A Peak Into 2022 Student Loan Data is Not Promising Given Pandemic Relief Tweaks

Table of Contents Fact 1: More borrowers are facing growing balances Fact 2: Credit scores for student loan borrowers increased dramatically during the pandemic Fact 3: Student loan balances and delinquency rates vary widely across states with worse outcomes in the South Pandemic Relief Drastically Reduced Borrower Delinquency Rates By Daniel Mangrum, Joelle Scally, and … Read more

Just the Facts: Consumer Bankruptcy Trends, 2005-2021

Background The bankruptcy process can provide a fresh financial start for consumers who cannot pay their debts, either because of insolvency or insufficient income to meet creditor demands. Personal bankruptcy generally works in one of two ways: liquidating assets to pay one’s debts under Chapter 7 of the U.S. Bankruptcy Code or establishing a repayment plan under Chapter 13 … Read more

People Less Worried About Inflation

The Federal Reserve Bank of New York’s Center for Microeconomic Data today released the July 2022 Survey of Consumer Expectations, which shows substantial declines in short-, medium- and longer-term inflation expectations. Expectations about year-ahead price increases for gas and food fell sharply. Home price growth expectations and year-ahead spending growth expectations continued to pull back from … Read more

Wave Goodbye to the Middle Class

In recent years, the Brooking Institution published a series of papers as part of its Future of the Middle Class Initiative. In a 2020 paper, Brookings defined the Middle Class as the middle 60 percent of the household income distribution–“not poor, but not prosperous either.” How much income must a family have to be considered middle … Read more

Credit Card or Debit Card: The Great Debate. It’s Not Even Close.

Table of Contents The Major Differences Between Debit and Credit Cards Card Incentives Fees/Costs Spending Limit Credit Rating Billing Errors Merchant Disputes Theft Protection A Few Final Suggestions Have trouble getting approved for a credit card? Do you have bad credit? Maybe a debit card is an answer. But, not to spoil the surprise, it’s … Read more

Majority of People You Know Are Living Paycheck-to-Paycheck

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New findings from LendingClub paint a picture of people sliding back into just getting by financially. 61% or 203 Million Americans are Living Paycheck To Paycheck, Up from 55% a Year Ago. At the same time, the average savings amount dropped to $10,757 in June 2022. People are wandering more towards the financial edge despite … Read more

Total Household Debt Surpasses $16 trillion in Q2 2022; Mortgage, Auto Loan, and Credit Card Balances Increase

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The Federal Reserve Bank of New York’s Center for Microeconomic Data today issued its Quarterly Report on Household Debt and Credit. The Report shows an increase in total household debt in the second quarter of 2022, increasing by $312 billion (2%) to $16.15 trillion. Balances now stand $2 trillion higher than at the end of 2019, before the … Read more

Is Americor a Good and Reputable Company?

Question: Dear Steve, I’m recently divorced and have gotten myself into a debt hole. As a result, I can not manage my monthly payments. I’m considering a debt relief contract with Americor. Is this a good reputable company, or is there a better option for getting out of debt? Robin Answer: Dear Robin, It is … Read more

Personal Loan Bait and Switch Bastards – Podcast

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For many years I’ve written about the tactic some debt relief companies use to trick consumers into signing up for some form of debt relief. Consumers receive offers in the mail for a personal or debt consolidation loan and are told they don’t qualify, but “we have a better program.” Damon Day and I discuss … Read more

Historically Low Delinquency Rates Coming to an End

By Andrew Haughwout, Donghoon Lee, Daniel Mangrum, Joelle Scally, and Wilbert van der Klaauw Total household debt increased by $312 billion during the second quarter of 2022, and balances are now more than $2 trillion higher than they were in the fourth quarter of 2019, just before the COVID-19 pandemic recession, according to the Quarterly Report … Read more