Consumers Unexpectedly Borrowed More in September Nov 8, 2008
Graphic shows outstanding consumer debt from revolving credit accounts; (AP) ... Consumer debt rose by $6. (ABC News -- Wire)
Campaign is one point of hope Nov 7, 2008
Looming rapidly into sight is the more than $20 trillion of private sector corporate and consumer debt. As is reflected in widening credit spreads and the threatened bankruptcy of national business icons such as GM and Ford, this debt is also being called increasingly into question. (Asia Times Online)
Money for nothing Nov 6, 2008
" Today, the "legacy" of soaring house prices and record levels of borrowing amounts to a mind boggling 1.4 trillion. In other words, the total amount of consumer debt - what we owe on mortgages, loans and credit cards - outstrips the entire gross domestic product, or GDP, of the country. No life Bruce Eyre from Wiltshire is one such consumer who is now coming to terms with his own personal debt crisis. With more than 250,000 owed to his creditors, he has decided to declare himself bankrupt,... (BBC News -- UK)
Chairman and Managing Director addresses to AGM Nov 5, 2008
Defaulted consumer debt which is the primary asset with which this business deals is increasing ... One of the few security companies in the industry with a network of Australian Grade A1 (or New Zealand equivalent) monitoring stations The lowest customer attrition levels in recent history The strongest organic sales growth since 2001 Increasing channel sales growth, particularly in Australia Strong growth in medical alarm monitoring in New Zealand Strong pipeline of accretive acquisition... (Sydney Morning Herald)
Basic principles Nov 5, 2008
In one area, consumer debt, Americans are better off. Obviously, some major changes are needed. (Florida Times-Union)
Bill collectors get tough, and complaints surge Nov 4, 2008
The complaints are also being attributed to the explosive growth in the number of companies that buy up bad consumer debt at a discount and try to collect whatever they can. U.S. law allows creditors to take aggressive steps to collect a debt, including going to court to freeze a debtor's bank accounts. (The Star Online, Malaysia -- Business)
Deep in Debt Nov 3, 2008
In the interwar years, commercial banks began to invest in consumer debt, and retailers started to profit on the financing -- and not just the selling -- of goods. After World War II, indebted suburban Americans could leave their mortgaged homes in financed cars to shop on department store credit. (Boston Globe)
Paul Krugman: When consumers capitulate Nov 1, 2008
Lately, however, the savings rate has generally been below 2 percent - sometimes it has even been negative - and consumer debt has risen to 98 percent of GDP, twice its level a quarter-century ago. Today in Opinion. (International Herald Tribune)
Credit Card Losses Sting Banks; Borrowers Face Tougher Terms Oct 29, 2008
Even so, higher charge-off rates are an added headache for financial institutions saddled with big mortgage-loan defaults and growing losses on auto loans, student loans and other consumer debt. "Banks will have to set aside more provisions to cover those charge-offs and that will depress earnings," said Keith Leggett, a senior economist at the American Bankers Association. (Investors Business Daily)
Keeping trains on tracks is Ramos's next challenge Oct 29, 2008
Consumer hardship has hit the new and used vehicle market, as have high consumer debt levels and the increase of almost 40 percent in interest rates since June 2006. Many consumers are both unwilling and unable to buy new or used vehicles - and dealers' stock levels have risen alarmingly. (Business Report, South Africa)
Is U.S. buy-buy-buy mentality best? Oct 28, 2008
6 trillion in nonmortgage consumer debt. Meanwhile, much of what we buy comes from other countries, while those nations tend not to buy as much of our stuff. (Fresno Bee -- Business)
Better to pay off bills or hold onto cash? Oct 28, 2008
Without savings and with less home equity to fall back on, American households are struggling with high consumer debt and a rising cost of living while trying to repair or improve their personal balance sheets. "Generally speaking, if people have high consumer debt, they really should focus on getting rid of that," said Eric Tyson, author of "Personal Finance For Dummies." One exception, he said, "is if someone has so much debt they may declare bankruptcy, they would do better to hold onto their... (Pittsburgh Post-Gazette, PA)
Evil Wall Street Exports Boomed With `Fools' Born to Buy Securitized Debt Oct 28, 2008
U.S. consumer debt tripled in the two decades after 1988 to $2. 6 trillion, according to the Federal Reserve. (Bloomberg)
Perhaps the financial fire of 2008 will burn off some of the investment chaff Oct 27, 2008
