Americans Are Prioritizing Phone Payments Over Car Loans
- Handheld loans move up the ladder of priority for payment
- That’s creating a new opportunity in asset-backed securities
Photographer: SeongJoon Cho/Bloomberg
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U.S. consumers are more devoted to their mobile phones than their automobiles.
The sea change has taken place over the last few years as mobile devices become an integral tool not just for communication with loved ones or employers, but also everything from banking to dating to watching TV and listening to music. As cars grow relatively less important, borrowers struggling to pay back their loans on time are increasingly prioritizing payments on the latest iPhone instead of making sure they hold on to their pickup or coupe.