Moneymoneydebtoverage50

Sat Feb 13, 2016, 11:46 PM

New York Fed Finds Large Increase in Debts Held by Those Over Age 50

Americans in their 50s, 60s and 70s are carrying unprecedented amounts of debt, a shift that reflects both the aging of the baby boomer generation and their greater likelihood of retaining mortgage, auto and student debt at much later ages than previous generations.

The average 65-year-old borrower has 47% more mortgage debt and 29% more auto debt than 65-year-olds had in 2003, according to data from the Federal Reserve Bank of New York released Friday. The result: U.S. household debt is vastly different than it was before the financial crisis, when many younger households had taken on large debts they could no longer afford when the bottom fell out of the economy.

The shift represents a "reallocation of debt from young , with historically weak repayment, to retirement- aged consumers, with historically strong repayment," according to New York Fed economist Meta Brown in a presentation of the findings.

http://www.nasdaq.com/article/new-york-fed-finds-large-increase-in-debts-held-by-those-over-age-50-20160212-00427

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Reply New York Fed Finds Large Increase in Debts Held by Those Over Age 50 (Original post)
Gamle-ged Feb 2016 OP
Troll2 Feb 2016 #1
exindy Feb 2016 #2
Gamle-ged Feb 2016 #3
DoDaMan Feb 2016 #4
MercATC Feb 2016 #5

Response to Gamle-ged (Original post)

Sun Feb 14, 2016, 12:36 AM

1. The impecunious Baby Boomers have begun passing 65

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Response to Gamle-ged (Original post)

Sun Feb 14, 2016, 09:20 AM

2. Usual bullshit piece out of the business sector.

Put more money in the stock market.... it's more important than food and housing.

"Auto loans, student loans and credit card balances all increased while mortgage balances were little changed."

IOW, those things that most affected common people by inflation had to be bought with borrowed money. Well, since those people weren't able to increase their income.... what option did they have?

And because things cost more but available money hasn't kept up the term has to be increased.

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Response to exindy (Reply #2)

Sun Feb 14, 2016, 09:42 AM

3. But the unemployment and the inflation rates are wonderfully LOW (officially), everything should...

... be peachy keen!...

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Response to Gamle-ged (Original post)

Sun Feb 14, 2016, 10:51 AM

4. Obama's fault.

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Response to Gamle-ged (Original post)

Sun Feb 14, 2016, 04:04 PM

5. Money is cheap right now.

I retire in 3 months and we're adjusting financials

We actually refinanced our house for 30 years (plan to sell it in 5-6 years) and paid off cars, credit cards, etc.......because we got a 30-year mortgage at 2.99%.

We left a ton of equity in the house and we'll just sell when we want to. In the meanwhile, we reduced our money out each month by about $2500.

Increased mortgage debt with very low interest rates isn't necessarily a bad thing.

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