DIRS.INFO The most relevant business & tech news

In fact, some borrowers are still paying off debt from last year's purchases. To that point, 28% of shoppers who used credit cards have not paid off the presents they bought for their loved ones last year, according to a holiday spending report by NerdWallet. However, this is a slight improvement from 2023, when 31% of credit card users had still not paid off their balances from the year before. Although overall credit card balances were 6.9% higher at the end of the third quarter compared to a year earlier, that's a significant improvement from the 15% year-over-year jump from Q3 2022 to Q3 2023, TransUnion found. Recent wage gains have also played a role, according to Paul Siegfried, TransUnion's senior vice president and credit card business leader.

Persons: TransUnion, Michele Raneri, Paul Siegfried, TransUnion's Organizations: Finance, TransUnion

☆ The Federal Reserve cuts interest rates by a quarter point after election. Here's what that means for you
▼ + stars: | 2024-11-07 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

Mortgage ratesHousing affordability has been a major issue due in part to a sharp rise in mortgage rates since the pandemic. Trump has said he'll bring down mortgage rates — even though 15- and 30-year mortgage rates are fixed, and tied to Treasury yields and the economy. Mortgage rates are unlikely to fall significantly, given the current climate, explained Jacob Channel, senior economist at LendingTree. Federal student loan rates are fixed, so most borrowers won't be immediately affected. But refinancing a federal loan into a private student loan will forgo the safety nets that come with federal loans, such as deferments, forbearances, income-driven repayment and loan forgiveness and discharge options.

Persons: Joshua Roberts, Matt Schulz, Trump, Jessica Caldwell, Edmunds, Trump's, Caldwell, Michele Raneri, Jacob Channel, Mark Kantrowitz Organizations: Federal, Reuters, Auto, Fed, Treasury, TransUnion, Mortgage, Association . Locations: Washington ,, Edmunds, U.S

☆ High Credit Card Interest Rates Are Loading Americans With Debt
▼ + stars: | 2024-10-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +11 min

The average credit-card interest rate is now just over 21%, up from about 15% a decade ago. Additionally, as credit-card companies continue to charge high interest rates, more cardholders in debt become delinquent — and that could push the US economy closer to recession. Advertisement'The highest credit-card rates we've ever seen'Until 1978, most states had laws capping interest rates for credit cards and consumer products. Lowering the current high interest rates, and the profits that come with them, has become a priority across the aisle. Ted Rossman, a senior industry analyst at Bankrate, described the feedback loop of high prices and high interest rates as "a tough cycle to break."

Persons: Lana Linge, it's, Linge, isn't, Adam Rust, Bruce McClary, TransUnion, Austan Goolsbee, Rust, You've, you've, Antoinette Schoar, Schoar, David Silberman, GOP Sen, Josh Hawley, Hawley, Democratic Sen, Elizabeth Warren, Michele Raneri, Ranieri, Ted Rossman Organizations: Consumer Federation of America, Federal Reserve, National Foundation, Credit, Federal Reserve Bank of New, New York Fed, Federal Reserve Bank of Chicago, Louis Federal Reserve, Federal, Financial, MIT, Center for Responsible Lending, Lawmakers, GOP, Democratic, Reserve, TransUnion Locations: overspending, Federal Reserve Bank of New York, South Dakota, Delaware

But many people are still wondering, what does a rate cut mean for my money? For those who’ve been waiting it out, the rate cut “will instill some hope in folks,” said Elizabeth Renter, senior economist at NerdWallet. Consider your (improved) debt repayment optionsThis week’s rate cut was good news for those struggling to unload themselves of credit card debt. They’re a popular savings instrument when interest rates are high, and as most economists expected, CD rates have already started declining since the Fed’s interest rate cut. “This rate cut is not something that should trigger you to go make any drastic changes to the overall direction of your portfolio,” he added.

Persons: Jerome Powell, ”, Elizabeth Renter, Michele Raneri, “, “ It’s, Rodney Lake, It’s, cardholders, Now’s, Lake, don’t, Freddie Mac, ” Renter, they’ve, Raneri, Lee Baker, there’s, Bankrate, Baker, it’s, —, “ Don’t Organizations: NerdWallet, TransUnion, Federal Trade Commission, GW Investment, George Washington University School of Business, Apex Financial Services, P Locations: U.S

☆ When interest-rate cuts will hit credit cards, car loans, and mortgages
▼ + stars: | 2024-09-18 | by ( Ayelet Sheffey | Madison Hoff | ) www.businessinsider.com time to read: +6 min

Read previewThe nation's central bank has finally cut interest rates for the first time in over four years. AdvertisementStill, Hamrick said within a day of the Fed's rate cuts, banks will likely adjust their prime lending rates, which will be noticed in credit-card rates "immediately." The Fed rate cuts indirectly affect mortgages, which are generally based on other interest rates that are loosely tied to the Fed funds rate. And when it comes to businesses, rate cuts will have a positive impact on their operations, making it cheaper to take out loans. Are you planning to make any big purchases now that the Fed has cut interest rates?

