The Impact of COVID-19 on Debt and Credit Access in Low-Income Communities
Many low-income families are still bearing the brunt of the economic impact of the COVID-19 global pandemic. This qualitative study was conducted to understand the financial impact of the pandemic on low-income households, with a focus on how families used credit and debt to manage financial challenges during the pandemic. Study findings show that many low-income households of color are using credit products such as credit cards and dangerous payday loans to navigate financial hardships. This research also makes clear that struggling families are barely managing and remain stuck in a cycle of financial insecurity.