American's credit card debt has just hit a disturbing record of $1.02 Trillion according to the Federal Reserve. You may be surprised how much we owe.
Most of us owe money on some combination of mortgages, student loans, cars, and credit cards. Medical debts and personal loans are pretty common, too.
While being in debt may be considered “normal”, you may be wondering how your debt compares to your peers'. And now, you can find out thanks to the 2017 State of Credit report from Experian. Here are a few key findings from that report, along with some tips on what you can do if your debts are higher than you'd like.
How high is the ...
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Social Security Benefits Sooner Rather Than Later – Not a Bad Idea
Though your Social Security benefits are calculated based on what you earned during your career, the age at which you first file for them can impact your ultimate payout. If you claim benefits at full retirement age (FRA), which, for today's workers, is 66, 67, or somewhere in between, you'll get the exact amount you're entitled to based on your earnings history. However, if you hold off past FRA, you'll boost your payments by 8% a year, up until age 70.
Now, on the one hand, that's a pretty good deal, because you're basically getting a risk-free 8% return on your money by waiting until age 70. On the other hand, filing for Social Security ...
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Senate Passes Bill Providing for Free Credit Freezes – Possible Expansion of VantageScore
The Senate has passed a bill that would roll back some banking regulations. Indirectly, the bill addresses Equifax’s historic data breach in which Social Security numbers and other personal data of 150 million people were exposed — a number that comprises well over half the U.S.’s adult population.
Though Sens. Mark Warner (D-Virg.) and Elizabeth Warren (D-Mass.) had put forth a bill in January that would hold credit reporting agencies responsible for breaches, it did not progress and Congress had failed to issue a legislative response to the Equifax breach.
In a move meant to benefit consumers, the new Senate bill, which was introduced ...
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Is the Student Loan Crisis A Civil Rights Issue?
Kudos to Wade Henderson, Founding Board Member, Center for Responsible Lending, for this insightful view of the student loan crisis...as published in the Los Angeles Sentinel.
"From attacks on voting rights to police killings of unarmed civilians and growing inequities in earnings and wealth, the civil rights gains of the past six decades are facing threat after threat. But one front in the fight for full equality—meaningful access to higher education—is particularly urgent. With 65 percent of jobs soon requiring more than a high school diploma, the need is greater than ever, especially for African Americans and other communities of ...
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Credit Card Debt Increases Most Since Prior To Great Recession
According to WalletHub, Americans added $92.2 billion in credit card debt in 2017, the most since 2007 - prior to the Great Recession. When you include all outstanding balances, the Federal Reserve estimates that Americans owe more than $1 trillion in credit card debt.
So what’s the deal? In the fourth quarter of 2017, Americans added $67.6 billion in credit card debt, which was the highest quarterly accumulation in 30 years. Looking back over the past couple of years, you can also see a speedy incline in debt, with debt climbing from $43 billion in 2015 to $87 billion 2016. This growing burden could be attributed to historically low ...
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Fed Chairman Questions Discharge of Student Loans in Bankruptcy
Market Watch reported today that the new chairman of the Federal Reserve questioned why struggling borrowers can’t discharge their student loans in bankruptcy.
“Alone among all kinds of debt, we don’t allow student loan debt to be discharged in bankruptcy,” Jerome Powell told members of the Senate Banking Committee Thursday. “I’d be at a loss to explain why that should be the case.”
Powell’s comments came in response to a question from Senator Brian Schatz, a Democrat from Hawaii, about whether high levels of student debt create a drag on the economy. More than 40 million Americans hold nearly $1.4 trillion in outstanding student ...
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Massachusetts Opens Door For Possible State Regulation of Student Loan Servicers
An action commenced in Massachusetts could have implications for the U.S. Department of Education’s efforts to shield student loan contractors from state oversight. A Superior Court Judge on Thursday refused to dismiss a lawsuit filed in August by Massachusetts Attorney General Maura Healey against Pennsylvania Higher Education Assistance Agency, a company that manages student loans and grants on behalf of the government.
Healey has accused FedLoan Servicing, of haphazardly handling two federal programs that encourage college graduates to enter fields serving the public good with the promise of loan forgiveness or financial aid.
The ...
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Supreme Court To Consider Challenge to Merchant Vendor Fees
Every time a consumer swipes his or her credit card, the credit card company collects a merchant vendor fee. Do most consumers know this? Probably not. This is because American Express policies prohibit retailers from educating consumers about these fees or giving consumers benefits for using lower-cost cards. Although retailers are fighting for the right to disclose these fees, credit card companies are determined to keep consumers in the dark.
Retailers are supporting an action that will be argued before the U.S. Supreme Court on Monday. The case, Ohio et al. v. American Express, began when the Federal Government and 11 states sued ...
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Job Polarization Forcing More Baby Boomers Out of Job Market
Men in their prime working years have left the labor force at an astonishing rate and they may never return if the state of the U.S. job market holds, according to a new report from the Federal Reserve Bank of Kansas City. This does not bode well for those approaching retirement and still carrying debt obligations. This may cause bankruptcy filings to spike in the 55-64 age group.
A decline in demand for middle-skilled work — a phenomenon dubbed “job polarization,” because more positions are concentrated at the higher and lower ends — has played a role in keeping prime-age men out of the job market an economist at the Kansas City Fed, ...
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Education Department Reviewing Discharge of Student Loans in Bankruptcy? – Not So Fast
After a 20 year hiatus, Student loan borrowers may finally have their day in Bankruptcy Court.
The Education Department said this week it will review when borrowers can discharge student loans - an indication it could become easier to expunge those loans in Chapter 7 or Chapter 13 bankruptcy.
The Department said it is seeking public comment on how to evaluate undue hardship claims asserted by student loan borrowers to determine whether there is any need to modify how those claims in bankruptcy are evaluated.
As of now, it is almost impossible to discharge student loans in bankruptcy. The rule of thumb in New York has always been the ...
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