Consumer debt continually set new records. Combustible material was piling up everywhere, waiting for an ignition source. (Globe and Mail -- Business)
Socialism robs us of free agency Oct 26, 2008
JGN69 wrote on Oct 25, 2008 10:15 AM:" Mr. Nilson writes: Freedom works and socialism never will. This statement is from a free agent of propaganda. Its old school Cold War rhetoricnonsense today and when it came out of the propaganda mills decades before. Are the people in the social democratic states of Denmark, Sweden, Norway, Ireland, Britain, Netherlands, Canada not free? You mistake socialism for totalitarianism. Is it the same thing? Ask a Swede, the Dutch, etc of course... (Logan Herald Journal, UT)
With $605 million already, Obama seeks only $10 more from each of us... Oct 24, 2008
Having hauled in a record $208,333 every hour of every day last month -- -- plus a few more unreported millions so far this month, is worried that he might come up short in the political money war with the - ticket. Just to relieve himself of that $150 million before the polls open, Obama will have to spend $12. (The Drudge Report)
Britain's boom is over and not everybody minds Oct 21, 2008
One-third of consumer debt in all of Europe is held by people in Britain, said Chris Tapp, deputy director of Credit Action, which counsels people about how to handle debt. Audrey Hurren, a retired secretary of 65 who was waiting for the subway in central London the other day, put it a different way. (International Herald Tribune)
Financial crisis spares Russia's 'average Joe' Oct 21, 2008
The average Russian has little consumer debt and no exposure to the stock market via pension plans. The stock market is "totally speculative and not a place where most Russians would ever choose to put their money," says Sergei Glazyev, director of the independent Institute of New Economy in Moscow. (Christian Science Monitor)
THE ECONOMY IN TURMOILThe Great Depression - how close are we? Oct 21, 2008
"That was a time of exuberance in financial markets; this is a time of exuberance in financial markets. (Both times) there was a big rise in consumer debt and leverage in general. That was a time when installment credit was taking off. People were buying all sorts of items - automobiles, radios. There were a lot of consumer purchases on installment credit. There was a lot more reliance on debt, including buying stock on margin." ... -- In the 1920s, outstanding consumer debt (excluding mortgage... (San Francisco Chronicle)
Many Georgia mortgage holders still struggling to pay Oct 20, 2008
Some blame unwillingness by lenders until very recently, while others say the sheer magnitude of the problem overwhelms the bankers and consumer debt counselors working on the issue. Still others blame the government, saying solutions have been focused on Wall Street instead of on the masses of desperate homeowners. (Atlanta Journal-Constitution -- Business)
South Korea braces for crisis fallout Oct 18, 2008
With its banks facing potential trouble, its currency and stocks reeling and consumer debt on the rise, the country's woes have stirred memories of the regional economic crisis that struck it more than a decade ago ... South Korea, where consumer debt levels soared in 2003 after the government encouraged credit card use to spur the economy, has again been seeing rising levels of personal red ink. (The Star Online, Malaysia -- Business)
Signs of a deeper downturn in U.S. Oct 16, 2008
"You're beginning to see the deterioration of credit cards, consumer debt, home equity lines," said Stephen Wood, a strategist at Russell Investments. And a precipitous decline in consumer spending the primary engine of economic growth for the last decade could have dire consequences for the labor market, workers' salaries and American industry, which would in turn affect countries that are dependent on American demand for their goods. (International Herald Tribune)
Your say Is Black October a black hole for stocks? Oct 16, 2008
Problem was that the speculative and therefore artifical value of those trillions of dollars was now unrecoverable debt in the form of overpriced real estate, consumer debt and bad loans (sub-prime mortgages ring any bells. . (Sydney Morning Herald -- Business)
Michael West Fasten your seatbelts Oct 16, 2008
This time around, sadly, the level of consumer debt is far greater. More bad news in US. (Sydney Morning Herald -- Business)
Next week at Arlington Community Education Oct 16, 2008
We will cover consumer debt management, common investment mistakes, tax saving strategies, insurance, FICO scores and retirement savings options. The instructor is a certified personal financial advisor who has worked with individuals for 11 years. (Arlington Advocate, MA)
Our consumerism got old Oct 14, 2008
