U.S. borrowers with lower incomes are struggling to make loan payments, leading banks to become more cautious when granting credit cards and auto loans.

An increasing proportion of Americans have seen their savings shrink as rising costs put pressure on their budgets and interest rates remain high.

People making less than $45,000 annually saw a decline in their household finances

Banks are increasingly cautious due to mounting pressures, adopting a cautious outlook and optimizing their balance sheets by using pricing strategies.

A Federal Reserve Bank of Dallas study found that banks increased borrowing rates in March, resulting in a fall in loan volumes and further tightening of credit standards.

Many banks anticipated tightening lending requirements for credit cards and auto loans.

The amount of debt held by American households has increased to an all-time high, and last year saw the first instance of credit card balances exceeding $1 trillion due to consumer borrowing.

Credit card and auto delinquency rates seem to be peaking, and the amount of debt held by American households has increased to an all-time high.

Consumers with low incomes face more financial strain, and the proportion of American borrowers with the best credit scores is declining.