Houston Defaults Mount as Bayou City Struggles
Rising Personal Loan Delinquency in Houston Houston faces rising personal loan delinquencies, raising alarms about economic stability. The city's delinquency rates, between 4–5%, outpace other Texan cities. Subprime lenders and payday loans are significant factors driving these higher rates. This situation underscores troubling financial trends in the region. A recent report highlighted that personal loan demand saw a significant decline of 15% in 2023, totaling $9.2 billion, further illustrating economic challenges. The increasing costs of living and economic pressures are pushing residents toward borrowing. This surge in borrowing heightens default risks. In Houston, approximately half of personal loan borrowers are using loans for debt consolidation or daily expenses. This reliance exacerbates financial stress. With an average interest rate of 12.3% APR for two-year loans, repayment is challenging for many. This delinquency rise may worsen borrowing conditions and impact local ...