Lending in lower-income markets has radically transformed in recent decades, highlighted by a dramatic increase in the supply of credit. However, little is known about lending variations across different lower-income markets, nor the underlying forces affecting borrowing patterns. Using Federal Reserve data and a unique database of over 14 million anonymous credit reports supplied by TransUnion, this paper examines the nation’s lower-income credit and lending markets and finds: Over 55 percent of lower-income households held debt in 2004, a 10 percent increase since 1989. Total debt held by these households increased by 308 percent during this period, now adding up to over $481 billion. Most of this debt is for mortgages and home-related installment trades. Over 32 percent of lower-income borrowers struggle to pay bills on time; about 27 percent now spend more than 40 percent of their income servicing debt.