Mayra Rodriguez Valladares with MRV Associates said many people have been dipping into their savings.
“So they need more cash to pay off credit cards. They need more cash to pay that gasoline, you know, any of their loans,” Valladares said. “And so what that means is that you’re going to also start, quite likely, seeing reductions in deposits at banks.”
As a result, Valladares said, lenders have been taking steps to make sure they’re prepared for more delinquent loans.