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☆ Pizza for Thanksgiving: Gen Zers trying to save money are ditching tradition in favor of affordability
▼ + stars: | 2022-11-24 | by ( Shriya Bhattacharya | ) www.businessinsider.com time to read: +2 min

Wells Fargo's report found that the price of groceries has increased at a rate of 9.81%. Items like turkey have become more expensive, so Gen Zers are celebrating Thanksgiving differently. Many young people are also battling student debt — the average loan balance for Gen Zers is $20,900, which is 13% higher than millennials. A survey of 1,000 participants conducted by the financial advisor Personal Capital last month found that 32% of Gen Zers are choosing to adapt their Thanksgiving so they can spend less money. The survey also found that many young people are forgoing the tradition of centering their meal around turkey, opting for a cheaper option instead: pizza.

☆ Gen Z's finances are already tanking, and we're not even in a recession yet
▼ + stars: | 2022-11-23 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

Credit card debt is on the rise, and Gen Z is missing payments at an increasing rate. If the US enters a recession, young Americans could be disproportionately impacted. Consequently, the personal savings rate rose to its highest level on record. That's because young Americans are among the individuals hardest hit by economic downturns. In 2020 for instance, Gen Z's unemployment rate rose from 8.0% in February 2020 to 26.9% in April, while millennials' increased from 4.0% to 14.3%.

A good FICO credit score is a 670 or above, and a good VantageScore is a 661 or higher. A good credit score can get you more favorable interest rates rates on mortgages, auto loans, or a new credit card. How your credit score is calculatedWhen FICO and VantageScore assign you a credit score, they are really grading your credit report. For example, your credit history looks at the length of your credit history. However, hard inquiries stop factoring into your credit score after a year and drop off your credit report entirely after two years, so they don't permanently influence a credit score.

☆ Americans' financial fragility largely unchanged in 2022, NY Fed says
▼ + stars: | 2022-11-21 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

The regional Fed bank said in its latest Credit Access Survey, which was released on Monday and details developments for this year, that respondents reported "a slight increase in the subjective financial fragility of U.S. There was also little change among those who said they might need $2,000 unexpectedly, according to the New York Fed report, which concluded that both measures have been little changed since 2015, even as the coronavirus pandemic roiled the economy. The New York Fed report also found that overall there has been "a decline in consumer credit demand in 2022, with most credit application rates stable or weakening, except for a rise in credit card applications." The report was released as the U.S. central bank presses ahead with aggressive interest rate increases that are aimed at lowering high levels of inflation. Fed policy is also expected to drive up unemployment, although the job market has remained resilient so far.

☆ Wall St Week Ahead With Black Friday ahead, investors look to U.S. consumer stocks
▼ + stars: | 2022-11-18 | by ( David Randall | ) www.reuters.com time to read: +4 min

Consumer discretionary stocks, a group whose members run the gamut from Amazon.com Inc (AMZN.O) and automaker Tesla Inc (TSLA.O) to retailer Target Corp (TGT.N), have been walloped by surging prices, with the S&P 500’s consumer discretionary sector falling nearly 33% for the year to date compared with a nearly 17% fall for the broader index. Investors poured a net $1.05 billion into consumer discretionary stocks in the past week, the sixth-largest weekly inflows since 2008, data from BofA Global Research showed. “Everybody is watching the strength of the consumer and so far the consumer has held.”Yruma is bullish on retailers Nordstrom Inc (JWN.N) and Target. To be sure, consumer stocks have had more than their fair share of woes this year. The bank's analysts are underweight the consumer discretionary sector.

☆ NY Fed: Consumer debt rises in third quarter on strong demand, high inflation
▼ + stars: | 2022-11-15 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

That said, overall mortgage debt during the third quarter rose by $282 billion and hit $11.67 trillion at the end of September, the New York Fed said. The rise in consumer level debt took place in an economy where unemployment was low and consumer demand was high amid the worst levels of inflation seen in 40 years. INFLATION BOOSTS CONSUMER SPENDINGThe New York Fed report said that during the third quarter there was a 15% increase in credit card balances, which was the largest such increase in more than 20 years. The report noted that student loan balances declined slightly during the third quarter and stood at $1.57 trillion. A report from the New York Fed in September said that the president's plan could cancel out just under half a trillion dollars' worth of existing debt.

