Newsmax.com reported today (November 21, 2007) as follows:
"...The American Bankruptcy Institute reported that personal bankruptcies increased 40 percent in the first half of 2007 from a year earlier..."
Sounds horrible, doesn't it? The economy is falling apart or at least that is what it seems like from this statement but in the same article, it is reported:
"...Data compiled by the FDIC show credit card payments more than 30 days late fell to $7.04 billion in the second quarter from $8.37 billion two years earlier..."
The average household (and there are about 100 million households in the U.S.) holds over $9,000 in credit card balances. If only $7 billion is 30 days past due, then that averages to about $70 per household - and that is less than 1% of the average of $9,000 - if I am reading these numbers right.
The numbers sound huge (billions) but put in perspective the default rates are not so bad. Oh yes, much higher than a few years ago when everyone enjoyed increased home equity and very low interest rates. But the credit card companies, banks and mortgage brokers all have bad debt reserves for some of this potentially bad debt. Look beyond the hype.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.