Americans take on more debt
More than half of Americans said "reducing debt" was their top financial priority for 2018; however, average personal debt increased $1,000 from last year to $38,000. The survey from Northwestern Mutual also revealed that credit card debt is the main source of debt for 25 percent of respondents – tied with mortgages.
In addition, roughly 20 percent of survey respondents said they put half or more of their income toward debt repayment. Overall, respondents spent similar portions of their income on discretionary expenses (37 percent) as paying off debt (36 percent).
Financial literacy company MagnifyMoney recently calculated that Americans have paid $104 billion in credit card interest and fees this year, up 11 percent from 2017 and 35 percent over the last five years. However, a majority of Americans in Northwestern's survey said their debt has "low impact" or "no impact" on their ability to achieve financial security.
Car loans and educational loans were also leading sources of debt; Millennials aged 18-24 were almost five times more likely than the average American to say school loans were their main source of debt.
Credit unions have seen their share of the total consumer credit market increase year-over-year, according to Federal Reserve data. As not-for-profit, member-focused financial institutions, credit unions are known for offering better rates on credit cards and loans, and also have financial education programs available to help members meet their financial goals.
Add to Calendar 2023-02-03 09:00:00 2023-02-03 09:00:00 Winning the Battle for Deposits Listen On: Key Takeaways: [01:28] An overview of the current macro environment. [02:55] Traditional tactics used by credit unions in the battle for deposits and why these are no longer enough. [07:39] Rife competition in the credit union space and how to stand out from the crowd. [10:23] The benefits credit unions can experience by reducing the cognitive load of their members [18:17] Advantages and disadvantages of PFM tools in the battle for deposits. [20:14] What credit unions should demand of their vendors. Web NAFCU email@example.com America/New_York public
Add to Calendar 2023-02-02 14:00:00 2023-02-02 14:00:00 How to Leverage Loan Participations in a Low Liquidity Environment About The Webinar As credit unions continue to face challenges with liquidity starting off 2023, strategic pricing and long-term alternative funding strategies can play a key role in allowing credit unions to serve more members and successfully manage the balance sheet. Loan participations can play a key role helping credit unions sustainably grow their originations, provide the marketplace access to quality, short duration investments, and successfully grow market share. Please join Amy Henderson, Chief Consumer Services Officer at Greenstate CU, Devin Hughes, VP of Business Development at LendKey, and Michael Adams, VP of Lender Development at Open Lending for a panel discussion to learn how credit unions can strategically serve more members, effectively price for loans, and successfully manage their balance sheet. Attendees will: Hear from Credit Union and FinTech experts Learn about loan pricing strategies and participation strategies Glean best practices from industry leaders who have been executing on these innovative strategies that better position the balance sheet for long term growth Find out how credit unions can start the process to identify trusted partners to help them execute on this strategy and serve more members Register for the Webinar Web NAFCU firstname.lastname@example.org America/New_York public
Management, Relationships, Consumer Lending
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