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☆ US consumer debt fears are overblown as borrowing slows and inflation cools, Moody's chief economist says
▼ + stars: | 2023-09-11 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

US consumers debt isn't as bad as many fear, according to Moody's chief economist. Mark Zandi highlighted that borrowing has moderated since the start of the year as inflation cools. He added that student loan repayments won't cause delinquency rates on other debts to rise. In a post on X, Mark Zandi shared a contrarian view to ongoing chatter about US consumer debt. He added that student loan repayments won't cause delinquency rates on other debt to rise much.

Persons: Mark Zandi, Jeff Gundlach, Zandi Organizations: Service Locations: Wall, Silicon

Now, given the current high car costs and interest rates, drivers are shifting their focus to less expensive models. That shift shows in so-called "days to turn" numbers, which measure how long cars are in dealer inventory before being sold. "People have stopped going for top-of-the-line cars and are going for mid-trim cars," he added, "That's where we're starting to see the shift." Paul Waatti industry analyst at AutoPacificFive years ago, there were 12 vehicles selling for an average price of more than $100,000. Know your budget — really Most car buyers use monthly payments to conceptualize how expensive a car is.

Persons: Patrick T, Joseph Yoon, homebuyers, Yoon, Edmunds, Brian Moody, Kelley, Moody, Paul Waatti, Waatti, they're, Tom McParland Organizations: Fallon, Bloomberg, Getty, Finance, Mitsubishi Mirage, Consumers, Chevrolet, Chrysler, Fiat, Honda, Hyundai, Kia, Mazda, Mitsubishi, Nissan, Subaru, Toyota, Volkswagen —, Auto, AutoPacific, Ferrari, Lamborghini, Royce, Automatch Consulting Locations: Autonation, Carvana, Buffalo , New York, Edmunds

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). Student loan payments can span an entire lifetime, with more Americans shouldering the student loan burden into their later years. It's really important to understand what you are signing up for with student loans — before the payments start. Bonus: What I did right with my student loansThe aforementioned is what I wish I had known before borrowing student loans. Understanding the unwanted lifetime commitment student loans can be, the impact of student loans needs to be fully explained and understood ... and really, the last option for a student furthering their education.

Organizations: Service Locations: Wall, Silicon

☆ This income fund has a yield of more than 5%, and is cheap compared to its peers
▼ + stars: | 2023-09-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Weitz Core Plus Income Fund (WCPNX) , which Carney co-manages with Nolan Anderson, received five stars and a bronze rating from Morningstar. Aggregate Bond Index]," Carney said. Enter, asset-backed securities. Asset-backed securities (ABS) follow in second place, making up 27.6% of the portfolio. As a result, participating in the asset-backed securities space requires a granular level of due diligence.

Persons: Tom Carney, Weitz, Carney, Nolan Anderson, Morningstar, WCPNX, There's, that's, Fannie Mae, Freddie Mac Organizations: Morningstar, Bloomberg Barclays U.S, Universal Bond, SEC, Bloomberg U.S, Aggregate Bond, Federal Reserve Bank of New, BBB, U.S, Fed Locations: Federal Reserve Bank of New York

☆ 'The vast bulk of companies are in big trouble': A renowned bear who called the dot-com bubble warns a recession is still on the way as bankruptcies rise — threatening to sink even the mega-cap stocks
▼ + stars: | 2023-09-02 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

While big firms have survived high rates, Edwards said a recession would eventually hurt them too. Here are the effective interest rates for a few cohorts of the S&P 1500. The Federal Reserve's Senior Loan Officer Opinion Survey shows 49% of banks are tightening lending standards for small companies. They weren't able to lock into long-term loans at almost zero interest rates and pile it high in the money markets at variable rates," Edwards said. "In our view, the current savings rate is unsustainably low, and the main downside risk to growth is that the savings rate will suddenly move higher."

