.. I had the opportunity to connect with James Kinson, host of the Cash Car Convert podcast.
James has a fun story to share and some great lessons to teach. He’s a long-time car guy who got the debt-free religion and changed his car-buying habits. To his delight, he’s wound up a good deal richer than ever before!
He’s got some great lessons to share and in this show we discuss:
- The impact a cash car can have on your wealth
- Leasing vs. buying
- Whether the advice to buy a good used car still applies in the modern day of higher repair bills.
Late Credit-Card Payments Stoke Fears for Banks
The average net charge-off rate for large U.S. card issuers—the percentage of outstanding debt that issuers write off as a loss—increased to 3.29% in the second quarter, its highest level in four years, according to Fitch Ratings.
.. If consumers’ budgets get more stretched, a pullback in spending could pressure both growth and corporate profits.
.. While losses are rising, they remain low compared with historical levels and the 10% net charge-off rate they hit in early 2010.
.. starting around 2014 many lenders loosened underwriting standards substantially, turning to subprime borrowers with lower credit scores that brought in higher yields.
.. That contributed to a new boom in credit-card spending. Card balances nationwide rose 6% over the last 12 months through May, a growth rate that is up from about 1% four years ago
.. The rising losses are occurring during a time of near record-low U.S. unemployment, which suggests that credit performance could quickly weaken should the jobs situation turn.
.. Credit cards also moved to the top of the list of concerns about potential losses in the Fed’s annual stress test of banks in June.
Canadian Banking Sector Downgraded: High Private-Sector Debt
Moody’s Investors Service also downgraded the Canadian banking sector in May, citing high private-sector debt levels.
This Isn’t Tax Policy; It’s a Trump-Led Heist
This isn’t about “jobs,” as the White House claims. If it were, it might cut employment taxes, which genuinely do discourage hiring. Rather, it’s about huge payouts to the wealthiest Americans — and deficits be damned!
.. If Republicans embrace this “plan” after all their hand-wringing about deficits and debt, we should build a Grand Monument to Hypocrisy in their honor.
Trump’s tax “plan” is a betrayal of his voters. He talks of helping ordinary Americans even as he enriches tycoons like himself.
.. fewer than 10 percent of low-income households with children would get anything at all
.. families earning between $10,000 and $30,000 a year would receive an average child care benefit of just $10.
.. In fairness, Trump’s proposal does include some sensible elements. Raising the standard deduction is smart and would simplify everything, reducing cheating and the need for record-keeping because millions of filers would no longer itemize deductions.