☆ Household debt soars at fastest pace in 15 years as credit card use surges, Fed report says
▼ + stars: | 2022-11-15 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

Households increased debt during the third quarter at the fastest pace in 15 years due to hefty increases in credit card usage and mortgage balances, the Federal Reserve reported Tuesday. The increase follows a $310 billion jump in the second quarter and represents a $1.27 trillion annual increase. The biggest contributors to that debt load came from mortgage balances, which rose $1 trillion from a year ago to $11.7 trillion, and credit card debt, which climbed to $930 billion. New York Fed researchers attributed the credit card growth to "very robust" consumption, rising prices and consumers using substantial levels of savings that remain on accounts. Auto loan debt, while posting only a slight increase on a quarterly basis, is up 5.6% from a year ago.

Also: Put your money in a high-yield savings account — you can earn around 3% interest right now. We just experienced the longest bull market in economic history, with the stock market increasing in value for 11 years straight. Consolidate your debt into fixed interest rate loansIf any of your debt has variable interest rates, consider moving that debt into a loan that has a fixed interest rate so your interest rate won't change. For instance, if you have credit card debt, chances are the interest rates have gone up. When you move your money into high-yield savings, consider also increasing your savings amount by 10%.

☆ Why investors have jumped off the Carvana bandwagon
▼ + stars: | 2022-11-12 | by ( Michael Wayland | ) www.cnbc.com time to read: +7 min

He touted the company's "landmark" second-quarter results on Aug. 5, 2021 that included the used car retailer's first-ever quarterly net profit. Analyst Adam Jonas cited deterioration in the used car market and a volatile funding environment for the change. Jonas said "a deterioration in the used car market combined with a volatile interest rate/funding environment" made for a "material risk" to the company. Used vehicle prices have so far remained steady, but that may not last long, as the wholesale costs continue to decline. The average used listing price for a used vehicle is stabilizing but remains near record highs of more than $28,200, according to Cox Automotive.

A good credit score to buy a car is often above 660, as you're then considered a "prime" borrower. While a good FICO credit score to buy a car with a loan is usually above 660, according to Experian data, there's no industry-wide, official minimum. According to Experian's analysis of auto loans in the second quarter of 2022, borrowers who received financing for a new car had an average credit score of 738, while borrowers who received financing for a used car had an average credit score of 675. What is a good credit score to buy a car? While FICO remains the most widely used credit score across all types of borrowing, an auto lender may also look at your credit score from VantageScore, a relatively new credit scoring system developed by the three credit bureaus.

An excellent credit score allows you to borrow money at lower interest rates and provides other benefits. The five credit score categories for FICO and VantageScore are as follows:Credit score category FICO VantageScore Poor/Very Poor 300-579 300-499 Fair/Poor 580-669 500-600 Good/Fair 670-739 601-660 Very good/Good 740-799 661-780 Exceptional/Excellent 800-850 781-850While a low credit score will hinder your borrowing efforts, having an excellent credit score comes with a wide range of benefits and possibilities. LendingTree found that people with excellent credit scores keep a credit utilization rate of 5.7% on an average credit limit of $58,514 spread over an average of 7.9 accounts. Keep credit inquiries to a minimumWhen we apply for credit — whether it's for a new credit card, a mortgage, or an auto loan — and a lender issues a credit check, it will appear on our credit report and may influence our credit score. Though you don't necessarily need an excellent credit score, it can certainly help you lead an easier financial life.