Consumer debt has soared to a staggering two and a half trillion dollars. More than a third of those carrying credit card balances of $10,000 or more earn less than $50,000 a year. (Albany Times Union)
Fighting the credit crisis, one-on-one Oct 14, 2008
As far as he knows, he was the first such firm in the nation to counsel people on mortgages in addition to traditional consumer debt like credit cards. Seventeen years later, that decision has helped Auriton boast a 60 percent market share among consumers seeking credit counseling in Minnesota. (Twin Cities Business Journal, MN)
Fed Role Is Sought in Interbank Lending Oct 14, 2008
These also are used to establish financing costs for corporate debt, home mortgages and other types of consumer debt. Following similar moves in Europe, the Bush administration is expected to announce Tuesday initiatives to shore up the financial system. (Wall Street Journal)
Look to Britain, where it's déjà vu Oct 14, 2008
But terrible levels of consumer debt, poor productivity and low prospects for exports, and the fiscally expensive demographics of an aging population, make Britain vulnerable to a further downturn. Mr. Brown must have his mind on another Labour Party prime minister, who three decades earlier had been forced to endure a similarly humiliating reversal. (Globe and Mail -- Business)
Our affluence puts us in abyss Oct 13, 2008
It s no wonder that consumer debt has soared to a staggering two and a half trillion dollars. Between mortgages, second mortgages and credit cards, many families, especially struggling wage earners, are barely getting by. (DeKalb Daily Chronicle, IL)
Angry about financial crisis Oct 13, 2008
Consumer debt has been building for 25 years. People have maxed out several credit cards. (Logan Herald Journal, UT)
Likely cure for borrowing is more debt Oct 12, 2008
As of July, consumer debt was growing about 25 percent faster than earnings. The banks that initially make these "revolving" loans have been able to bundle and sell them to others as "collateralized debt obligations," much the same way they did with mortgages. (Anchorage Daily News)
Credit junkies and consumerism Oct 11, 2008
It s no wonder that consumer debt has soared to a staggering $2. 5 trillion. (Atlanta Journal-Constitution)
The Russians get on message Oct 10, 2008
I thought is was strange that they thought that "most of her customers" would use the euro as a common currency, which means that they do NOT think that the Chinese would be most of her customers, even though they are right next door, they outnumber Europeans 2-to-1, and they have almost no consumer debt. So I thought that was a little strange; but it got spooky when they wrote the line, "the age of the dollar draws to a close", as my heart withered in fear and I suddenly mistrusted everyone... (Asia Times Online)
Europe's Schadenfreude: Time to Get Over It Oct 8, 2008
To suggest that Americans are responsible for U.K. lenders writing mortgages for more than the value of the homes being purchased or the U.K. consumer having far more consumer debt on his balance sheet than his U.S. counterpart is absurd. The longer Europe spends its time wallowing in its misplaced sense of superiority instead of dealing head on with the crisis (yes, of its own making) it threatens not only its banks, but also the entire idea of the European Monetary Union. (Human Events Online)
Bush and Cheney had a part in economic ruin Oct 6, 2008
Grant Uptain idgrantup wrote on Oct 5, 2008 4:03 PM:" A few facts: * U.S. official gold reserves are worth $261.5 billion[citation needed] (as of March 2008), foreign exchange reserves $63 billion[citation needed] and the Strategic Petroleum Reserve $67 billion (at a Market Price of $104/barrel with a $15/barrel discount for sour crude).[42] * The national debt equates to $30,400 per person U.S. population, or $60,100 per head of the U.S. working population,[43] as of February 2008. * In 2003... (Burley South Idaho Press, ID)
Personal Finance: Deflating your debt Oct 6, 2008
Consumer debt is the real thief of your financial freedom. It sucks up your money, leaving you less if any money to save. (WWLTV.com, LA)
Local lawmakers cast opposing votes Friday Oct 4, 2008
He also said the reasons at the root of the economic problem, such as Wall Street greed, consumer debt, and devious mortgage brokers, aren't tackled in the bill. Gallegly was flying back to California from Washington, D.C., and couldn't be reached for comment, a spokesman said. (Lompoc Record, CA)
GORGING ON CREDIT Oct 4, 2008
The average American now owes more than 16,635 in consumer debt, excluding mortgages, according to US News. A 2004 Federal Reserve Board survey found that a majority of credit card holders, 58 percent, don't pay their card balances every month. (New York Post -- Opinions)
