Equifax Sales Agent
Understanding consumer stressors is the key to protecting + growing your portfolio.
An increasing number of consumers are facing credit and financial stressors. What economic factors are causing this in your portfolio?
For the past couple of years, consumer spending has been consistently healthy, but now retail reports are illustrating a shift in consumer spending, focusing more on essentials than on luxury items. Economic data shows that savings built up during the pandemic have largely eroded, and personal expenditures have been outpacing disposable income for the past year and a half.
Then, we see that credit trend data shows an increase in revolving credit usage and payment delinquencies. On top of that, you see inflation that’s created a need to tighten belts and, for an increasingly large number of consumers, has necessitated using credit to cover basic monthly expenses after savings.
Get to know the nuance.
Certain economic factors, such as the resumption of student loan payments and noteworthy labor strikes, affect those in your portfolio in nuanced ways. Although some consumers are doing well, others face significant challenges. High-income individuals with access to credit and stable mortgages fare better, while subprime consumers experience rising delinquencies.
That’s where we come in. Leveraging the most up-to-date credit scores and tools like the Equifax portfolio review can help you better understand your different consumer segments and readjust your strategies to fit their unique challenges and opportunities.