Persons: Societe Generale's Albert Edwards, Edwards, haven't, Louis, that's, we'll, Brian Rose, Rose, Piper Sandler, it's Organizations: Societe Generale's, Societe Generale, American Bankruptcy Institute, Generale, Federal, Federal Reserve Bank of St, Institute, Supply Management's, UBS Americas, UBS Companies

☆ JPMorgan increases stake in Brazilian digital bank C6 to 46%
▼ + stars: | 2023-08-29 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +1 min

NEW YORK, Aug 29 (Reuters) - JPMorgan Chase & Co (JPM.N) has increased its stake in Brazilian digital bank C6 to 46% from 40%, the banks said in a statement on Tuesday, without disclosing the financial terms. The banks said C6 had expanded its number of clients to 25 million from 8 million since June 2021, when JPMorgan bought its initial stake, and had added products such as auto loans. Sanoke Viswanathan, JPMorgan's CEO of international consumer banking, said the investment in C6 Bank was an important part of the lender's global strategy. The credit portfolio of C6 had increased to 40 billion reais ($8.2 billion) from 9.5 billion when JPMorgan first invested, according to the statement. C6 posted a 2.2 billion real loss last year, due to increased provisions for credit losses.

Persons: Sanoke Viswanathan, Tatiana Bautzer, Chris Reese, Michelle Price, David Holmes Organizations: JPMorgan Chase &, JPMorgan, C6 Bank, C6, Thomson

Consider this: In July, just one car model — the Mitsubishi Mirage — had an average new-vehicle transaction price below $20,000, according to Kelley Blue Book data. The $20,000-or-below barometer is a sort of unofficial price threshold for an affordable new car, said Brian Moody, executive editor for Kelley Blue Book. Five years ago, there were 12 vehicles selling for an average price of more than $100,000. The average new-vehicle purchase price today is about $48,000, up from about $30,000 in 2012, according to Kelley Blue Book. Know your budget — really Most car buyers use monthly payments to conceptualize how expensive a car is.

Persons: Kelley, Brian Moody, Moody, Tom McParland, Paul Waatti, Waatti, Joseph Yoon, they're, Yoon, McParland Organizations: Mitsubishi, Manufacturers, Kia, Hyundai, Nissan, Mitsubishi —, Automatch Consulting, Consumers, Edmunds, Auto, Ferrari, Lamborghini, Royce

☆ Consumers aren't even close to being tapped out. Here's why, and what that means for the stock market.
▼ + stars: | 2023-08-26 | by ( Matthew Fox | ) www.businessinsider.com time to read: +5 min

Most projections for a stock market decline hinge on a weakening US consumer. Bearish investors cite $1 trillion in credit card debt, upcoming student loan payments, and a depletion of excess pandemic savings. But the US consumer has plenty of capacity to spend, and that's great news for the stock market. In reality, US consumers have plenty of firepower left to spend money, grow the economy, and drive the stock market higher. And given that consumption makes up about 70% of GDP, this strength should continue to flow through to the economy and stock market.

Organizations: Service, Bloomberg Mortgage Locations: Wall, Silicon

☆ Here's what to do if you could only afford a used vehicle and are saddled with high interest rates
▼ + stars: | 2023-08-25 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +3 min

I Love Images | Cultura | Getty ImagesRising interest rates are pushing auto loan rates upwards for both new and used cars across the U.S. "If you have good credit, you get lower interest rates," he said. "If you have poor credit, you're going to get higher interest rates." Interest rates on used cars currently are the highest in Alabama, Georgia, Louisiana, Mississippi, Nevada, New Mexico, Ohio, South Carolina and West Virginia. The longevity risk associated with used cars is yet another factor driving up interest rates for car shoppers, Yoon said.

