All articles tagged with #delinquency
A Washington Post column warns that mortgage delinquencies are creeping up after years of historically low rates, signaling trouble for homeowners with tight budgets. Although overall delinquency remains near low levels in the long term, the rise points to a quietly emerging risk that could affect those who can least afford higher payments.
Record-high car prices and elevated interest rates are pushing monthly auto-loan payments over $1,000 for many Americans, straining household budgets and boosting credit-card debt as borrowers stretch terms. Edmunds says more than 20% of buyers now pay over $1,000 a month for a new car, while the average payments are about $769 for new and $538 for used cars; delinquency is rising as rates edge down but payments stay elevated, offering little relief while prices remain high.
Falling behind on student loans can hinder rental applications, but borrowers can improve their chances by resolving delinquencies, being transparent about credit issues, highlighting strengths, using guarantors, and advocating for themselves with landlords.
The resumption of student loan payments after a pandemic-related pause is contributing to increased delinquencies on car loans, especially among subprime borrowers, as many are struggling to manage their debt and prioritize payments amid financial strain.
The New York Fed's Quarterly Report on Household Debt and Credit for the fourth quarter of 2023 reveals that household debt balances increased moderately across most loan types, with auto loan balances continuing to grow steadily. The report also highlights a rise in delinquency rates for auto loans and credit cards, particularly among Millennials and Baby Boomers, and in lower-income areas. The increase in car prices and average loan origination amounts, coupled with higher interest rates, may be contributing to the worsening performance of loans opened in 2022 and 2023.
Credit card debt in the US reached a new high of $1.13 trillion at the end of 2023, with an increase of $50 billion from the previous quarter, according to a New York Federal Reserve report. Delinquencies in credit card, student, and auto loan payments are on the rise, particularly among younger and lower-income households. The average credit card annual percentage rate hit a record high of 20.72%, potentially leading to increased financial strain for consumers. Total household debt has reached $17.5 trillion, with auto loan and mortgage balances also contributing to the uptick, amid the Federal Reserve's aggressive interest rate-hike campaign to combat inflation.
The costs associated with owning a car have skyrocketed, creating a financial burden for many drivers. The average annual cost of new-car ownership has risen to $12,182, reflecting increased purchase prices, maintenance costs, and finance charges. With 92% of households having at least one car, and 22% having three or more, car expenses have become a significant portion of household budgets. The article highlights the experiences of five car owners who are struggling with the high costs, including lease payments, loan interest rates, insurance, gas, and maintenance. These expenses, combined with other financial obligations, are causing stress and even delinquency for some borrowers.
A 23-year-old middle school teacher in Florida has been arrested for allegedly hosting student fights in her classroom and encouraging them to brawl while she watched from her desk. The teacher has been charged with contributing to the delinquency of a minor and is set to be arraigned next month. Several sixth-grade girls alerted administrators at Griffin Middle School in Tallahassee after Footman turned her classroom into a secret boxing pit.