lead to a shift in consumer behaviors, driving increases in delinquency. While consumers’ financial situations change quickly, lenders should work to proactively identify struggling consumers in order to best aid consumers and prevent accounts, where possible, from progressing into serious delinquency.
Download our lender quick guide to learn ways to stabilize portfolios and develop an account management strategy to weather the immediate crisis.