Student and auto debt fuel credit bubble 2.0: Student loans carry the highest delinquency rate of all debt classes. Student and auto debt up $1.15 trillion in last decade.
A large portion of our recent recovery has come from debt fueled consumption. The bailouts have been favorable to financial institutions but access to debt for American families has been in segments that are counterproductive to wealth accumulation. There is no benefit in having access to cheap loans for purchasing a car, an “asset†that […]
Driving our way into financial poverty with six-year car loans: Once a minority, six-year or longer auto loans now make up one third of all new loans.
Taking on debt for buying a car is a risky proposition. Taking on subprime debt for buying a car is simply a bad financial decision. The subprime loan market is booming for auto loans. Cars can last longer, require basic maintenance, and typically run better than older models. That brings up challenges for the auto […]
The revival of the American debt machine: auto loans, student debt, and credit card debt surge in latest report. Total non-housing debt now at $3.15 trillion.
Last week while going through mountains of credit cards offers, it felt as if we were in 2005 and 2006. Even last year, the cold calls started and it seemed like the debt machine was back and alive. This is helpful news for consumers given that half of Americans are living paycheck to paycheck. Now […]