 TITLE: COVID-19 Impact: Changes to Consumer Debt and Credit CONTENT: States With the Largest Increase in Unemployment\n------------------------------------------------\nUnemployment and loss of income can wreak havoc on credit and finances—especially for the tens of millions of people who have little or no savings they can tap to cover an emergency. The inability to cover existing debt payments can bring down credit scores, and loss of income generally means making sacrifices that can greatly impact someone's everyday life.\nIn an effort to contain the outbreak's economic impact, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act in March. Among other things, the CARES Act significantly expanded unemployment benefits and gave a one-time stimulus payment to eligible Americans. This aid was distributed to soften the impact unemployment and loss of income would have on the nation.\nThough it seems logical that debt and credit would be most impacted in states with high rates of unemployment, our analysis found no strong correlation between a state's increase in unemployment rate and the growth or decline of debt or credit.\nSource: Experian and VantageScore data from May 2019 to May 2020. Unemployment data is from the Bureau of Labor Statistics from May 2019 to May 2020. END