US Banking Sector Faces Hundreds Of Billions In Deferred Loans As Banks Plan To Cut The Cord (Video)
US Banking Sector Faces Hundreds Of Billions In Deferred Loans As Banks Plan To Cut The Cord Video by Silver Report
This is turning into a financial crisis rather rapidly as millions of Americans have lost their jobs and Billions in loans have gone into special deferment programs designed to help ease the burden.
For many medium-sized banks, the number of their total loans that are in deferment have exceeded 15% – 20% of their total loan book. We have never faced a situation like this and the banks have begun looking into who really needs to have help with their loans.
An interesting finding is that when you offer an option for people to defer their loans they take it even if they are able to pay. I think it’s more for the bank’s own interest but the truth is these banks will be in a world of trouble if they can’t fix this deteriorating situation.
People need to pay their bills and people need to pay their rent. I have said it before the position to be in when we enter an economic collapse is in a position to buy things. Having a good credit score in a time when the banks are drastically tightening credit means you may still have options in the event we see some big discounts in real estate or even vehicles.
I believe even if given the option to defer payment if you have the capacity it is wise to continue to make your payments and I find keeping a small running tab is a good way to have a rising credit score. We are entering a very dark period in our economy and discipline and saving goes a long way when there is so much uncertainty in the world.