There are actually a lot more than 100 million skipped payments on student loans, automotive loans along with other types of debt, based on a report through the Wall Street Journal.
At 106 million total after May, the number of skipped payments, deferments or other types of relief has become three times what it was in April. Student education loans represented the largest rise in non-payments, with 79 million accounts in some type of relief status, an enormous upswing in the 18 million only a month before.
Elsewhere, WSJ reported, 7.3 million auto loans are in some kind of deferments, while personal loans hit 1.3 million in arrears. Each of those figures represent a doubling from what they had been the month previously.
The numbers illustrate the continuing effect the economic turmoil that the pandemic is having on individuals. The mass layoffs and furloughs since mid-March have likely left many Americans with no resources required to pay their debts, with stimulus checks for many years used up and unemployment benefits in many high-cost areas not enough to cover all the needed costs.
The government's educational funding packages have tried to curb those problems, with the CARES Act instructing a lot of companies to allow borrowers defer their loans and stop paying with the end of September, and homeowners allowed with the stimulus package to pause payments for up to Twelve months.
But this may not be a solution forever, WSJ reported, because it is becoming harder for lenders to determine an applicants' risk due to the mass amounts of deferments, making it unclear who'll eventually become capable of paying back loans when the economy is within a better state. There isn't any one way of reporting people in have to credit reporting firms, and corporations aren't said to be tying credit ratings to pandemic-related difficulties.
Debt has been surging lately, with recent statistics having it at $55.9 trillion, an 11.7 spike. Meanwhile, household values for people dipped 5.6 percent, totaling $111 trillion.
