Private Credit Firms Fund Pre-Issued Consumer Loans as US Household Debt Hits $18.8 Trillion
Updated
Updated · Bloomberg · Jul 1
Private Credit Firms Fund Pre-Issued Consumer Loans as US Household Debt Hits $18.8 Trillion
1 articles · Updated · Bloomberg · Jul 1
Summary
Multibillion-dollar agreements are letting private credit firms buy consumer loans before they are even originated, extending fresh funding into the US buy-now-pay-later market.
Roughly $18.8 trillion in US consumer and household debt underscores the demand behind those deals, with elevated interest rates and higher living costs pushing cash-strapped families to borrow for everyday purchases.
That financing shift shows private capital moving deeper into consumer lending, supplying credit outside public markets as traditional household finances remain under pressure.