Persons: Edmunds, Joseph Yoon, Tom McParland, McParland, Here's, Yoon Organizations: Getty, U.S, Automatch Consulting, WalletHub, Finance, AAA Locations: Alabama , Georgia, Louisiana , Mississippi , Nevada , New Mexico , Ohio, South Carolina, West Virginia, Ohio, New Mexico, Massachusetts

☆ Americans are shopping less. But the US economic engine is still humming
▼ + stars: | 2023-08-23 | by ( Allison Morrow | ) edition.cnn.com time to read: +6 min

That’s important, because Americans’ spending on goods and services accounts for two-thirds of US gross domestic product. Historically, sluggish retail sales, credit card delinquency and even shoplifting have been signs of a dark cloud on the horizon. The question of credit card debt is another area where the nuance matters. And as a share of total credit card debt, it is relatively low. But Americans’ credit card debt is unquestionably rising.

Persons: CNN Business ’, New York CNN —, Macy’s, they’ve, Taylor Swift, Barbie, ”, Ubers, Covid, Taylor, Sarah Yenesel, Chris Rupkey, Leticia Miranda, That’s, TJ Maxx, Louis Navellier, they’re, Brett Ryan, —, Alicia Wallace, you’ll Organizations: CNN Business, New York CNN, Dick’s Sporting Goods, Nike, FwdBonds, Atlanta Federal Reserve, “, “ Retailers, Deutsche Bank, Walmart, Amazon, Federal Reserve, Bank of America Locations: New York

☆ Macy’s sounds the alarm on credit card delinquencies
▼ + stars: | 2023-08-23 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

This situation is hurting Macy’s business, driving down credit card revenue by 36% year over year and contributing to a quarterly loss, he said. Citing worsening consumer leverage metrics, Macy’s is bracing for a further increase in “bad debt” in its credit card portfolio. “I think the credit card revenue is an indication of some of the pressures that we’re actually seeing on the consumer,” Mitchell said. Consumer credit card debt topped $1 trillion during the second quarter for the first time on record, according to the New York Federal Reserve. More concerningly, new credit card and auto loan delinquencies have now surpassed pre-Covid levels, according to Moody’s Investors Service.

Persons: New York CNN —, ” Adrian Mitchell, Macy’s, ” Mitchell, ” Macy’s, Locker Organizations: New, New York CNN, Citibank, Consumer, New York Federal Reserve, Moody’s Investors Service, Credit Locations: New York, Wells

☆ America's consumer-debt stress is mounting - mortgage rates top 7%, credit-card liabilities hit $1 trillion, and now auto-loan defaults are on the rise
▼ + stars: | 2023-08-22 | by ( Joseph Wilkins | ) www.businessinsider.com time to read: +3 min

Delinquencies on auto loans are rising again – and this could spell trouble for American consumers. Defaults on car loans have risen above pre-pandemic levels to over 2%, per the FDIC. "The trends in consumer loan performance could deteriorate in 2023 if the labor market or economic conditions soften," the report warned. "The concerning asset quality trends in auto loans may worsen if auto prices normalize." US consumer credit-card debt topped $1 trillion last quarter for the first time ever, according to Fed data.

Persons: –, Ray Dalio Organizations: Federal Reserve, Service, Federal Deposit Insurance Locations: Wall, Silicon, delinquencies

☆ Wall Street is declaring victory too early — the US is still headed for a recession
▼ + stars: | 2023-08-22 | by ( William Edwards | ) www.businessinsider.com time to read: +11 min

In theory, these higher interest rates push down demand and slow inflation by forcing companies to cut prices to attract stretched-thin customers. And Americans have been spending right through the higher interest rates: Personal consumption expenditures and retail sales numbers have continued to forge upward. But eventually, this attitude will wane as people realize that the higher rates aren't a flash in the pan. The Treasury yield curve measures the different interest rates that are paid out on various bonds issued by the US government. It's the same story every time, both Kantrowitz and Rosenberg say: Investors are bad at pricing in a recession before it unfolds.

