Households Debt and Predatory Lending

URL of the actual page: https://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932008#Subprime_mortgage_bubble
Title of the Page: Financial crisis of 2007–2008
Editor, Date: Wikipedia
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The financial crisis of 2007–2008, also known as the global financial crisis (GFC), was a severe worldwide economic crisis. Prior to the COVID-19 recession, it was considered by many economists to have been the most serious financial crisis since the Great Depression. Excessive risk-taking by banks, combined with the bursting of the United States housing bubble, caused the values of mortgage-backed securities tied to American real estate to plummet and financial institutions to suffer significant damage globally, culminating in the bankruptcy of Lehman Brothers on September 15, 2008 and a subsequent international banking crisis. Massive bail-outs of financial institutions and other palliative monetary and fiscal policies were employed to prevent a collapse of the global financial system. The crisis sparked a global recession that resulted in increases in unemployment and suicide, decreases in fertility and general trust in institutions, and ultimately contributed to the Eurozone crisis.

In 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted in the US following the crisis to "promote the financial stability of the United States". The Basel III capital and liquidity standards were adopted by countries around the world.

URL of the actual page: https://www.debt.org/credit/predatory-lending/
Title of the Page: What is Predatory Lending?
Editor, Date: Debt.org
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Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower. It is also any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative or unscrupulous actions for a loan that a borrower doesn’t need, doesn’t want or can’t afford.

URL of the actual page: https://twitter.com/herodote63/status/1155039442996027392?ref_src=twsrc%5Etfw
Title of the Page: Untitled
Editor, Date: herodote63, 27 juil. 2019
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URL of the actual page: https://www.youtube.com/watch?v=6p6y6gGpilc
Title of the Page: Christine Lagarde shares IMF's review of US economy - 06/06/2019
Editor, Date: CNBC Television
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IMF Managing Director Christine Lagarde presents the International Monetary Fund's views on the economic outlook for the United States.

URL of the actual page: https://www.vystarcu.org/Financial-Tools/Advice-Planning/Loan-Tools/Predatory-Lending
Title of the Page: Predatory Lending
Editor, Date: VyStar Credit Union
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Beware of Fast Cash
Like local car dealerships and personal injury law firms, short-term and payday lenders tend to have the most annoying commercials on TV. They’re often tacky and annoying, and tend to air during daytime talk shows or very late at night. Their promises of “fast cash!”, “guaranteed approval!” and no “credit check required!” are enough to make you change the channel—and yet, if you ever find yourself in a situation where you need to get your hands on some extra money fast, those commercials might start making sense to you. If your car breaks down or you are short for this month’s rent payment and you have no emergency funds set aside, going to a payday lender or a pawnbroker may seem like your only options. However, the loans that they offer can be outrageously expensive and targeted at people who are clearly in a tight spot to begin with, which makes those businesses prime examples of predatory lending.

Before jumping at that fast-cash offer, take a moment to educate yourself about predatory lending. Then breathe, understand that you have alternatives, and make an action plan.

URL of the actual page: https://www.gobankingrates.com/banking/banks/trump-bank-deregulation-impact/
Title of the Page: Trump Is Deregulating Banks — Here’s What That Means for You
Editor, Date: GO Banking Rates, February 13, 2019
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Does more freedom for banks help — or hurt — Americans?


During his 2016 campaign, President Donald Trump promised to roll back the Dodd-Frank Wall Street Reform and Consumer Protection Act, which stiffened the regulations placed on banks in the aftermath of the financial crisis. Trump managed to get movement on that portion of his platform in 2018, signing into law a bill that loosened or got rid of some key regulations.

However, the deregulation of banks might raise red flags for many Americans, particularly those who remember the meltdown of financial markets that prompted the Dodd-Frank Act in the first place. Perhaps more importantly, plenty of Americans might be wondering what bank deregulation means for them and the U.S. economy, a decade after the Great Recession.

