Why banks are setting aside cash to cover bad loans

Oct 18, 2022
When the economy starts looking scary, bank executives have to make a judgment call about their outstanding loans.
Banks are setting aside extra money in case of a recession, which could lead to loan defaults. Think of it like hoarding acorns for winter.
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"Buy now, pay later" can come with a cost, federal consumer watchdog says

Sep 19, 2022
The CFPB says delinquencies and late fees add up and recommends tighter regulation of loans in line with the credit card industry.
Buy now, pay later services can be risky for consumers, who aren't always well-informed of the penalties for missed payments.
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Why buy now, pay later might not be such a good idea

Sep 12, 2022
These short-term credit companies are running into questions about their customers' ability to pay them back. Regulators are paying more attention.
"You buy more stuff when you're doing buy now, pay later because it feels like you're spending less money," says Vox reporter Emily Stewart.
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Why is college so expensive to begin with?

Aug 24, 2022
In the past fifty years, tuition at both public and private schools has more than tripled, even after accounting for inflation.
Biden recently announced a student loan forgiveness plan, which will forgive up to a certain amount of loans for people who make under $125,000.
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Black, Hispanic and poorer families pay the price for being "unbanked"

Aug 22, 2022
Low-income, Black, and Hispanic Americans are much more likely to lack a bank account or use alternative financial institutions like payday lenders.
A new report from the Joint Economic Committee in Congress finds that Black, Hispanic, and poorer Americans are much more likely to be considered "unbanked" or "underbanked".
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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.
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As consumer borrowing picks up, banks keep a wary eye on the possibility of more loan defaults

May 10, 2022
It isn't happening now, but that could change in the economy starts trending down.
The rise of consumer credit has banks on the lookout for whether or not consumers can pay their debt.
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Commercial lending could rebound this year

Jan 14, 2022
Business lending has been sluggish throughout the pandemic. But there are signs that commercial lending is starting to pick up again.
Some businesses are currently taking advantage of low interest rates for loans.
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Why do people think it's harder to get a loan now than a year ago?

Nov 9, 2021
A New York Federal Reserve survey finds that peoples' perceptions about loans have shifted, even though many are in relatively good shape compared to last year.
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