Persons: —, Mark Hamrick, Erica Groshen, Michele Raneri, Raneri, Hamrick, Elizabeth Renter, Renter Organizations: Service, Federal, Market Committee, Democratic, Fed, Business, Cornell University, Bureau of Labor Statistics, Consumer Financial, TransUnion, asheffey

☆ Average consumer now carries $6,329 in credit card debt. 'People are stretched,' expert says.
▼ + stars: | 2024-08-08 | by ( Jessica Dickler | Jessica Dickler Is A Personal Finance Writer For Cnbc. | ) www.nbcnews.com time to read: +2 min

Credit card debt is on the rise. Over the last year, roughly 9.1% of credit card balances transitioned into delinquency, the New York Fed reported. The average credit card charges more than 20% — near an all-time high. “With credit card balances at an all-time high and the average credit card rate hovering near record territory, it’s more important than ever to pay down this debt as soon as possible,” Rossman said. If you’re carrying a balance, try consolidating and paying off high-interest credit cards with a lower interest personal loan or switch to an interest-free balance transfer credit card, he advised.

Persons: TransUnion, ”, Michele Raneri, “, Ted Rossman, Bankrate, ” Raneri, ” Rossman Organizations: Federal Reserve Bank of New, New York Fed, Consumers Locations: Federal Reserve Bank of New York, TransUnion

☆ Interest rates remain steady once again — but it's likely the Fed will cut rates in September
▼ + stars: | 2024-07-31 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Read previewThe nation's central bank didn't give interest rate relief to Americans — yet. On Wednesday, the Federal Open Market Committee announced it would be leaving interest rates unchanged, continuing the pause that began last fall. And with the labor market slowing down while avoiding a recession, the Fed might have the evidence it needs to cut interest rates at its next meeting in September. However, predictions point to a rate cut — CME FedWatch, which estimates probabilities of interest rate changes based on the markets, showed markets think it's far more likely than not that rates will ease. Related storiesThe high interest rates have meant it's more expensive for Americans to borrow money for things like mortgages, credit cards, and auto loans.

Persons: —, Jerome Powell, Powell, Michele Raneri, Donald Trump —, Trump, Elizabeth Warren, John Hickenlooper, Sheldon Whitehouse Organizations: Service, Federal, Market Committee, Business, Fed, TransUnion, Fox News, Democratic Locations: May's, Sens

☆ Gen Zers in a survey said they need $200,000 a year to feel financially secure — more than any other generation
▼ + stars: | 2024-07-01 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Americans think they need a whole lot more money than they're making to feel comfortable, according to a new survey. The latest survey from Bankrate, which polled 2,407 US adults from May 16 to 20, looks at how much Americans think they need to make to feel financially secure. According to the survey, Gen Z respondents said a $200,000 annual salary would ensure their financial security. Millennials said they'd need $199,000, and for Gen Xers and baby boomers, their financial security targets were at $183,000 and $171,000, respectively. To be sure, it's not all bad for Gen Z. TransUnion's latest Consumer Pulse Study found that Gen Z is "the most stable of any generation" in this year's second quarter, with 45% of them reporting wage increases over the past three months.

Persons: Gen, Millennials, Gen Xers, Gen Zers, Sarah Foster, Z, Zers, Michele Raneri, it's, They're, Charlie Wise, that's, Zer Organizations: Service, Business, Survey, Consumer Finances, Washington Post, Bureau of Labor Statistics, BI, Millennials, TransUnion Locations: Bankrate

"Consumers need to understand that the cavalry isn't coming anytime soon, so the best thing you can do is take things into your own hands when it comes to lowering credit card interest rates," said Matt Schulz, chief credit analyst at LendingTree. But that hasn't deterred credit card issuers from offering generous terms on balance transfer cards, Rossman said. But right now, it's kind of a Goldilocks environment for credit card issuers." It's also an ideal time for consumers to take advantage of all the options credit card issuers are offering. A balance transfer credit card moves your outstanding debt from one or more credit cards onto a new card, typically with a lower interest rate.

