RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Bank Card Defaults Drop, Mortgage Defaults Tick Up - What Does it Mean?

September 21, 2017 12:47 am

In some good news for the economic outlook, the bank card default rate recently experienced its biggest drop in 12 months this past July, down 18 basis points to .86 percent, according to the S&P Dow Jones Indices and Experian data. Meanwhile, auto loan defaults increased by four basis points, and the first mortgage default rate increased two basis points from June.

However, it’s important to look at the big picture. Though the National bank card default rate experienced its biggest drop in 12 months, it is still high. The bank card default rate set a recent low at 2.49 percent in December 2015. Since then, it moved irregularly upward before the July drop; it is now 3.31 percent. The composite, auto, and first mortgage default series are all close to their levels in July 2016.     

“Default rates for autos and first mortgage loans are at their lowest points in the last ten years, while bank card defaults remain modest,” explains David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “Consumers’ use of credit is growing and the level of consumer credit outstanding is at an all-time high. In the year ending June 2017, consumer credit outstanding rose 5.7 percent, outpacing most spending categories across the economy. However, retail sales excluding autos as well as auto sales are down slightly since April, while home sales are little changed in recent months.

“While total consumer credit is at an all-time high, revolving credit – principally bank card loans – is close to the same level as mid-2008 early in the recession and financial crisis. At that time, revolving credit accounted for 38.5 percent of credit balances compared to 26.5 percent today. The revolving credit share of the total has declined steadily since 2008. The share of non-revolving credit rose and total non-revolving climbed from 61.5 percent to 73.5 percent of total consumer credit usage. The largest components of non-revolving credit are auto loans and student loans. Auto loans currently are about 40 percent of non-revolving credit. Student loans are the largest factor in the growth of non-revolving credit since 2008. Currently, they represent about 51 percent of non-revolving credit outstanding and 37.6 percent of total consumer credit outstanding.”

So while the economy continues to show gradual improvement on a macro level, debt continues to be a blight in terms of full recovery. Meet with your financial advisor to review your personal credit and debt scenario to see how you may be able to make improvements to the overall picture.

Published with permission from RISMedia.


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Easy Ways to Make Better Food Choices

September 21, 2017 12:47 am

(Family Features)--Maintaining a healthy diet can be easier than you think if you make your eating habits a priority and know how to make smart food choices.

For the best results, choose foods from all five major food groups with help from these tips:

Fruits and vegetables. Fruits and vegetables are naturally low in fat and contain necessary fiber, vitamins and minerals. Rather than serving fruits with cream cheese or sugary sauces, opt for nut butters or organic honey, and toss raw, steamed, boiled or baked vegetables in olive oil, salt and pepper instead of buttery sauces.

Protein. Select low-fat, lean cuts of meat and season them with herbs, spices and low-sodium marinades. Baking, broiling, grilling and roasting are the healthiest preparation methods. Try swapping ground beef for a lean or extra-lean cut, or opt for ground chicken or turkey instead. Non-meat protein options such as dry beans, peas and lentils can even be swapped for meat in recipes such as lasagna or chili.

Dairy. Choose skim or non-dairy milk, like soy, rice or almond milk, and use low-fat or part-skim cheeses in recipes. Nonfat or Greek yogurt can replace sour cream in many recipes and options like sherbet and soft-serve frozen yogurt are lower in fat than ice cream.

Grains. Choose products that list whole grains as the first ingredient, as they are low in fat and high in fiber. Some easy swaps include whole-grain flour, pasta and rice, as well as bypassing doughnuts and pastries for English muffins or bagels and opting for unsalted pretzels instead of potato chips.

Fats, oils and sweets. Too many high-fat foods can add excess calories to your diet, which can lead to weight gain and obesity, or increase your risk for certain health issues. However, a small amount of heart-healthy fat is actually good for you. When it comes to sweets, fig bars and gingersnaps make for healthy alternatives to cookies. Also beware of calorie-laden condiments and opt for nonfat and light mayonnaise and salad dressings instead.

Source: Family Features, Nice!

Published with permission from RISMedia.


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