Concourse lending review was basically written to make public educate and aware about the savings and borrowing habits of Americans during the last ten years.
As of’08 September because of markets froze everybody was shocked. The biggest banks were in a precarious position, deregulation generated but finally the banking system of country became nationalized. This economic crisis had a great impact on the politics and on economy as well of the whole world in the next ten years.
Besides such economic crisis of whole decade the borrowings and saving habits of Americans didn’t improved. They were still borrowing the amount of money more than they should.
Concourse Lending Review : Are Americans incapable of saving?
After such a financial crisis it have been observed that Americans were entered into a new age of carefullenss towards the money, that how to spend it. The lenders were not able to rely on high rates of interest anymore. By borrowing money initially it seemed that Americans are changing there habits.
It has been recognized in the survey of Consumer Federation of America in 2009 that almost half of the Americans are trying to pay their debt, but as per to the numbers from last year it has been dropped to 40 Percent.
After the crisis everybody was shocked and almost every person was struggling with debts. And when things started getting better personal savings went high as 11 percent in 12. But this was nothing but a temporary state of being. That year lenders wrote a lot about consumer debt and which resulted in increased percentage of personal savings in 2012.
Ways To Pay Off Credit Card Debt:
After the crisis it’s been recognized that spending of Americans increased little with no aspect of saving. And in that matter JPMorgan chase institute conducted two studies:
- In first study the consumer data obtained from New York based banking giant. And this showed over 4,000 of consumers with the adjustable mortgage rates, and these were reset to the lower rates in between April 2010 to December 2012. And in between these two years usage of credit card increased, it was such an increase that by 4 Percent mortgage savings were left behind.
- The second study was based on the habits of over 25 million credit card users of chase Bank. And it was founded that people spends 80 percent of the money they have saved on the fuel costs.
Many of Americans doesn’t understands that they are required to keep a base level of their spending which is lower then their earnings. In general Americans are not good with their finances, to save intiatially the label of wages made it hard for the families and specially in the case of low income families. Higher education cost and housing costs are making it even more worse. Retailers were targeting markets so as to make people for spending a lot. For maintaining a sense of frugality can say that little or no efforts has been made. In the country they are having no concept of saving the money.
Concourse Lending Review Looks At Banks:
The behaviour of Concourse lending review was also affected by the banks and the lenders. The debt of vehicles increased by 75 Percent in 2010 first quarter, and it that was based on the numbers by Federal Reserve Bank in New York. A lot of delayed for purchasing cars as the crisis ended and it made a sense too. Auto loans were increased the available supply, lenders noted this and they relaxed the standards after which people started to take auto loans after the crisis ended.
Secured credit card market also showed Concourse lending review that financial industries are encouraging people for debts instead of saving the money. These cards were created for those people who are not able to apply for mainstream credit cards, and that’s the reason why before getting the card consumers are required to make a security deposit. People can actually get benefited from secure credit card but they are not even using it. Secure credit cards are not profitable for them and that’s why people opts for the lenders who come at high costs instead of secured credit cards.
Concourse Lending Review Looks At Millennials:
For the people who were coming from from the age during 2000s recession was particularly difficult for them. Concourse lending showed that college going people were stuck with the student debt and the job market was more than a weak, that was dismal. People who were not able to finish the college was in more worse situations as they were competing with those people who more qualified than them. And that led to form two narratives about the financial crisis and Millennials:
- The first one is that they faced this crisis during their formative years. They were more aware about credit card debt. In another survey it’s been recognized that 60 percent Millennials had atleast one credit card, baby boomers comprised of 90 percent credit card holders. Generation X was having 80 percent of credit card holders. They were trying for coming out from a financial hole and that means they doesn’t qualify for the credit line, as per mainstream credit standards younger people are less worthy.
- In the second one Millennials are not that much interested in owing homes as compared to the previous generation. Younger people are delayed in making such major purchases which was done by previous generation at same time. Still nowdays young adults are trying to pay their students loan. They are living in cities since long time and that’s why they can rely more on public transport.
Concourse Lending Review Says that shift in consumer behaviour is debatable
Home equity seems to be the biggest impact on the financial behaviour of country. Before the crisis Americans uses their home equity as a means to speculate in the real estate for the consumption of finance. Whereas now over 40 Percent of people are using these funds of home equity for making improvements on their homes. Before the crisis their homes were there piggy banks which is exact opposite after the crisis.
After recession shift in consumer behaviour is debatable. As per Concourse lending review the change in scenario is a fault of consumers or lenders doesn’t matters but is still inconclusive. Both factors are playing a role in the consumer debts levels currently. There is still no answer after a decade for question that wether crisis led Americans to not own home.
Home ownership of the country fell by 6 percent from 2006 to 2016. And this clearly means that lot of people couldn’t cope with their bubble era mortgage. Lending standards became strict after crisis and cost of single family rental homes increased. As of 2018 it has been recognized that home ownership has increased up to 64 percent.
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