Consumer News

Consumer News, Credit Card Debt

Credit Card and Car Loan Defaults Hit 10-Year High

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A number of consumers are defaulting on their credit cards and car loans to the point where the number of defaults reported are the highest seen since the financial crisis. With inflation not nearing an end any time soon and interest rates continuing to rise, the number of consumers defaulting is expected to grow.

This information comes from data provided by the credit agency, Equifax. The agency found that credit card delinquencies have hit 3.8 percent while car loan defaults have hit 3.6 percent. These figures are the highest ones seen in more than 10 years.

Car Repossession, Consumer News

Car Repossessions Hit a Decade High

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Car repossessions have reached a figure not seen in over a decade. According to Fitch Ratings, the number of subprime auto borrowers who were at least 60 days past due on their car payments increased to 5.67 percent (5.67%) from 2.5 percent (2.5%), which was the figure reported in April 2021.  

Numbers like these have not been seen since January 2009 when 5.05 percent (5.05%) of subprime car borrowers were at least 60 days late on their car payments during the peak of the Great Recession.

Consumer News

What Another Federal Reserve Hike Will Mean for Consumers

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With inflation continuing to cause problems for American consumers, financial analysts worry another Federal Reserve rate increase is on the horizon. No official news has been released regarding whether an increase will happen, but experts anticipate one in the near future. Its effects could prove to be damaging to the nation’s economy, however.

The Federal Reserve has already increased interest rates this year, and the effects have been felt. The cost of existing credit card debt has already gone up by just under $23 billion due to the Federal Reserve’s rate increases so far in 2022. If the Federal Reserve increases rates again before the year ends, existing credit card debt is expected to go up by another $3.2 billion. Additionally, WalletHub projects that consumers will end 2022 with approximately $110 billion more in credit card debt than they started the year 2022 with, which makes a national record.

Consumer News

Florida Sending $450 Check Per Child to Nearly 60,000 Families Across the State

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As the new school year approaches, low-income Florida families will receive a $450 check to help offset the cost of rising inflation. For those who have been worried about the legitimacy of the check, the good news is the check is not a scam but is, in fact, legitimate.

This year, a record state budget was signed into law by Florida Governor, Ron DeSantis. This budget included millions of dollars to provide one-time payments to Florida families with young children. These payments included parents with foster children, adoptive families, and single parent households.

Consumer News, Credit, Credit Card Debt

The Best Ways to Handle Your Credit During Inflation

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The cost of living has continued to rise throughout the first half of 2022, leaving many consumers struggling to make ends meet. It seems the cost of everything has skyrocketed, from groceries to gas. As a result, three in five American consumers say they are living paycheck to paycheck. Many of these individuals are relying on credit cards to pay for necessary expenses, but unfortunately, adding to their credit card debt only complicates financial problems.

Consumer News, Predatory Lending Practices

Consumers Being Lured Into Predatory Car Repair Loans

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Predatory lending practices are becoming more common when it comes to companies attempting to “help” consumer fund car repairs. Many of the major car repair shops, including AAMCO, Jiffy Lube, Midas, Precision Tune Auto Care, Grease Monkey, and Meineke, are offering financial assistance to consumers who are not able to pay for their car repair expenses. The problem is, these car repair loans can end up charging up to 189 percent interest, according to a recent study by Consumer Reports.

Many states have laws issuing caps on interest rates to avoid predatory lending practices. However, companies have become wise to these laws and evade them by teaming up with a bank in a state that does not have an interest rate cap. This practice is also known as “rent-a-bank,” and it falls into a legal gray area.

Consumer Bankruptcy, Consumer News

DeSantis Vetoes Florida Bankruptcy Relief Bill

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Gov. Ron DeSantis vetoed a measure last week that would have provided some much-needed relief for those struggling financially in Florida.  The specific measure, HB 265, was passed unanimously by both the state senate and legislature during the most recent legislative session, where it was quickly vetoed by DeSantis. This bill represents the third bill vetoed by the governor.

This bill would have given Floridians facing bankruptcy relief by providing them credit for any equity they may have had in their vehicle. The law would increase the bankruptcy exemption provided to debtors in their cars from $1,000 to $5,000.

Consumer Debt, Consumer News

Survey Shows 1 in 5 Workers Run Out of Money Before Payday

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As the cost of living rises and inflation is at an all-time high, many American households have been pushed to the brink. According to a recent study from Salary Finance, 1 in 5 workers cannot make it from paycheck to paycheck.

As the cost of living continues to rise, many Americans are finding themselves struggling to make ends meet.  According to Salary Finance, approximately 20 percent of employees run out of money before their next paycheck. This is up five percent from the previous year.