URL of the actual page: https://www.cnbc.com/2019/07/05/84percent-of-millennials-and-gen-z-failed-this-retirement-quiz.html
Title of the Page: 84 percent of millennials and Gen Z failed this retirement quiz. See how you compare
Editor, Date: CNBC, Make It, Fri, Jul 5 2019
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The vast majority of workers under the age of 34 lack basic knowledge about their 401(k) retirement plans, according to the new Financial Wellness in the Workplace Study from Fisher Investments 401(k) Solutions.

The report surveyed 1,000 employees at companies with between five and 350 workers on their retirement knowledge and preparedness, and found that 84 percent of millennials and Gen Zers failed a test on the basics of 401(k) plans. Though the younger generations performed worse than their older colleagues, Gen X and Baby Boomers didn’t do much better.

Less than a quarter of respondents could correctly identify what a mutual fund is, and 70 percent didn’t know that there is an age at which they don’t have to pay a fee to withdraw money from their accounts. Most respondents also said they didn’t know how much they needed to save for retirement.

This is far from the first report to highlight that U.S. employees are not confident about their retirement plans, and 25 percent of Americans have no retirement savings at all.

URL of the actual page: https://www.cnbc.com/2019/07/25/how-a-millennial-woman-lives-on-88000-dollars-a-year-in-the-bay-area.html
Title of the Page: How this 27-year-old earning 88,000 Dollar in the Bay Area is tackling her 33,700 Dollars in debt
Editor, Date: CNBC, make it Jul 25 2019
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This story is part of CNBC Make It’s Millennial Money series, which profiles people across the U.S. and details how they earn, spend and save their money.

Christine Hopkins wasn’t always responsible with money.

The 27-year-old, who earns 88,000 Dollar a year as a marketing manager in the Bay Area, spent several years charging flights, clothes and nights out to her credit card without having the means to pay it off. “I always just assumed that credit cards were there to buy things you wanted and then you figure out how to pay for them later,” she tells CNBC Make It.

But in 2018, she began to feel trapped by her debt. “No matter how much more in salary I was making, I was still living paycheck to paycheck, which wasn’t making sense to me,” she says. “I thought, ‘Where is all of my money going? Why is this happening to me?’”

On top of all the debt, Hopkins had almost nothing in savings, and she started to worry about what she would do if she lost her job because the cost of living is so high in the Bay Area.

URL of the actual page: https://www.cnbc.com/2019/05/24/25-percent-of-us-adults-have-no-retirement-savings-fed-finds.html
Title of the Page: 25 percent of US adults have no retirement savings
Editor, Date: CNBC, make it May 24 2019
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A new report from the Federal Reserve paints a bleak picture of America’s retirement savings.

Almost a quarter of adults in the U.S. have no retirement savings or pension at all, according to the Fed’s 2018 Report on the Economic Well-Being of U.S. Households, and just 36 percent percent of non-retired adults think that their retirement saving is on track. The report also found that a third of middle-class adults can’t afford to cover a 400 Dollar emergency.

Of non-retired adults with savings, 54 percent say they have money in a 401(k) or 403(b) plan, 33 percent have an individual retirement account and 22 percent have a pension.

Retirement preparedness, of course, varies by age. Young workers aged 18 to 29 are less likely to have savings, with 42 percent saying they have nothing stashed away, while 17 percent of those aged 45 to 59 say the same thing.

URL of the actual page: https://www.cnbc.com/2018/10/08/many-americans-think-saving-for-retirement-can-wait-experts-disagree.html
Title of the Page: A shocking number of Americans think saving for retirement ‘can wait’—here’s why money experts disagree
Editor, Date: CNBC, make it, Oct 9 2018
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Nearly one in three Americans saved for retirement. Experts generally recommend trying to accumulate , which gets more and more difficult the longer you put off getting started. And still, an alarming number of adults think saving for retirement can wait.

Student-loan provider Navient conducted a national Money Under 35 study of more than 3,000 adults, aged 22 to 35. It reports that only three in 10 respondents are saving for retirement, and that almost four in 10 — including 45 percent of men and 30 percent of women, and even 35 percent of those who are 34 or 35 years old — believe they can safely put it off.

