Smart Borrower Blog

Archive for the ‘Other Loans’ Category

Credit Card Act Hasn’t Changed Much for College Students

A new study says that a new set of regulations aimed partly at reducing credit card debt among college students is having little effect. Jim Hawkins, an assistant professor at the University of Houston Law Center, recently authored a study which surveyed 500 students about their credit card experiences. Based on his findings, he believes that banks have found ways around the new laws. One of the rules of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 (which went into effect in February 2010) was that credit card issuers can no longer conduct marketing activities on college... more »

Consumers Pick Up the Pace on Credit Card Charging

American consumers are turning back to credit cards in full force, according to new data from credit card comparison website CardHub, indicating that there never truly was a downward trend in credit card spending. The website says that during 2011, consumers charged $48 billion in new credit card debt. That is 424 percent more than 2010 charges and 577 percent more than 2009 totals. That number is made up of $4 billion in total outstanding credit as well as $44.2 billion in consumer credit card defaults. “Looking back two years, with the exception of a single quarter, U.S. consumer debt... more »

Student Loan Debt Continues to Outpace Credit, Auto Debt

Americans have more invested in student loans than they do in car loans or on their credit cards, according to new information from the economists at the Federal Reserve Bank of New York. While this has been a trend for many months, student loan debt in the third quarter of 2011 now totals $870 billion for Americans across the country, representing a 2.1 percent increase from the second quarter. And as the New York Fed economists wrote on their blog , “With college enrollments increasing and the costs of attendance rising, this balance is expected to continue its upward trend.”... more »

Credit Card Use Jumped in December

U.S. consumers pulled out their plastic in greater numbers for purchases in December, according to information from the Federal Reserve Tuesday. Total credit debt increased substantially as well. Revolving credit, such as credit card debt, grew by $2.76 billion in December to $800.98 billion, after rising $5.58 billion in November. Non-revolving credit, driven by student loans and auto loans, posted a $16.55 billion increase, to $1.697 trillion, also following a major jump in November. Total consumer credit debt rose by $19.31 billion in December, a striking increase compared with a prediction from economists surveyed by the Dow Jones Newswires that... more »

Consumer Borrowing Makes Biggest Jump since 2001

Consumers borrowed money at a higher rate in November than they have in a decade, according to the latest report from the Federal Reserve. Total consumer borrowing grew $20.4 billion in November to $2.48 trillion, posting the largest monthly gain since November 2001 when loans increased by $28 billion. The new total is almost back up to pre-recession levels and significantly above the September 2010 decrease of $2.39 billion. Credit card borrowing and other revolving credit accounts jumped up $5.6 billion, the largest increase since March 2008 and the third consecutive monthly gain. Auto loans also rose $14.8 billion, almost... more »

Consumer Borrowing, Credit Card Use Up in October

Consumers continued to borrow more money in October, according to the latest figures from the Federal Reserve, and the trend could suggest either progress or danger. Total consumer credit grew by $7.6 billion to $2.457 trillion, outpacing September’s $6.88 billion increase. Americans have upped their spending and borrowing for 12 of the past 13 months, with August being the notable trend-breaker. Borrowing during that month fell by the most in 16 months. Still, in general U.S. consumers have been taking on more debt. Non-revolving credit, including student loans and car loans, rose 5.3 percent, or $7.28 billion in October. This... more »

Consumer Borrowing Makes Surprising Jump

Consumer credit borrowing in the U.S. increased substantially in September from the previous month, spurred on by rises in student and auto loans. Borrowing rose by $7.39 billion to a total of $2.542 trillion, according to the Federal Reserve. This was a particularly surprising increase after consumer credit fell $9.68 billion August, and analysts only predicted a growth of $4 billion for September. The increase was apparently led by a jump in borrowing for items like cars and tuition. Non-revolving credit, which includes both those types of loans rose $8.01 billion in September to a total of $1.662 trillion. Revolving... more »

Student Loan Debt Reaches Record Levels

Total student loan debt in the U.S. has surpassed national credit card debt, according to new figures from the Federal Reserve Bank of New York. New student loan funds borrowed last year grew to $100 billion dollars, a record high, and now total outstanding student loan debt has reached $1 trillion for the first time in history. Full-time undergraduate students borrowed an average of $4,983 last year, according to the College Board. That figure is more than double the average from 10 years ago, after adjusting for inflation. In the wake of the current economy, default rates on student loans... more »

Credit Card Lenders Look To Subprime Borrowers Again

After a few years of dramatically tightened lending standards, some banks and credit card companies are starting to reach out again to borrowers with less-than-perfect credit scores. According to data from credit bureau Equifax, new credit card accounts to subprime borrowers, those with a credit score below 660, rose 64 percent in the past year to 5.4 million during the first half of 2011. That growth dwarfed the 27 percent growth rate of total credit cards issued through June. Banks “want to grow and you can’t grow if you’re only lending to super-prime and prime customers all the time,” said... more »

Consumers Make Progress With Timely Credit Card Payments

In the latest quarter, consumers stayed current on their credit card payments at an impressive rate, according to data from credit reporting bureau TransUnion. Of all credit card accounts during the second quarter of 2011, only 0.6 percent were delinquent by 90 days or more, representing the lowest rate in 17 years. This number is down 19 percent from the first quarter this year and down 35 percent from the same period of 2010. A major reason for the falling rate is simply that Americans are shedding their credit card debts. The New York Federal Reserve Bank said recently that... more »