Persons: Matt Schulz, Michele Raneri, APRs aren't, Schulz, Ted Rossman, Rossman, It's Organizations: Federal Reserve, TransUnion, CNBC, Finance, Treasury Department, Federal Reserve Bank of New Locations: U.S, Federal Reserve Bank of New York

That's because, taken together, the two primary Social Security funds are set to only be able to pay out full benefits through 2035; the Old-Age and Survivors Insurance Trust Fund, one of the main funds comprising Social Security, will start getting depleted in 2033. AdvertisementIn other words, the moment that today's older Gen Xers are ready to retire, their Social Security benefits could start to shrink. Gen Xers — born from 1965 to 1980 — have been deemed the country's "neglected middle child" by the Pew Research Center. And among the different generations, Gen Xers were the most likely to report that they were feeling financially insecure. That could set the stage for the new crop of Gen X retirees to arrive in an already-precarious retirement economy.

Persons: —, Gen X, Xers, Gen Xers —, YouGov —, Gen Xers, X, Gen Zers, Gen, Michele Raneri, aren't, Xer Organizations: Service, Gen, Social Security, Insurance Trust Fund, Business, Security, Pew Research Center, of Congress, Millennials, TransUnion, Survey, Alliance, Lifetime, Income

"It is becoming clearer and clearer that the Fed isn't going to lower interest rates anytime soon," said Matt Schulz, chief credit analyst at LendingTree. "If Americans want lower interest rates, they're going to have to do it themselves." What determines your credit card rateSince most credit cards have a variable rate, there's a direct connection to the Fed's benchmark. It's also an ideal time for consumers to take advantage of all the options credit card issuers are offering. A balance transfer credit card moves your outstanding debt from one or more credit cards onto a new card, typically with a lower interest rate.

Persons: —, Matt Schulz, Michele Raneri, aren't, Schulz, Ted Rossman, Rossman, It's Organizations: Federal Reserve, TransUnion, Finance, Treasury Department Locations: U.S

☆ Americans could save up to $300 a month on their mortgages if interest rates drop as expected in 2024
▼ + stars: | 2024-02-23 | by ( Cork Gaines | ) www.businessinsider.com time to read: +4 min

Homeowners who recently purchased properties with interest rates as high as 8% face much higher monthly mortgage payments than those seen a few years ago. Of course, interest rates will not return to 3% anytime soon, but homeowners don't need rates to drop much to see a big difference in their bank accounts. Homeowners with high-interest mortgage loans are expected to quickly refinance when rates drop. While mortgage interest rates started to fall in late 2023, they were above 7% for much of the year, peaking near 8% in October, and recently climbed back above 7%. Win McNamee/Getty ImagesWhenever cuts happen, a drop in rates would save existing and new homeowners money each month.

Persons: —, Michele Raneri, Raneri, Eric Audras, Raphael Bostic, Jerome Powell, Win McNamee Organizations: Service, Business, TransUnion, Atlanta Fed, CNN, . Federal Reserve Locations: TransUnion

Credit expanded by just 0.4% in the month, according to the Federal Reserve’s monthly credit report released Wednesday. And it still leaves consumers with record levels of credit card debt. Of that, credit card balances grew by $212 billion to $1.13 trillion, while mortgage balances rose by $112 billion to $12.25 trillion. “Credit card and auto loan transitions into delinquency are still rising above pre-pandemic levels,” said Wilbert van der Klaauw, economic research advisor at the New York Fed. Average card balances rose by 10% from a year ago to $6,360, a record.

Persons: ”, Wilbert van der, TransUnion, Michele Raneri, Scott Haymore, “ Deleveraging, Wells Fargo Organizations: Federal, Federal Reserve Bank of New, Auto, New York Fed, millennials, TransUnion, TD Bank Locations: Federal Reserve Bank of New York, Wells Fargo

☆ America's $1 trillion credit card bill really isn't as bad as it seems
▼ + stars: | 2023-09-24 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +7 min

US credit card debt hit $1 trillion for the first time ever this year. And with those considerations, the hefty credit card balance in the US actually isn't much of a problem. According to Michele Raneri, the vice president of financial services research at Transunion, credit card utilization has stayed around 22%. Already, the delinquency rate on loans issued in 2023 is lower than the delinquency rate on loans issued in 2021 and 2022. That suggests credit card delinquencies will soon peak around the fourth quarter of this year before declining, he estimated.

