American consumers are now more indebted than ever. A recently released Federal Reserve Consumer Credit report shows that U.S. consumer credit outstanding has reached historic levels as outstanding consumer credit is now at $4.7 trillion. In August, consumer credit increased at a seasonally adjusted annual rate of 8.3 percent. The previous rise in July had been 6.%.
These current levels of consumer debt show that the Federal Reserve raising rates has not slowed down consumer borrowing. While consumer credit declined in the years immediately after the 2007 – 2009 financial crisis, since the second quarter of 2011 until the second quarter of ...
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Supreme Court To Consider Challenge to Merchant Vendor Fees
Every time a consumer swipes his or her credit card, the credit card company collects a merchant vendor fee. Do most consumers know this? Probably not. This is because American Express policies prohibit retailers from educating consumers about these fees or giving consumers benefits for using lower-cost cards. Although retailers are fighting for the right to disclose these fees, credit card companies are determined to keep consumers in the dark.
Retailers are supporting an action that will be argued before the U.S. Supreme Court on Monday. The case, Ohio et al. v. American Express, began when the Federal Government and 11 states sued ...
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How Parents Can Help Their Children Apply for Credit
John was a college student who was working to establish credit so that he can build a good financial future. One month there was an oversight and he missed his car lease payment by a few days. He panicked, thinking that his credit was ‘ruined’. Fortunately, his parents set him straight about how the credit ranking system works. But what was exactly wrong with their son’s understanding that set off his panic state? Students should be taught ahead of time the truths and myths of obtaining credit, specifically, John should have been told the following:
Unless he is 30 days (or more) behind on a payment, his credit will not be affected. ...
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The Economy Under the Upcoming Trump Administration
The Question of the US Economy for 2017
Experts on all sides are weighing in regarding what the future economy will be like for the next four years. This is not a simple task. There are many factors to consider. For example, what will happen to the nation’s economy if the NAFTA trade agreement is nullified? What about the job market? Will jobs increase? Will the ‘repeal and replace’ of Obamacare help or hinder the economy? What will happen to interest rates of saving accounts, mortgages and credit cards? Will there be an epidemic of personal and business bankruptcies or a substantial decrease of debt? How will the stock market react to these ...
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Common Types of Interest Rates that Bank Use
Financial companies offer loans at that offer a variety of terms and conditions. In this article we will take a look at some of the most common types of interest rates that banks and other financial organizations use.
Let’s begin by understanding a common term called Compounding.
What is Compounding Interest?
Compounding simply means that the specified interest on a loan will be added to the interested that has already accumulated.
Annual Percentage Rate (APR)
Annual percentage rate (APR) is a financial term that is quoted by many financial firms that offer loans. It is simply an interest rate charged for the whole year. APR ...
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