If you want to get an idea of how much of a true unsubstantiated bubble that has formed in student loan lending, read this article in how much school tuition cost has gone up over the last 30 years but specifically in the last 10 years. its absurd, and the explanation doesnt pass the sniff test to me, but just saying....
To give you an idea of what im saying. Mortgage deliquencies are down year over year. On the other hand, credit cards, autos and school loans deliquencies are up which require little to no income documentation. Its not too hard to identify why the rates of deliquency are higher to outlandishly high in some instances relating to cards, school loans and autos. why allow a borrower to 'state' income at all. As a bank, fintech, or alternative lender, seems like a very simple fix, and it would allow you to drop the high deliquency rates and likely net out the same profit on those products year in and year out.
Mortgage deliquency rates, which is a very reliable indicator of the overall health of the consumer have dropped from 2018-2019, which is a good sign on a broad scale. Obviously, this is happening because of the extensive amount of income documentation required nowadays to get a mortgage as oppose to auto loans and school loans which require no documentation and whose default rates range from 18-25 percent. crazy.
We talk about this a lot. Media outlets will say wages are up, but in reality there up like .6 percent on the year, which is essentially flat for the herd, yet year over year the prices of autos continue to rise aggressively. As of end of 2019, the average new car sales price was close to 35k and the average SUV was close to 37k. How on earth can autos and there prices outpace inflation year to year so aggressively and still have banks lending on them. Not to mention, average...
If this actually comes to fruition, it would be something very beneficial for consumers, which is long overdue. Sadly, its likely posturing.
If you would like an idea of where interest rates are projected to head into 2020, the fed outlines some details here. knowledge is power and allows you to plan in advance for future financing. The Federal Reserve rate hikes impact every type of credit, not just one particular type.
If your in control of your finances, and are leveraging properly then your taking advantage of 0 percent balance transfer options so you can likely maximize rewards and eliminate interest in money borrowed. here is a list
this article is so true. Cant wait until this industry its, 'finance managers', finally gets regulated. Not sure how the auto lending industry was the only one that came out of the Financial crisis of 07-08 with no additional regulation to speak of, but it will eventually because more and more of this is occurring at beyond a predatory perspective. Use our system to clean your report and then get your auto financing lined up before you go into the dealer, which takes out the opportunity for them to play the games.
Please read attached link. If you have collections, know what the collection companies can say, when they can call, and most importantly what they cant say or do, etc. Dont let them play fast and loose assuming you dont know the laws. Knowledge is power, it levels the playing field and closes the gap, thereby inching the leverage in your favor.