Persons: That's, Mark Zandi, They've, Zandi, Michele Raneri, they've, Raneri, Gen Zers, Gen Z, LendingTree, Wells Fargo Organizations: Economists, Service, San Francisco Fed, stoke, of Labor Statistics Locations: Wall, Silicon

☆ Analysts react to Federal Reserve leaving interest rates unchanged
▼ + stars: | 2023-09-20 | by ( ) www.reuters.com time to read: +8 min

Fed policymakers at the median still see the central bank's benchmark overnight interest rate peaking this year in the 5.50%-5.75% range, just a quarter of a percentage point above the current range. I do think that they'll remain data dependent and you'll probably hear that from Powell at the 2:30 press conference and going forward as well. So yes, they're talking about higher rates for longer, but it's really the economy that matters. This is because when the Fed announces an interest rate increase, credit card interest rates typically follow shortly thereafter, which may result in larger minimum monthly payments for credit card holders. While the decision not to raise interest rates this time round mitigates that for now, more interest rate increases may be on the horizon.

Persons: Jerome Powell, GARRETT MELSON, presser, GINA BOLVIN, Powell, BRIAN JACOBSEN, MENOMONEE, KARL SCHAMOTTA, GENNADIY GOLDBERG, it's, TOM MARTIN, MICHELE RANERI Organizations: Federal Reserve, U.S, Treasury, Fed, PPI, OF, TOM, Global Finance, Markets, Thomson Locations: BOSTON, Powell, WISCONSIN, TORONTO, U.S, ATLANTA, CHICAGO

☆ Average consumer carries $5,947 in credit card debt — a 10-year high
▼ + stars: | 2023-08-10 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

On the heels of another rate hike last month by the Federal Reserve, the average credit card rate is now more than 20% on average, an all-time high. "People aren't financing purchases at 20% because they have other options," said Greg McBride, chief financial analyst at Bankrate. "As a result, they are tapping into these available credit products to help them cope with rising expenses." As the number of credit card accounts in the U.S. rose, delinquencies notched higher, the report said. How to tackle high-interest credit card debtkrisanapong detraphiphat | Moment | Getty Images

Persons: John Sedunov, Greg McBride, Sedunov, Gen, TransUnion, Michele Raneri, Raneri Organizations: New York Fed, Villanova University's School of Business, Federal Reserve, Bankrate, TransUnion Locations: U.S

☆ Interest rates just went up again: What the latest Fed move means for you
▼ + stars: | 2023-07-26 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

And the Fed’s preferred inflation measure — the core Personal Consumption Expenditures Index — inched down to 4.6% in its latest reading. Credit cards remain very expensiveWhen Fed rates go up, so do credit card rates. So it’s not surprising that card rates in the past year have been trending at around 20-year highs. As of July 19, the average credit card interest rate is 20.44%, down slightly from the 20.58% recorded the week before, according to Bankrate.com. Second-quarter data from the Fed shows the average rate for them is 22.16%.

Persons: ”, Greg McBride, Michele Raneri, you’ll, it’s, Matt Schulz, Cardholders, Freddie Mac, they’d, McBride, Anna Bahney Organizations: New, New York CNN, Federal Reserve, Consumer, JPMorgan Chase, Bank of America, Fed, LendingTree Locations: New York

☆ Average credit card interest rate is a record 20.69%, but 0% offers are still available, experts say
▼ + stars: | 2023-06-20 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

The Federal Reserve may have paused its aggressive interest rate hikes for now, but that offers little relief for anyone with credit card debt. The central bank raised interest rates 10 times since last year — the fastest pace of tightening since the early 1980s — and that has caused credit card rates to hit an all-time high. As the federal funds rate rose, the prime rate did, as well, and credit card rates followed suit. The average credit card now charges a record 20.69% — nearly five percentage points higher than the beginning of last year, according to Rossman. "While the skip means interest rates may not rise again this month, the high credit card interest rates consumers are currently seeing are going nowhere anytime soon," said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.

