Posts Tagged ‘education’

Consumer Borrowing Slows in June

Posted on August 10, 2017 by Laura Lam

Consumer borrowing slowed a bit in June from the torrid growth in the prior month, but continued at a solid pace, according to government data released Monday.  Total consumer credit increased $12.4 billion in June to a record seasonally adjusted $3.86 trillion, posting an annual growth rate of 3.9%, according to the Federal Reserve.  This is down from a revised $18.3 billion gain in May, which was the strongest rate in six months. Consumer borrowing slowed a bit in the second quarter as a whole, continuing a trend in place since last fall. Credit rose at a 4.5% annual rate…

73% of Americans Have Financial Regrets

Posted on June 06, 2017 by Laura Lam

Nearly 3-in-4 U.S. adults have financial regrets, according to a new Bankrate.com report. The most common is not saving for retirement early enough, followed by not saving enough for emergency expenses and taking on too much credit card debt. Taking on too much student loan debt is fourth, however, it tops the list among older millennials (27-36 year-olds). Fifth overall is not saving enough for your children’s education and sixth is buying more house than you could afford. Baby Boomers are the most likely to regret not saving for retirement earlier; remorse over this issue grows steadily from age 18-62. It’s…

Millennials’ Debt Load Could Weigh Down Economy

Posted on May 09, 2017 by Laura Lam

Millennials — 21 to 34-year-olds — hold an estimated $1.1 trillion of the country’s $3.6 trillion in consumer debt, according to UBS, as rising student and auto loans outweigh a drop in mortgages.  All that rising debt is coming with rising default risks. A UBS evidence lab survey found that 52% of people worried about defaulting on any loan over the next 12 months were in the 21 to 34 age group. That’s not good news considering those same individuals are meant to be the largest source of spending on big-ticket purchase items like houses and cars over the next year.  There is already…

Student Loan Debt May Have Adverse Long-Term Impact

Posted on April 17, 2017 by Laura Lam

Rising student loan debt in the United States could ultimately hurt overall home ownership and consumer spending and erode colleges’ and universities’ ability to elevate lower-income students.  New York Fed President William Dudley, an influential monetary policymaker who was citing research from his institution, pointed to rising costs of higher education and student debt burdens as culprits in the troubling trend. Overall U.S. household debt is expected to surpass its pre-recession high later this year. Proportionally, Americans have shifted away from housing-related debt and toward auto and student loan debt, with aggregate student loan balances $1.3 trillion at the end of last year, up…

Student Loan Debt: A $1.3 Trillion Crisis

Posted on March 21, 2017 by Laura Lam

According to the New York Federal Reserve, U.S. student loan debt has soared to $1.3 trillion becoming the second highest consumer debt category, more than both credit cards and auto loans.  Washington College President and former Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair said the student loan debt crisis could spark next financial crisis, since it is a “tremendous drag” on the U.S. economy. During the financial crisis of 2008–09, excessive mortgage debt collapsed consumer spending as more families opted to pay off debt. Bair said the same dynamic could be seen if the student debt bubble bursts.  “With…

Most Americans Ruin Their Credit by Age 30

Posted on February 17, 2017 by Laura Lam

A whopping 68% of Americans make at least one major financial mistake, or “credit fumble,” before turning 30, leading to a negative mark on their credit report, according to a Credit Karma survey.  These mistakes include overspending on credit cards, missing payments, defaulting on a loan or having an account sent into collections, the survey found. The greater the offense, the longer it will reflect on your credit report, said Bethy Hardeman, chief consumer advocate at Credit Karma. In fact, it usually takes consumers 7 to 10 years to erase negative marks from their credit, thanks to the Fair Credit…

Education Reduces Foreclosures by 42%

Posted on September 13, 2016 by Laura Lam

Research by Vanderbilt University’s Peabody College shows that among participants in a down-payment assistance program offered by the Tennessee Housing Development Authority (THDA), the odds of foreclosure were 42% lower for those who completed a homebuyer education (HBE) class compared to those who did not.  The course covers the advantages and disadvantages of home ownership, the difference between home equity loans and home equity lines of credit, and the importance of creating and sticking to a family budget. The Vanderbilt study’s author, doctoral student Scott Brown, explored an opportunity to compare home-buyers in 2002 who were identical in every way…

Parents Come Up Short on College Savings

Posted on September 07, 2016 by Laura Lam

College tuition continues to rise, putting increasing pressure on parents hoping to give their children a hand in paying for school. And more parents than ever are stepping up.  According to Fidelity’s recently released 10-Year College Progress Report, 72% of parents reported saving for college this year —a record high — compared to 58% in 2007. The number of parents taking advantage of a dedicated college-savings plan, such as a 529 plan, is also on the rise, up 62% since 2007.  However, it’s still not enough. “While families have adopted more active and effective savings habits over the past decade, this year’s…

What to Buy in August

Posted on August 12, 2016 by Laura Lam

August is all about back-to-school deals. Even frugal shoppers without school-age kids can find big discounts this month on items such as electronics and office supplies. This is also the beginning of the end of summer, so August bargains include seasonal products. Cheapism shows us a dozen things consumers will find at cut-rate prices this month. Tax-Free Items – Some states offer tax-free shopping on select days in August. In most cases these sales tax holidays apply only to select goods, such as clothing and school supplies. Check your state government’s website for dates and restrictions. This could be a good…