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  1. #1

    Household Debt on the Rise

    A new Federal Reserve report says that household debt saw its largest increase in a decade. And is heading back towards its bubble peak.

    From the UPI Article:

    The report indicates mortgages still make up the bulk of household debt, but student loans are now 10 percent of the total, auto loans are 9 percent of the total and credit card debt is 6 percent. Dollar amounts rose in each category in 2016ís fourth quarter. The rising debt indicates that banks are extending more credit to households.



    A major difference between the 2008 and 2016 debt levels, the report said, is that fewer delinquencies were reported at the end of 2016. In last yearís fourth quarter, 4.8 percent of debts were regarded as delinquent or late in payment, compared to 8.5 percent of total household debt in 2008ís third quarter. There were also 200,000 fewer consumer bankruptcies reported in 2016ís fourth quarter, a four percent decline, compared to the fourth quarter of 2015.
    Definitely file this under the things that make you go hmmmm....
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  2. Household Debt on the Rise
  3. #2
    Registered User Enthusiast
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    89
    Let's hope things go better this time.

  4. #3
    Registered User Enthusiast
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    68
    This time, corporate leverage is up, Federal government debt now exceeds 100% of GDP, and states and cities and more burdened than ever by underunfded pension plans. I'm sure things will go swimmingly.

  5. #4
    Registered User Junior Member
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    26
    College debt is the big problem this time. Bugger than ever. And you can't get rid of it.

    At least people were able to walk away from their mortgages.

  6. #5
    Registered User Junior Member
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    31
    Yes, Student debt rose significantly. And much faster than wages.

    Auto loans also are looming. They are bigger than ever. With longer terms than ever. Those seem pretty easy to walk away from.

    Credit card debt too is on the rise.

    I think the big one -- mortgages -- don't loom as large because many people have decided that cannot get back into homeownership. And who would blame them.

    So hard to tell if we are better off or not than back in 2007-2009.

  7. #6
    I know it does not fit the narrative, but credit card debt was down for the first time in a year. And down big. Yeah consumers!
    Current Fico Scores: 710 TU, 732 EQ
    My Goal for 2016: 750+

  8. #7
    Quote Originally Posted by Cherrine View Post
    I know it does not fit the narrative, but credit card debt was down for the first time in a year. And down big. Yeah consumers!
    That is awesome news!
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  9. #8
    Registered User Enthusiast
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    51
    Is this just evidence of people using tax refunds to pay down credit card debt? If so, it will be temporary.

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