Persons: Ted Rossman, Michele Raneri Organizations: Bankrate, Finance Locations: TransUnion

☆ Americans owe nearly $1 trillion in credit card debt—here's the breakdown by age
▼ + stars: | 2023-06-09 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +2 min

Americans now hold a record amount of credit card debt — nearly $988 billion, according to the Federal Reserve Bank's latest data. On average, Americans carry around $5,733 in credit card debt, according to TransUnion's latest report. "Gen Xers can be especially squeezed by credit card debt because they're living expensive years right now," Ted Rossman, senior industry analyst at Bankrate.com, told CNBC in January. Here's the average amount of credit card debt Americans hold at every age, according to TransUnion. How to start paying down your credit card debt

Persons: Michele Raneri, TransUnion's, Ted Rossman, Bankrate's Organizations: Federal Reserve, TransUnion, CNBC Locations: TransUnion's

☆ Instant View: Fed hikes another 25 basis points, hints it may be the last increase
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +7 min

TOM GARRETSON, STRATEGIST, RBC PORTFOLIO ADVISORY GROUP, MINNEAPOLIS, MINNESOTA"It was a pretty dovish rate hike today. The expectations were that it might be a bit more of a hawkish rate hike in terms of leaving the door open to further hikes if needed." "The updated language in the policy statement does suggest the bar is going to be quite high for further rate hikes. … The market is hoping or expecting the Fed to pause after this rate hike. From a consumer credit perspective, the impact of further rate hikes will likely continue to be felt by borrowers across a range of industries.

☆ Credit card debt is at an all-time high, putting households near 'breaking point,' study shows
▼ + stars: | 2023-03-09 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

That will cost credit card borrowers an extra $3.4 billion in interest charges over the next 12 months, WalletHub calculated. How to tackle credit card debt"Something has to give," Gonzalez said. It's time to rein in spending, pay off debt and avoid any new debt, she added. Zero percent balance transfer credit card offers are even more plentiful than they were a year ago and remain one of the best weapons Americans have in the battle against credit card debt, he said. Those rates have climbed recently, as well, but at 10%, on average, are still well below what you currently have on your credit card, according to Schulz.

☆ Cash-strapped homeowners are swarming to HELOCs at the fastest rate in more than a decade to pay for food, gas, and renovations
▼ + stars: | 2023-03-01 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Higher mortgage rates have curbed cash-out refinancing, one way of tapping the equity. HELOC rates have climbed, too, but homeowners have flexibility with how much financing they buy versus taking out a 30-year loan on the house. HELOC rates averaged 7.8% in mid February. High mortgage rates have created a lock-in effect in the US housing market as the majority of US home loans were created with 30-year rates below 4%. Since October, when he bought the property and started renovations, the interest rate on his loan has increased from 6.5% to 7.5%.

☆ U.S. credit card debt jumps 18.5% and hits a record $930.6 billion
▼ + stars: | 2023-02-03 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

On the heels of another rate hike this week by the Federal Reserve, credit card annual percentage rates are already near 20%, on average, and set to climb even higher. At the same time, more consumers are leaning on credit to afford increasingly expensive necessities, like food and rent. That helped propel total credit card debt to a record $930.6 billion at the end of 2022, a 18.5% spike from a year earlier, according to the latest quarterly report by TransUnion. For now, the unemployment rate is at a 53-year low, after a better-than-expected January jobs report. How to tackle high-interest credit card debt

☆ Fed opts for small rate hikes, expects to deliver 'ongoing increases'
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +4 min

The decision lifted the benchmark overnight interest rate to a range between 4.50% and 4.75%, a move widely anticipated by investors and flagged by U.S. central bankers ahead of this week's two-day policy session. MARKET REACTION:STOCKS: U.S. stocks fell after the Fed statement, but the Nasdaq recovered, last flat on the day. RYAN DETRICK, CHIEF MARKET STRATEGIST, CARSON GROUP, OMAHA"The Fed threw no curve balls, as they did what was widely expected. The door is cracking open to end rate hikes, but they still have a chance for one more rate hike at the next meeting." How close are we now with ending the rate hike cycle, when it’s clear employment costs are slowing?"

☆ Nasdaq climbs 2% as US stocks rise following smaller rate hike from the Fed
▼ + stars: | 2023-02-01 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

US stocks rose in volatile trading on Wednesday after the Fed hiked interest rates 25 basis points. That brings the fed funds rate target to 4.5%-4.75%, the highest since 2007. Fed Chairman Jerome Powell hinted more hikes are coming and warned rates would need to stay high for "some time." The latest increase brings the fed funds rate target to 4.5%-4.75%, the highest since October 2007. "The FOMC announcement indicates that additional rate hikes may be appropriate, while markets are only pricing one more increase," Temple said in a statement.

Search resuls for: "Raneri"

25 mentions found