The number of low-income or sub-prime consumers who are likely to default on their debt rose significantly during the second quarter according to UBS’s quarterly Evidence Lab credit survey.
The Housing Intentions survey questioned a broad selection of US consumers at the end of Q2 and found that overall, the number of consumers in the lower wage bracket (<$40,000) who believe they are now at risk of defaulting on their debt within the next year has risen by 44%.
Sub-Prime Consumers' Risk Of Default Soars
Results from the survey show that consumers falling into this low-income cohort cited a rise in their default probability from 9% in the first quarter to 13% in the second quarter. The most commonly cited reason why...
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