Consumer bankruptcy filings up 29% in September Oct 4, 2008
The continued rise in personal bankruptcies reflects high consumer debt, made worse by energy costs and the weak housing market, trapping many households in homes they can neither afford nor sell, ABI Executive Director Samuel Gerdano said in a statement. Gerdano said the bankruptcy group expects consumer filings to grow to more than 1. (San Diego Union-Tribune -- Business)
The glum old USA Oct 3, 2008
As Bernie Sanders, an angry independent senator from Vermont, said in a passionate speech: "The middle class has really been under assault. Since President Bush has been in office, nearly 6 million Americans have slipped into poverty, median family income for working Americans has declined by more than $2000, more than 7 million Americans have lost their health insurance, over 4 million have lost their pensions, foreclosures are at an all-time high, total consumer debt has more than doubled, and... (Sydney Morning Herald -- World)
Arizona forecast: Economy may take years to recover, solar could be bright spot Sep 25, 2008
He pointed to negative signs in the national and state economies, including the credit crunch and finance-sector problems; a drop in sales of retail and durable goods; declining architectural billings and equipment sales; high consumer debt; energy and food inflation; and poor housing resales. Pollack expects more foreclosures with the housing market hitting bottom in 2009, but warned it will take multiple years to recover because of the glut of homes for sale. (Phoenix Business Journal, AZ)
Trapped in plastic Sep 25, 2008
Given the high levels of consumer debt, the Government should be taking these issues more seriously. send photos, videos ffs to 0424 SMS SMH (+61 424 767 764), or us. (Sydney Morning Herald -- Business)
First Priority loans to be sold by DebtX Sep 24, 2008
Another $16 million is categorized as commercial and industrial with another $18 million in consumer debt. Only the loans are being sold, not the properties, said a DebtX spokesman. (Tampa Bay Business Journal, FL)
Arizona economists check in on proposed bailout Sep 23, 2008
Credit cards and other consumer debt should be left out as should any loans that were sold to foreign banks, Sanders said. John Mathis, a global finance expert and professor at the Thunderbird School of Global Management in Glendale, said the financial markets need immediate assistance and Congress should not delay the project or use it as vehicle for more spending and policies. (Phoenix Business Journal, AZ)
Five Financial Truths Defy Wall Street Madness: John F. Wasik Sep 23, 2008
Has consumer debt become the latest flash point. As the economic reckoning continues, some 10 million Americans have filed for bankruptcy since 2000. (Bloomberg -- Columnists)
Australia Stocks Snap Two-Day Rally on Global Slowdown Concern; Banks Fall Sep 23, 2008
8 percent on concern consumer debt levels and falling employment will crimp growth, while crude oil surged 17 percent, its biggest gain ever. Commodity Stocks Advance. (Bloomberg -- Australia & New Zealand)
We don't need another Greenspan masterclass in bubble-blowing Sep 21, 2008
Even those of us who have been going on about the dangers of the house price spiral, the consumer debt mountain and the worship of 'financial engineering' are surprised by the sheer speed with which confidence in the most respected of financial institutions collapsed last week. As one battered banker said: 'There is no organisation that cannot potentially fail, because the whole world can bet against you. (guardian.co.uk)
Statement From Sears Holdings Following Fitch Ratings Announcement Sep 20, 2008
The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: our ability to offer merchandise and services that our customers want, including our proprietary brand products; our ability to successfully implement initiatives to improve inventory management and other capabilities; competitive conditions in the retail and related services industries; the impact of seasonal buying patterns, including seasonal fluctuations due to... (PR Newswire)
US at a turning point Sep 20, 2008
Credit conditions designed to keep the macro-economy and asset prices at peak levels filtered into balance sheet leverage, government debt and consumer debt levels well beyond prudence. This happened because credit easing does not and cannot substitute for earnings, wages or tax revenues. (Asia Times Online)
Kingfisher fears banker-belt downturn Sep 19, 2008
Kingfisher's French business - DIY retailer Castorama and trade specialist Brico depot - fared better, aided by much lower consumer debt and lower levels of home ownership, making the business less tied to the fortunes of the housing market. The French arm turned in retail profit up 6% at 128m on sales of 1. (guardian.co.uk)
