A One-Issue Economy
Unless Congress acts quickly, the $600 unemployment benefit that's supported low-income U.S. households will expire. Consequently, some Main Street Americans are worried they'll have trouble paying their bills.
Ron Oertell, CFO of consumer lending firm Lending, has some calming words for impacted Americans.
"While it’s natural to assume that any decrease in government support will cause increased delinquent payments and defaults, that may not be the case," Oertell says.
“That's because a single outside event, Covid-19, is the cause of high unemployment."
Oertell says the resulting downturn will subside once a vaccine or other solution is available.
"It’s likely that lenders will continue to have robust deferment programs and work with their borrowers during this relatively shorter-term period," he notes.