Banks are preparing for more loans to go bad as interest rates rise

Aug 8, 2022
They're setting aside more cash to cover delinquencies and taking closer looks at prospective borrowers.
Consumers are saving less and using credit cards more as prices and interest rates rise. Above, a person on the floor of the New York Stock Exchange watches TV screens on July 27, after the Federal Reserve raised the benchmark interest rate by three-quarters of a percentage point.
Timothy A. Clary/AFP via Getty Images
Last year's federal relief payments contributed to American households' ability to pay down their credit card obligations in the second quarter.
Violeta Stoimenova via Getty Images

As unemployment skyrockets, so do mortgage loan delinquencies

May 21, 2020
April saw the biggest one-month jump in U.S. home loan delinquencies ever.
More than 3.8 million mortgage holders, 7.3% of all home loans, have already entered into forbearance plans as of April 30.
Frederic J. Brown/AFP via Getty Images

Why it matters when you’re 90 days late on a payment

Feb 12, 2020
It can be indication to banks that you're unlikely to pay at all.
fizkes/Getty Images

Credit card delinquency rates have been rising — especially for young people

May 17, 2019
Oh, and the interest on that outstanding debt? It's getting more expensive.

With mortgage delinquencies at a low, can lenders afford to loosen up a bit?

May 14, 2019
Consumer advocates say it's time to loosen restrictions imposed after the housing collapse.
A foreclosure sign.
Joe Raedle/Getty Images

As loans come due, farmers feel the financial squeeze

Mar 25, 2019
Some farmers are “quietly exiting” because they can’t make a profit.
Farmer Tom Giessel stands in front of a corn pile near Larned, Kansas. The corn was grown in 2017 and because of a market glut, it still hasn’t sold.
Peggy Lowe/KCUR

For public good, not for profit.

Household debt is at an all-time high as holiday spending season arrives

Nov 20, 2018
The total debt carried by Americans has reached yet another record high — $13.5 trillion in the last quarter, according to the Federal Reserve Bank of New York. Household debt is now $837 billion higher than its previous peak in 2008. What’s behind rising household debt, and is it something to be concerned about, especially […]

Rising credit card delinquency seen as tied to climbing interest rates

May 22, 2018
U.S. household debt hit a record $13.2 trillion in the first quarter of 2018, but Americans seem to be handling it okay. Consumer debt levels are stabilizing, according to The New York Fed’s quarterly household debt report. But rising interest rates seem to be squeezing household finances in at least one area: credit card debt. […]

More credit cards going to buyers with imperfect credit

Aug 11, 2016
Companies are issuing cards more freely, so why are delinquency rates down?
More people with poor credit are getting credit cards, according to a new report.
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