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7 million US auto loans 90 days in arrears


Neighbor

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Hi all the fed has reached a faulty conclusion; they state that not all have benefitted from the better economy citing the record number of loans in arrears for autos. Stating they need to follow this trend. Well whoppee. Those that buy into the advertising of easy access to way too expensive autos and trucks, along with the loan writer seeking to meet their quoter and get their spiff, are all ignoring the principles precepts and commands of God regarding  money, real needs and lending and borrowing. But that  is not to be considered in the calculations that will affect every person regardless of their own use of money.

The fed's conclusion is in error not in the so called math, but is in evidently not knowing and certainly in not promoting the guidance from God.

Record 7 million auto loans delinquent by 90 days

Feb 13, 2019, 4:17pm ET

by Justin King

Young borrowers represent an increasing proportion of loans in serious delinquency.

The number of car owners who are at least 90 days late on their auto loans has reached a record seven million borrowers, despite seemingly strong economic and jobs indicators in the US.

The boom in car sales has been associated with strong increase in new auto loans, with $584 billion in new loans and leases appearing on credit reports last year -- the highest level in the nearly two decades of record keeping, according to the Federal Reserve Bank of New York.

The growth was primarily driven by loans handed to the most creditworthy individuals. Unsurprisingly, however, previous increases in 'subprime' lending to borrowers with poor credit scores has created a mix with a larger number of borrowers at high risk of delinquency.

"Borrowers with credit scores less than 620 saw their transitions into delinquency exceed 8 percent in the fourth quarter (annualized as a moving sum), a development that is surprising during a strong economy and labor market," the NY Fed wrote in a blog post.

The transition into serious delinquency appeared to be worst among buyers in the 18-29 age group, hinting at economic troubles for younger citizens.

The report notes that there were more than a million more troubled borrowers last year than at the end of 2010, when the rate of delinquency peaked amid the recession.

"The substantial and growing number of distressed borrowers suggests that not all Americans have benefited from the strong labor market and warrants continued monitoring and analysis of this sector," the NY Fed concluded.

 

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So many Americans live by the FICO score as their standard of personal worthiness instead of the Bible's principles for handing the demands of money use instead of their income stream. They buy into a debt rating as their standard instead  of reading studying and praying about the will of God expressed quite directly in His word the Bible that it is a crisis. 

It is a personal crisis for many, a concern for many more, and a heavy burden for an entire nation  that does affect the world. Yet few of us, Christian or not ,take the study of finances as a real concern;  the solutions and guides for which are in the Bible written by men as called by their inspiration from God  over many hundreds of years.

Fully 25% of the Bible is about money and finances. 31 Proverbs deal with it. 

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28 minutes ago, Neighbor said:

So many Americans live by the FICO score as their standard of personal worthiness instead of the Bible's principles for handing the demands of money use instead of their income stream. They buy into a debt rating as their standard instead  of reading studying and praying about the will of God expressed quite directly in His word the Bible that it is a crisis. 

It is a personal crisis for many, a concern for many more, and a heavy burden for an entire nation  that does affect the world. Yet few of us, Christian or not ,take the study of finances as a real concern;  the solutions and guides for which are in the Bible written by men as called by their inspiration from God  over many hundreds of years.

Fully 25% of the Bible is about money and finances. 31 Proverbs deal with it. 

interesting....   last time I checked my score it was 813.   I guess largely because we have no debt except for a single credit card that is auto payed at the end of each month.   Car payments are kind of scary; it's been so long since we had one.

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And yes I am taking the Dave Ramsey course on finances. At 75 I kinda think I should pay attention to my financial planning epecially for my future years( Just a little humor to highlight a serious issue not paid much divinely guided attention to by many of individuals nor couples).

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10 minutes ago, other one said:

last time I checked my score it was 813.

I had thought that  to be pretty cool too! Until Dave Ramsey burst  my bubble in lesson two; stating that simply  means I always play the lenders game the way they what me to play it to their best advantage. Never paying off early, never missing a payment, just making that home mortgage payment year after year as example.

The beginning of this class is funny in presentation  yet serious in context and Biblical principles.

ps- I am just now starting to read a proverb a day with the intent of doing so  on a continuing basis- we shall see, good intentions and all ya know-

 

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5 minutes ago, Neighbor said:

And yes I am taking the Dave Ramsey course on finances. At 75 I kinda think I should pay attention to my financial planning epecially for my future years( Just a little humor to highlight a serious issue not paid much divinely guided attention to by many of individuals nor couples).

What Dave Ramsey teaches is exactly what my dad and my wife's dad taught us both as we were growing up.

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6 minutes ago, Neighbor said:

I had thought that  to be pretty cool too! Until Dave Ramsey burst  my bubble in lesson two; stating that simply  means I always play the lenders game the way they what me to play it to their best advantage. Never paying off early, never missing a payment, just making that home mortgage payment year after year.

 

instead of putting money into a 401k over what I was putting into a retirement pension I paid our house off 19 years early...    still ended up with a bit of 401k money besides the retirement account when I finally retired.

We do play the game with them on the credit card except we always pay it off every month....    got about $600 cash back in the last 12  months but we had some pretty hefty home expenses....   air conditioner had to be completely replaced and head gaskets on the Winnebago was a good sized bill....    thank the Lord for all the help he's given us over the years not to have to borrow and pay interest on that.     We have built up a good sized emergency fund, but I must say the Lord seems to replenish it when we have needed to use it.

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Yep, well no, not in my case. I was taught to be responsible for sure, always pay to the last penny, but I was also taught  to leverage and to build up my credit rating. which in the long run is a bit of a serious enticement and entrapment.

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3 minutes ago, Neighbor said:

Yep, well no, not in my case. I was taught to be responsible for sure, always pay to the last penny, but I was also taught  to leverage and to build up my credit rating. which in the long run is a bit of a serious enticement and entrapment.

I agree and with some people they can't help getting into the entrapment.   People tend to want to live above their means....   was a struggle for me 50 years ago. Caused me to have to leave a career that was very personally rewarding but a financial disaster for a newly married couple.

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3 minutes ago, other one said:

We do play the game with them on the credit card except we always pay it off every month....    got about $600 cash back in the last 12  months

Yep, same here, yet again Ramsey claims paying cash saves more  then the enticements to use any credit card does, for there is a real physical affect upon the brain when cash is used compared to any credit or debit or smart phone for the transfer of assets. He may be right I did it for a year then bought into the easy record keeping that was an enticement by AMX and others, that easy summary at the end of the tax year. With cash I do think more, I think how much more cash do I have on me at this moment, instead of I got it covered at the end of the month  I'll just tally it up then.

Anyway I hope to continue with the process and experiment. I did cut up my sLowes card. And plan to get a debit card which I have always refused in the past. I am going  to get out of my easy auto pay arrangements for utilities and pay each month  with a hand written check to see do I pay closer attention to th euse of electricity as example, or not. I am fortunate enough not to have great concern over such things, but I also think I am taking the at good fortune way too casually. I do need to be more aware of what God has tended to me for care.

Ot is some early fun anyway- I will soon see, if I am able to be better at this or not.

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