That’s because they “tend to prioritize short-term goals like , , or ,” the study says.

URL of the actual page: https://www.cnbc.com/2019/06/26/how-much-americans-have-saved-for-retirement.html
Title of the Page: Here’s how much Americans have saved for retirement
Editor, Date: CNBC, make it, Jun 26 2019
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Americans are still struggling to save enough for the future.

A worrisome 22 percent have less than 5,000 Dollar in savings earmarked for retirement, according to new data from Northwestern Mutual’s 2019 Planning and Progress Study. Another 5 percent have between 5,000 Dollar and 24,999 Dollar put away and only 16 percent have saved 200,000 Dollar or more.

Additionally, 46 percent of respondents say they don’t know how much they have saved for retirement.

The numbers are just as bleak when divided by generation. Although many baby boomers, defined here as those ages 55 to 73, are nearing retirement, 17 percent have less than 5,000 Dollar in retirement savings.

Many Americans are aware of their lack of savings, yet few are doing anything about it. On average, survey respondents say there’s a 45 percent chance they’ll outlive their savings, yet 41 percent haven’t taken any actions to address the issue.

That’s startling, Emily Holbrook, senior director of planning at Northwestern Mutual, tells CNBC Make It. “People absolutely should be taking steps,” she says. “They need to become educated, they need to meet with a financial advisor and discuss their options.”

URL of the actual page: https://twitter.com/herodote63/status/1155039442996027392
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Editor, Date: Herodote63, 27 juil. 2019
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Editor, Date: Herodote63, 27 juil. 2019
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URL of the actual page: https://www.cnbc.com/2019/06/27/how-many-americans-have-nothing-saved-for-retirement.html
Title of the Page: Here’s how many Americans have nothing saved for retirement
Editor, Date: CNBC, make it, Jun 28 2019
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Americans as a whole aren’t saving nearly enough for retirement. In fact, an alarming number of people have absolutely nothing put away for their golden years.

That’s according to new data from Northwestern Mutual’s 2019 Planning and Progress Study, which found that 15 percent of Americans have no retirement savings at all.

Younger generations who have had limited time to save aren’t skewing the numbers either. For both Gen X-ers (defined here as ages 39 to 54) and baby boomers (defined as ages 55 to 73), 14 percent of survey respondents in each group say they have nothing saved for retirement.

Just 17 percent of respondents say they have between 1 Dollar and 74,999 Dollar earmarked for retirement, which falls short of the 1 million Dollar experts typically recommend.

URL of the actual page: https://www.cnbc.com/2019/03/12/most-americans-arent-saving-enough-to-retire-by-age-65.html
Title of the Page: How much money Americans are saving for retirement—and how much you need if you want to retire by 65
Editor, Date: CNBC, make it, Mar 13 2019
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If you’re hoping to retire by 60, like most young people are, or even a little later in your mid-60s, you might need to up your savings.

“Most American workers aren’t saving at levels that will allow them to retire fully at age 65 at their current standard of living,” researchers at the Stanford Center on Longevity conclude in a 2018 report, “Seeing Our Way to Financial Security in the Age of Longevity.”

After considering factors such as the rate of return on investments, salary growth, life expectancy and Social Security benefits, the researchers project that, if you want to retire at age 65 and maintain your standard of living, you need to put 10 to 17 percent of your current income into a retirement account. And that’s if you start saving as early as age 25.

If you wait until 35 to start, you have to save 15 to 20 percent of your income to retire by 65. Keep in mind that this amount does not include your short-term savings, so it would be on top of any money you’re putting in an emergency fund, for example.

Most employees aren’t saving nearly that much, according to the report: “Based on our estimation, families age 25-64 are currently only saving a median of about 6 to 8 percent of income toward retirement.”

Here’s the Center’s breakdown of median contribution as a percent of income in work-based retirement plans for families at different ages.