Persons: Michael Kantrowitz, Piper Sandler, Milton Friedman, Bob Doll, Doll, David Rosenberg, Rosenberg, Tom Essaye, Essaye, Granger, Kantrowitz, Jerome Powell, William Edwards Organizations: Philadelphia Fed, Bank of America, JPMorgan, Consumer, Crossmark Global Investments, BlackRock, Silicon Valley Bank, Rosenberg Research, Fed, Auto, Wall, CPI, Institute for Supply Management's, Treasury, Royal Bank of Canada Locations: Silicon, YOLO

Consumers Credit Union Frequently Asked QuestionsHow long does Consumers Credit Union take to approve a loan? Consumers Credit Union TrustworthinessConsumers Credit Union is a Better Business Bureau-accredited business that has an A+ grade. Consumers Credit Union CompetitorsHow Consumers Credit Union compares Consumers Credit Union Auto LoanPenFed Auto LoanNavy Federal Auto Loans Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Borrowers who pay a one-time $5 membership fee to the Consumers Cooperative Association qualify for membership with Consumers Credit Union. Navy Federal's minimum rates are more competitive than Consumers Credit Union, but you'll need an excellent credit score to qualify for them.

Persons: You'll, hasn't, Ryan Wangman Organizations: Consumers Credit Union Auto Loan, Consumers Credit, Credit Union, Consumers Credit Union, Consumers Credit Union Auto, Consumers Cooperative Association, Consumers Cooperative Association ., Auto Loan, Auto, Social, Chevron, Consumers, Union, Auto Loan Navy Federal Auto Loans, . Navy, Navy, Department of Defense, Finance, Northwestern University, Boston Globe Locations: Chicago

☆ Can you make so much money that your credit score doesn't matter? 'Absolutely not,' says banking expert
▼ + stars: | 2023-08-15 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +2 min

When it comes to borrowing money, "credit score is usually king," J.R. George, senior vice president at Trustco Bank, tells CNBC Make It. Put bluntly: Is it possible to have an income high enough to make your credit score irrelevant? Higher earnings can certainly help you attain good credit, but only if you're managing your money and debt payments wisely. Here's why a good credit score is almost always more important than your income. Good pay doesn't mean good habitsYour credit score on its own doesn't say much about your income.

Persons: J.R, George Organizations: Trustco Bank, CNBC, Verizon

☆ Once you hit this credit score, ‘there’s no benefit to scoring higher,’ says expert: ‘It’s just bragging rights’
▼ + stars: | 2023-08-14 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

While having a perfect 850 credit score is impressive, you don't necessarily need it to unlock the best benefits. Here are the ranges that generally qualify as poor, fair, good, very good and exceptional, according to Experian. "Every 20 points or so can make a big difference in the battleground between fair, good and excellent credit," he says. Say you have a 675 credit score and qualify for a $300,000 mortgage with an interest rate of 7.5%. "This is a great illustration of why your credit score really matters," he says.

Persons: Ted Rossman, Rossman, you'd Organizations: CNBC

☆ Taylor Swift's economic boost is ending - and other reasons why investors should still expect a US recession
▼ + stars: | 2023-08-14 | by ( Matthew Fox | ) www.businessinsider.com time to read: +4 min

A US recession is still on the table despite moderating inflation and a steady jobless rate, according to Raymond James. The firm said consumer strength and employment trends are set to weaken after a few strong years. Consumer strength is likely to weaken. "And the short-term economic boost from Taylor Swift's 'Eras Tour' is ending as it moves overseas. And this has already started to translate into weaker demand for loans, as the net percentage of banks reporting stronger demand for loans has fallen to its lowest level since 2009."