☆ New car prices are finally coming down. But not by much
▼ + stars: | 2022-11-10 | by ( Peter Valdes-Dapena | ) edition.cnn.com time to read: +6 min

CNN —New car prices are finally coming down. Over the past few months, though, prices have fallen to only about $230 over MSRP, on average, according to Edmunds. Land Rover models, on average, still sell for $4,500 over sticker price while Kia models sell for about $1,600 over sticker price. For the past 17 months, though, according to Cox Automotive, vehicle inventory shortages have enabled car dealers to push prices above MSRP. Used car prices are also starting to come down a bit, something that could prod new car shoppers back into the market, said Drury.

☆ Auto loan delinquencies increase as rates move higher
▼ + stars: | 2022-11-08 | 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 EmailAuto loan delinquencies increase as rates move higherCNBC's Phil Lebeau reports on where things are with the auto market in the third quarter.

☆ Auto loan delinquencies rise as loan-accommodation programs end
▼ + stars: | 2022-11-08 | by ( Phil Lebeau | ) www.cnbc.com time to read: +3 min

With inflation cutting into the budgets of Americans, a growing percentage of people with auto loans are struggling to make their monthly payments. "It leaves fewer dollars in their pocket to make the auto loan payment, because they've got to pay more for eggs and milk and other things." The rise in delinquencies also follows the end of loan-accommodation programs set up during the pandemic. Despite the rise in delinquencies, Merchant believes the auto loan market remains healthy. The average interest rate for a new-vehicle loan climbed to 5.2% in the third quarter, while the average rate for a used vehicle loan hit 9.7%, according to TransUnion.

☆ Few show concerns about auto loan delinquencies amid strong job market
▼ + stars: | 2022-11-08 | 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 EmailFew show concerns about auto loan delinquencies amid strong job marketAuto loan delinquencies are rising, but few are sounding the alarm bells. CNBC's Phil LeBeau joins 'Squawk Box' with the details.

☆ US consumers borrowed $25 billion more in September
▼ + stars: | 2022-11-07 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

Minneapolis CNN Business —American consumers borrowed another $25 billion in September, according to newly released Federal Reserve data, as higher costs led to further dependence on credit cards and other loans. “Generally speaking with cards, it’s getting harder to get a credit card,” Schulz said in an interview with CNN Business. According to the October 2022 senior loan officer opinion survey, standards tightened for approval of credit card loans while demand increased. That’s likely showing up in this consumer credit data, he said. “Any time you have credit card debt growth, it can either be a sign of confidence or a sign of struggle — it’s usually both,” he said.

☆ The Federal Reserve just upped the ante in its inflation fight (again). A central bank expert explains what it means and what happens next.
▼ + stars: | 2022-11-03 | by ( Phil Rosen | ) www.businessinsider.com time to read: +7 min

In case you missed it, you should know the Federal Reserve yesterday raised interest rates by 75 basis points. In this March 20, 2019, file photo, Federal Reserve Chair Jerome Powell speaks during a news conference in Washington. In his Wednesday press conference, Chairman Jerome Powell reiterated the central bank's commitment to bringing down inflation, made evident by the three-quarter point move. The pound is also down, as traders brace for the Bank of England's interest rate decision later today. The chief market strategist of a $1.1 trillion firm explained why markets could rally for the rest of the year but ultimately crater 10% next year.

As it battles inflation that remains at four-decade highs, the Federal Reserve is expected to hike its key interest rate another 0.75% Wednesday. This interest rate, known as the federal funds rate, affects the cost of borrowing and the pace of investment throughout the economy. As a result, some experts believe the Fed must keep raising interest rates, even if it drives unemployment higher. The U.S. unemployment rate currently stands at 3.5%. "This forces the Fed to continue its aggressive approach on interest rates."

How Consumers Credit Union auto loans compareHow Consumers Credit Union compares Consumers Credit Union Auto LoanPenFed Auto LoanNavy Federal Credit Union 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. If you make reliable, on-time payments, you may improve your credit score with an auto loan from a credit union. Consumers Credit Union will report your payments (or lack thereof) to the three major credit bureaus. Consumers Credit Union doesn't have a minimum credit score required for its auto loans.