Lehman and the end of the era of leverage Sep 16, 2008
Earlier this year, the American authorities allowed financial institutions to mark their books at fictitious values, in the hope that eventually prices for mortgages, consumer debt structures, corporate structured instruments and so forth would come back. If the authorities had forced the banks to mark to the existing market bid, all of them would have been insolvent. (Asia Times Online)
Asia in a concertina squeeze Sep 9, 2008
German growth has kept going longer than other European economies because of low consumer debt and export growth to OPEC economies, but Germany is now also slowing. Moreover, its policies of wage restraint and hyper-export competitiveness pose a menace rather than a help to the overall European economy. (Asia Times Online)
Europe halts global equities slide Sep 9, 2008
As optimism faded, a key U.S. subprime mortgage index nearly erased a 4 point gain made on Monday with rising consumer debt, delinquencies and unemployment weighing on sentiment. The top AAA slice of the ABX index ended slightly up on the day. (Globe and Mail -- Business)
Mastering Personal Finance 101: Tips for managing money while away at school Sep 6, 2008
Consumer debt is more expensive and should be carefully monitored. Carrying high, unpaid balances is one of the quickest ways to incur too much debt and fall behind in payments. (Orangeburg Times and Democrat, SC)
When the College Savings Plan Falls Short Sep 4, 2008
Consider paying off all high-interest consumer debt, such as credit-card balances. And make sure to max out your 401(k) and IRA. As a general rule, financial-aid officers don't expect parents to cash out their retirement accounts to pay for their kid's education. (SmartMoney)
McGuire: Know your rights about debt collection Sep 1, 2008
With the economy on the fritz and consumer debt at record-high levels, does it surprise you that debt collection complaints are on the rise. The Better Business Bureau logged 18,000 complaints in 2007, up. (Corvallis Gazette Times, OR)
Institutions get warning on canceling or reducing home equity lines of credit Aug 29, 2008
Compared to other consumer debt, a home equity line does appear cheaper. And people tell themselves it's a better way to borrow because the interest paid on this debt is tax deductible. (Boston Globe)
S.F. lender to students is clearing out Aug 28, 2008
It is one of many lenders that have stopped making certain types of student loans in recent months, in part because they can no longer sell them to investors who buy bonds backed by pools of mortgages or consumer debt. The timing was especially bad in this case. (San Francisco Chronicle -- Business)
Anxiety on the clock Aug 28, 2008
The deepening angst may reflect wage stagnation: "Real wages did not increase in the last four or five years for most Americans," Van Horn said, and consumer debt increased as many Americans, in effect, borrowed themselves a raise. Making matters worse are soaring gasoline prices, falling home values, and 401(k) retirement savings accounts caught in the stock market plunge. (NJ.com -- Times)
Medical Credit Card Concerns Aug 26, 2008
Converting Medical Debt to Consumer Debt. By using one of these credit cards, patients convert their medical debt, which doesn't typically show up on a credit report unless it goes to collection, into revolving consumer debt. (SmartMoney)
Trees Don't Grow To The Skies Aug 25, 2008
Falling home values, falling stock prices, less credit for mortgages and consumer debt, collapsing consumer confidence, a fall in employment for seven months in a row, a world full of problems (Russians in Georgia, Musharaff about to give up power in Pakistan). The correction in Asia still has a way to go. (Forbes)
Personal account: debt danger is felt by all Aug 24, 2008
Consumer debt amassed through mortgages, loans and credit cards increased by 7pc to 1,440bn - or 1. 4 trillion - during the last year; up from 1,350bn last summer. (Telegraph.co.uk)
Growth of personal debt means it outstrips UK's total GDP Aug 23, 2008
Growth of personal debt means it outstrips UK's total GDP - Scotsman. "Although there is no cause for panic, as personal debt is well covered by the UK housing stock, the figures clearly illustrate the continuing problem," said Gifford. (Scotsman)
Sudeshna Sen: Get out of debt trap! Aug 21, 2008
After all, the UK's household debt, according to the latest estimate from Ernst and Young is 109% of its GDP. Last set of consumer debt figures, from Grant Thornton, (around end of 2007) was GBP 1345 billion - I'm not even going to try and convert that ... Indian consumer debt problems are at a very simple stage - credit card defaults. (India Times)