Persons: Raymond James, Larry Adam, Adam, we're, Taylor Swift's, capex Organizations: Service, Consumers, Goods Locations: Wall, Silicon

☆ When student loan payments resume, 56% of borrowers say they'll have to choose between their debt and buying groceries
▼ + stars: | 2023-08-13 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +3 min

Federal student loan payments are coming back, and they're going to wreak havoc on borrowers' budgets. Cutting back on nonessential spending will be the most typical way borrowers will adjust to make their student loan payments, according to Credit Karma. Even higher earners will struggle when payments resumeUnsurprisingly, 68% of borrowers with household incomes under $50,000 say they'll have to choose between keeping up with their loan payments and buying necessities, Credit Karma finds. Still, only 34% of borrowers say they'll apply for an IDR plan to lower their monthly payments, according to Credit Karma. 3 tips to manage student loan repayment and other bills

Persons: Biden, Karma Organizations: Karma

☆ Only one car model sold for under $20,000 in July — but experts say vehicle prices are stabilizing
▼ + stars: | 2023-08-11 | by ( Alexa St. John | ) www.businessinsider.com time to read: +4 min

Even as prices improve, there was only one car model sold below $20,000 in July. Today, that's not the case, but experts say buyers might see some relief from sky-high car prices soon. The only car model that sold below $20,000 last month was the Mitsubishi Mirage, transacting for an average $19,205, according to Kelley Blue Book. Now, it's challenging to find a ride in the $20,000 price range even if a shopper is considering used. They hit $53,469 in July, down nearly 18% less from $65,108 one year ago, per Kelley Blue Book.

Persons: that's, Kelley, Kia Rio, COVID, That's, Rebecca Rydzewski Organizations: Mitsubishi Mirage, Toyota Corolla, Nissan, Cox Automotive

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailU.S. car loans total $1.5 trillion. Why consumers are strugglingCar loan debt in the U.S. is at a record high of $1.56 trillion. Between the Covid-19 pandemic, supply chain issues, alleged predatory lending practices, inflation, and the Federal Reserve's interest rate hikes, getting an auto loan has gotten more stressful, difficult and expensive. CNBC spoke with Chase Auto and Toyota Financial Services. Here's what they say is happening in the auto loan industry and what consumers can do to ensure they're protected.

Organizations: U.S, CNBC, Chase Auto, Toyota Financial Services Locations: U.S

☆ What the highest interest rates in 16 years mean for you
▼ + stars: | 2023-08-10 | by ( Noah Sheidlower | ) www.businessinsider.com time to read: +7 min

Bank prime loan rates, the interest rates banks charge creditworthy customers, are typically about 3 percentage points higher than the Fed funds rate. In the short term, the Fed funds rate also affects Treasury yields, or the interest rate the government pays on its debt obligations. These yields influence how much consumers pay on real estate and equipment, as they set a baseline for other interest rates. Ninety-day CD rates track almost identically to the Fed funds rate, meaning these CDs have paid higher interest rates as the Fed hikes rates. Large corporations also are directly affected by higher interest rates, as the cost of borrowing money also follows the Fed funds rate.

Persons: Michelle Bowman, stabler, WalletHub Organizations: Service, Fed, Federal Reserve, Federal, Market, Bank, Treasury Locations: Wall, Silicon

☆ The rate of Americans failing to pay credit cards and car loans climbs above pre-Covid levels
▼ + stars: | 2023-08-10 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New credit card and auto loan delinquencies have now surpassed pre-Covid levels, according to a Wednesday report issued by Moody’s Investors Service. This metric is now ahead of where it was in the second quarter of 2019, before the Covid-19 pandemic rocked the economy. The rate of new auto loan delinquencies is also on the rise, hitting 7.3% in the second quarter, compared with 6.9% in the first quarter. Auto loan and credit card delinquencies remain well below Great Recession levels. The good news from the Moody’s report is that fewer Americans are falling behind on their mortgage payments.

