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Christopher Menkin
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Christopher "Kit" Menkin is of editor LeasingNews.org (http://www.leasingnews.org/), an internet trade publication for the finance/leasing industry. He has 41 years experience in the finance/leasing industry as well as being a founder of a commercial regional bank and serving on... More
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  • What $11.62 Trillion Worth Of Household Debt Looks Like 2 comments
    Aug 15, 2014 3:01 PM

    by Myles Udland, businessinsider.com

    (click to enlarge)

    Household debt fell to $11.62 trillion in the second quarter.

    The Federal Reserve Bank of New York just released its latest Household Debt and Credit report, which showed total house hold debt fell 0.2% from the first quarter to $11.62 trillion from $11.65 trillion.

    "A slight decline in real estate-related balances, consistent with broader housing market developments, contributed to a flat quarter for total outstanding household debt," said Donghoon Lee, senior economist at the New York Fed. "Meanwhile, we observe continued strength in the auto loan market with the largest volume of originations since 2006."

    Some of the report's highlights include:

    • Mortgage debt fell $69 billion to $8.10 trillion. Mortgage delinquency rates are also falling, with 3.4% of mortgages more than 90 days delinquent, down from 3.7% in the previous quarter.
    • Student loan debt balances increased by $7 billion to $1.12 trillion. 10.9% of outstanding student loan debt is more than 90 days delinquent or in default, down from 11% in the first quarter.
    • Auto loan debt increased by $30 billion to $101 billion, the highest volume of originations since the third quarter of 2006. Delinquent auto debt was unchanged from the prior quarter at 3.3%
    • Home equity line of credit, or HELOC, balances dropped by $5 billion to $521 billion.
    • Total delinquent debt totaled $724 billion, or 6.2% of outstanding household held, down from 6.6% in the first quarter.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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  • Westcoaster
    , contributor
    Comments (676) | Send Message
     
    Wow,

     

    "Student loan debt balances increased by $7 billion to $1.12 trillion. 10.9% of outstanding student loan debt is more than 90 days delinquent or in default, down from 11% in the first quarter.

     

    So $122 billion in student loans are delinquent.

     

    Isn't this debt both guaranteed by the Feds but the actual borrowers can't release it through bankruptcy.

     

    I'm not an attorney but this may go down as the biggest loan scam on people ever....just my opinion.

     

    Loaning money to 18 year olds, then telling them they can't get out of it may really hold the millennials back. What responsibility does a college have when they basically suck a minor into a liberal arts degree that ends up in a $8 an hour job market? Full time work at $8 bucks an hour puts one below the federal poverty line.

     

    I wonder how this ends????
    19 Aug 2014, 01:12 PM Reply Like
  • Christopher Menkin
    , contributor
    Comments (90) | Send Message
     
    Author’s reply » the medical ones take 20 years and longer to pay back.
    Should the rates be lower, of course, but then who makes
    the loans?

     

    As important, the old saying prevails: Let the borrower beware.
    20 Aug 2014, 12:04 PM Reply Like
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