☆ The Fed says it could cool it on rate hikes as soon as next month. Now the future of the economy depends on how long the increases last.
▼ + stars: | 2022-11-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Fed hiked interest rates by 0.75 percentage points on Wednesday. But Fed Chair Jerome Powell signaled the hikes could simmer down as soon as next month. "Incoming data since our last meeting suggests that ultimate level of interest rates will be higher than previously expected," he also said. "Increasing interest rates signals to working people that the government thinks we have too much money and we should have less money to spend." Powell stood by the hikes, but said they might soon come at a lesser scale to hopefully avoid a recession.

☆ Here's what the Federal Reserve's fourth 0.75 percentage point interest rate hike means for you
▼ + stars: | 2022-11-02 | by ( Jessica Dickler | ) www.cnbc.com time to read: +7 min

The Federal Reserve raised the target federal funds rate by 0.75 percentage point for the fourth time in a row on Wednesday, marking an unprecedented pace of rate hikes. The federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. As the federal funds rate rises, the prime rate does, as well, and your credit card rate follows suit within one or two billing cycles. Still, it's not the interest rate but the sticker price of the vehicle that's causing an affordability problem, McBride said. Federal student loan rates are also fixed, so most borrowers won't be impacted immediately by a rate hike.

Chase Premier Plus Checking℠ 3.5 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.5 out of 5 Stars Annual Percentage Yield (APY) 0.01% effective as of 7/1/2022. Interest rates are variable and subject to change Minimum Deposit Amount $0 Fees $25 View Full Details Learn moreChase Premier Plus Checking℠ 3.5 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.5 out of 5 Stars Annual Percentage Yield (APY) 0.01% effective as of 7/1/2022. Apply now A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.8 out of 5 Stars Editor's Rating A tooltip OUR EDITOR'S RATINGS ARE PRIMARILY BASED ON 3 THINGS: SIMPLICITY, AFFORDABILITY, AND VALUE. Apply now A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.6 out of 5 Stars Editor's Rating A tooltip OUR EDITOR'S RATINGS ARE PRIMARILY BASED ON 3 THINGS: SIMPLICITY, AFFORDABILITY, AND VALUE. Apply now A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.6 out of 5 Stars Editor's Rating A tooltip OUR EDITOR'S RATINGS ARE PRIMARILY BASED ON 3 THINGS: SIMPLICITY, AFFORDABILITY, AND VALUE.

☆ Another interest rate hike from the Federal Reserve is on the way: Here's how it may affect you
▼ + stars: | 2022-10-31 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

watch nowWhat a rate hike means to youThe federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. From your credit card and car loan to mortgage rate, student debt and savings, here's a breakdown of some of the major ways rate increases impact you:1. Still, it's not the interest rate but the sticker price of the vehicle that's causing an affordability crunch, McBride said. It won't budge until next summer: Congress sets the rate for federal student loans each May for the upcoming academic year based on the 10-year Treasury rate. Of course, anyone with existing education debt should see where they stand with federal student loan forgiveness.

How PenFed auto loans compareHow PenFed compares PenFed Auto LoanNavy Federal Credit Union Auto LoansPNC Auto Loans Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Between its top-notch BBB score and clean history, you might decide you're comfortable taking out a personal loan with PenFed. What credit score is needed for a PenFed auto loan? The credit union doesn't disclose its minimum credit score, but PenFed is more likely to approve you for a loan with a higher score. How long does it take PenFed to fund an auto loan?

But that higher inflation has already been baked into many tax and wage figures that will change in 2023. Income tax bracketsThe IRS tax brackets corresponding to your marginal tax rates are also shifting upward — by 7% — thanks to inflation. But many banks, especially those that are online-only, are also paying out more money through higher interest rates for high-yield savings and certificate of deposit accounts. California is the largest state that will see a cost of living adjustment next year, with the minimum wage rising to $15.50 for all establishments. California's increase is limited by a statute that declares the minimum wage cannot increase by more than 3.5% each year.

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