Posts Tagged ‘household debt’

Credit Card Delinquencies Are Rising

Posted on November 01, 2017 by Laura Lam

While it’s easy to ignore when the stock market is at record highs and unemployment is reassuringly low, household debt is on the rise.  The Center for Microeconomic Data’s (CMD) latest Quarterly Report on Household Debt and Credit reveals that total household debt rose by $114 billion (0.9%) to $12.84 trillion in the second quarter of 2017.  This increase put overall household debt $164 billion above its peak in the third quarter of 2008, and 15.1% above its trough in the second quarter of 2013 Consumer debt, in many ways, should generate more concern – during the good times.  The persistence of…

Banks Prepare for Credit Card Defaults

Posted on October 20, 2017 by Laura Lam

Credit card delinquencies increased for three consecutive months, adding to signs that consumers in the U.S. are having a tough time paying their debt.  According to recent reports, credit card data from JPMorgan, Discover Financial Services and Bank of America show that the number of delinquencies is on the rise. The reason for the uptick in the number of people who can’t pay their credit card bills is due to lenders going after consumers with less-than-stellar credit ratings. Although this practice is intended to fuel growth in a low-interest rate environment, the lower credit quality is coming back to bite…

Credit Card Delinquencies on the Rise

Posted on October 18, 2017 by Laura Lam

Credit card delinquency rose for the third straight month in September, data from JPMorgan Chase & Co. and card issuer Discover Financial Services suggested.  The data add to signs that U.S. consumers are struggling amid rising household debt, after bank results last week pointed to an increase in provisions for future losses. September delinquencies for JPMorgan rose 1.22%, while those at Discover Financial were up 1.64% from August. Those at Bank of America also rose 1.56% — the second rise in three months.  Credit quality at several banks appears to be deteriorating as lenders target consumers with worse credit ratings to…

Household Debt Hits New Record

Posted on May 23, 2017 by Laura Lam

Household debt is topping its 2008 peak prior to the housing crash. Total household debt has risen to $12.73 trillion in the first quarter, the Federal Reserve Bank of New York reported last week. However, Americans are handling their debt—mortgages, credit cards, auto loans, and other forms of borrowing – much better, the report shows.  Americans were delinquent on 4.8% of total debt in the first quarter. For comparison, at the end of 2009, 11.9% of consumers were delinquent on their debt by at least 30 days. The increase in household debt may indicate that more Americans are confident about…

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 Defaults on the Rise

Posted on March 29, 2017 by Laura Lam

A new analysis of government data by the Consumer Federation of America found that the number of Americans in default on their student loans jumped by nearly 17% last year.  As of the end of 2016, there were 4.2 million Federal Direct Loan borrowers in default, meaning they’ve not made a payment in more than 270 days. That’s up from 3.6 million at the end of 2015. “Despite all improvements in the economy, student loan borrowers are still struggling,” said Rohit Chopra, senior fellow at the Consumer Federation of America (CFA).  As of the end of 2016, 42.4 million Americans…

Will Household Debt Hit New Record in 2017?

Posted on February 21, 2017 by Laura Lam

Americans’ debt balances rose “substantially” in the final quarter of 2016, according to the Federal Reserve Bank of New York.   Household debt totaled $12.58 trillion as of December 31, 2016, according to the New York Fed’s latest quarterly report on credit.  Total debt increased by 1.8%, or $226 billion, in Q4. That lifted household debt just 0.8% below the peak reached in the third quarter of 2008 as the US economy was mired in recession. According to the report, Americans borrowed the most money since the recession to pay for new houses or to refinance their mortgages. Mortgage originations in the fourth quarter totaled $617…

States With the Most Household Debt

Posted on March 11, 2016 by Laura Lam

Total U.S. household debt continued to climb in the fourth quarter of 2015. According to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit, households added $51 billion of debt in the final three months of the year, pushing total indebtedness to $12.12 trillion at the end of the quarter. Mortgage debt remains the leading contributor by far, but student loan debt also continued its ascent. How much does the average household owe? Nationwide, the per-capita debt is about $46,170, the Federal Reserve Bank of New York said in its most recent report. That can…

Debt Collectors to Chase Down Unpaid Lunch Money

Posted on November 02, 2015 by Saldutti

In Minnesota, Anoka-Hennepin School District officials plan to hire a collection agency to pursue approximately $160,000 in unpaid breakfast and lunch money.  Families owing more than $100 in school meal debts and who don’t respond to the district’s internal collection efforts – or simply refuse to pay – should expect to hear from a third-party collection firm by early next year. Anoka-Hennepin, Minnesota’s largest school district, located northwest of Minneapolis and St. Paul, has yet to contract with a collection agency and plans to first offer families a payment plan option. Nationally, schools are experiencing financial problems because of unpaid school…

Credit Cards & Debt: 25 Cold-Hard Facts

Posted on July 06, 2010 by Saldutti

Credit cards can be your best friend or worst enemy. They are one of your life’s major financial assets and you need to know how to make it work for you, not against you.  Here are some interesting facts about these small pieces of plastic (courtesy of CreditCards.com)  Average credit card debt per household with credit card debt: $15,788 Total credit cards in circulation in U.S: 576.4 million, as of yearend 2009 Total debit cards in circulation in U.S: 507 million, as of yearend 2009 Average number of credit cards held by cardholders: 3.5, as of yearend 2008 Average APR…