A new program links payments on federal student loans to income and forgives balances after 25 years. Those working in public service could have loans forgiven after 10 years.
From the category archives:
Personal Finance
Household Net Worth Posts Record Decline
The Federal Reserve has reported the steepest decline in household net worth in the last half century. The gory details follow:
- 2007 net worth – 64.3 Trillion
- Q4 2008 net worth – 51.5 Trillion
Nearly 20% of household net worth has been destroyed. The statistic takes into account assests such as homes, savings, time shares, specialized equipment and a variety of other items. On the liability side – mortgages, consumer credit (credit cards), bank loans and other items.
With the unemployment rate at a 25 year high (8.1% as of February) and sharp upward revisions each release, it’s easy to assume that things will never get better.
The US economy has technically been in a recession since December 2006 and subsequent actions take by the Federal Government to thwart further economic destruction include a $700 billion stimulus package along with $75 billion in mortgage relief funds.
A more thoughtful analysis might lead to a slightly more cheerful conclusion. The recent residential and commercial real estate bubble, which can be attributed in part to low interest rates and easy foreign money to finance increased military spending, is likely responsible for the record asset values which contributed to household net worth’s dramatic rise in the recent past. Had this not transpired, there would be no precipitous decline.
About 20/65 trillion of total Household assets consists of real estate. Looking for a free credit report in these trying financial times? Get yours now! Simply click on the free offer below and you’ll have access to your credit scores almost right away!
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