Urban Institute: 24% of Americans are behind on debt amid Fed rate hikes
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The Urban Institute reported that 24% of Americans with a credit report are behind on debt, with a median collections balance of $2,913. This figure is higher in predominantly Black and brown communities, where 30% are behind. Furthermore, consumers' credit card balances have reached a record $1.29 trillion, an increase of nearly 70% from five years ago, according to figures from the Federal Reserve Bank of New York.
From newsone.com
Why it matters
The report indicates that rising consumer debt and the increasing cost of living are making it difficult for Americans to make payments on loans for auto, credit cards, and student loans. This trend occurs while the Federal Reserve Bank attempts to curb inflation by raising interest rates.
From newsone.com
Who's involved
- Federal Reserve BankMonitors American financial health and uses monetary policy to influence economic conditions.
- AmericanThe population subject to the debt analysis and cost-of-living pressures.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Bank of AmericaSpeculative
Rising consumer debt and Federal Reserve Bank rate hikes could increase credit risk and loan defaults for Bank of America.
- Money Management InternationalSpeculative
The cost-of-living crisis and increased consumer debt might drive demand for Money Management International's debt counseling services.
- Jeremiah ProgramSpeculative
Increased consumer debt could drive higher demand for support services for single mothers provided by Jeremiah Program.
- MedicareSpeculative
High inflation and consumer debt may strain Medicare's financial stability by increasing medical debt.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Rising consumer debt may increase credit risk for Bank of AmericaRising consumer debt may increase credit risk for Bank of AmericaLikely
- Increased consumer debt may drive demand for Money Management InternationalIncreased consumer debt and cost-of-living crisis may boost demand for financial counseling.Likely
- Rising medical debt may strain Medicare's financial stabilityRising medical debt may strain Medicare's financial stabilityPossible
Keep exploring
The entities involved
-
American
automobile manufactured 1902-1903
-
Federal Reserve Bank
regional bank of the U.S. Federal Reserve System