Reports can often be skewed; economists can make numbers bend to the outcome they may desire; so the veracity (the truth) of the report must be analyzed before forming a personal opinion about the information that is being offered.
The Federal Reserve Bank in February issued a report showing that a record 7 million Americans were 90 days or more delinquent on their car loans. Applying the above standard, I tend to believe the number is accurate because the Federal Reserve has nothing to gain or lose by reporting skewed numbers.
What is interesting about this report is that we are also supposedly living under a strong performing economy and very low unemployment rate; so if we are all working and the economy is producing, why would more Americans than ever before be struggling to pay for their vehicles. The same report showed that there are now 1 million more people behind on payments by three months or more than there were in 2010 when delinquency rates were at their worst. The record has increased by 1 million – that is staggering.
I don’t know how you can read something like that and think everything is okay in our economy.
Reports like this remind me that the economy is fragile and although it is contrary to what I want to do with my money, saving is really important because when the storm hits, I will be so proud of myself if I have the money to weather the 6 months of unemployment, the time off for a new baby, the medical catastrophe.
What does it make you think to know so many people struggle with paying for vehicles even though we reportedly all are working?