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Consumer savings are up, and credit card debt is down. But experts say the economic current is running against us, so even those who think they are swimming are probably just treading water...
We’ve replaced card debt with education debt. About that credit card debt: Although we’re paying it off and paying it on time, it seems like we’ve just traded it for student loan debt. Students and grads owe more than $1 trillion, and unless Congress takes action, the interest rate on new federal loans will double to 6.8% as of July 1. A recent Fed blog post says as many as 21% of loans could be delinquent. And unlike credit card debt, student loan debt is almost impossible to discharge...
Six months is the new three months. Still, it’s good that we’re managing to save money, right? When Bankrate asked people about their emergency funds, researchers found that a little over two-thirds of people have them. The problem is that the typical amount that’s in them is way too low. Before the recession, the typical rule of thumb was to save enough money to have three months’ worth of living expenses on hand. But the depth of the recession combined with stubbornly high unemployment meant that a lot of people were out of work for several months, if not years. Suddenly, a three-month cushion does about as much good as an inside-out umbrella in a rainstorm...
We’ve replaced card debt with education debt. About that credit card debt: Although we’re paying it off and paying it on time, it seems like we’ve just traded it for student loan debt. Students and grads owe more than $1 trillion, and unless Congress takes action, the interest rate on new federal loans will double to 6.8% as of July 1. A recent Fed blog post says as many as 21% of loans could be delinquent. And unlike credit card debt, student loan debt is almost impossible to discharge...
Six months is the new three months. Still, it’s good that we’re managing to save money, right? When Bankrate asked people about their emergency funds, researchers found that a little over two-thirds of people have them. The problem is that the typical amount that’s in them is way too low. Before the recession, the typical rule of thumb was to save enough money to have three months’ worth of living expenses on hand. But the depth of the recession combined with stubbornly high unemployment meant that a lot of people were out of work for several months, if not years. Suddenly, a three-month cushion does about as much good as an inside-out umbrella in a rainstorm...
