Tag Archives: Default

Consumers Prepare for Consequences of Possible U.S. Government Debt Default

Savings Accounts and Money Market Rates provided by 28 July 2011 The August 2 deadline for the U.S. federal debt crisis, when the government must pay its debts or default, is fast approaching. American consumers are monitoring the process and preparing for potential effects on their personal finances, according to the Boston Globe.

Unlike the national financial crisis of 2008, the major markets on Wall Street have not shown extreme strain in the face of this issue. However, the Globe reports that this is not necessarily a sign that the new crisis is less serious, noting that stock prices fell noticeably yesterday, July 27.

The likely consequences of an August 2 default will be damage to the retirement accounts and investments of American consumers due to the devaluation of U.S. Read the full post

Relief in Sight – Default Rates Projected to Fall

Lenders have seen the largest number of credit card defaults since 1983 and increases in the triple-digits of charge-offs since 2007. But according to regulatory filings by the major credit card lenders, defaults and delinquencies are falling and could be lower than estimated in the second half of the year; the first sign that default rates have reached their peak. According to Bernstein Research, the average 30-day delinquency rate decreased in May to 1.57% from 1.71% the month before. It was the second month in a row that 30-day delinquency rates declined. And with American Express predicting improvement in the second half of the year, there may be a glimmer of hope about consumer credit.

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