Persons: New York CNN —, That’s, Moody’s Organizations: New, New York CNN, Moody’s Investors Service, New York Federal Reserve, Auto Locations: New York

☆ What does Moody’s downgrade mean for markets?
▼ + stars: | 2023-08-09 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

CNN —Moody’s on Monday evening downgraded 10 US banks and put the credit ratings of six others on review, an indication that the agency could also eventually downgrade those institutions. Some investors say that while the Moody’s downgrade isn’t groundbreaking, it’s a reminder that the economy, and markets, still have challenges ahead. Moody’s downgraded Commerce Bank, BOK Financial, M&T Bank, Old National Bank, Prosperity Bank, Amarillo National Bank, Webster Financial, Fulton Financial, Pinnacle Financial and Associated Bank. Wall Street firms fined $549 million for using WhatsApp and other channelsWells Fargo is among a number of Wall Street firms that admitted Tuesday to using WhatsApp, Signal and other messaging platforms for “off-channel” communications in violation of federal recordkeeping requirements. The Securities and Exchange Commission said the Wall Street firms acknowledged wrongdoing and have agreed to pay penalties totaling $289 million, reports my colleague Matt Egan.

Persons: CNN — Moody’s, JPMorgan Chase, Wells, Goldman Sachs, BNY, Cullen, Frost, ” Moody’s, ”, Kara Murphy, Fitch, Christopher Marinac, Janney Montgomery Scott, Price, Matt Egan, Houlihan Lokey, Alicia Wallace Organizations: CNN Business, Bell, CNN, Bank, Dow Jones, Nasdaq, JPMorgan, Banking, BNY Mellon, Northern Trust, Frost Bankers, Truist Financial, US Bank, Moody’s, Commerce Bank, BOK, T Bank, National Bank, Prosperity Bank, Amarillo National Bank, Webster Financial, Fulton Financial, Pinnacle Financial, Associated Bank, PNC Financial Services, Financial, Citizens Financial, Fifth Third Bank, Huntington Bank, Regions Financial, Cadence Bank, FNB Corp, Simmons, Ally Financial, Bank OZK, Valley Bank, Signature Bank, Federal Reserve, Kestra Investment Management, Consumer, Wall Street, Securities, Exchange Commission, SEC, BNP, SG Americas, BMO Capital Markets, Mizuho Securities, SMBC Nikko Securities, Federal Reserve Bank of New Locations: Wells Fargo, Amarillo, Marinac, Wells, SMBC Nikko Securities America, WhatsApp, Federal Reserve Bank of New York, York

☆ Soft landing vs. mild recession: What advisors are telling their clients about the economy
▼ + stars: | 2023-08-08 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

These shifts have sparked conversations among financial advisors and their clients, who may have varying levels of optimism about the country's economic outlook. Of course, with recessions notoriously difficult to predict, even for economists, advisors have warned clients about making fear-based investing decisions. Recession 'highly unlikely' in the next 12 monthsOne definition of a U.S. recession is two consecutive quarters of negative gross domestic product, or GDP, which happened during the first two quarters of 2022. 'We constantly educate our clients'Whether the economy is heading for a mild recession or soft landing, experts emphasize the need for ongoing client education. "We constantly educate our clients and make them prepared for whatever the world's going to throw their way," she added.

Persons: buzzword, Douglas Boneparth, Boneparth, Ted Jenkin, Jenkin, Carolyn McClanahan Organizations: Federal Reserve, Bone, CNBC's, U.S . Bureau of Labor Statistics, U.S . Labor Department, National Bureau of Economic Research, CNBC's FA, Planning Partners Locations: U.S, New York, Atlanta, CNBC's, Jacksonville , Florida

☆ NY Fed: Credit card debt sees biggest increase since 2021 & auto loan debt rises 1.3% in Q2
▼ + stars: | 2023-08-08 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNY Fed: Credit card debt sees biggest increase since 2021 & auto loan debt rises 1.3% in Q2CNBC's Steve Liesman reports on new data from the New York Federal Reserve.

Persons: Steve Liesman Organizations: New York Federal Reserve

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