Credit scores decline for millions as student loan collections restart
According to the Federal Reserve Bank of New York, about 1 in 4 people with student loan accounts were more than 90 days behind on payments at the end of March.
Debt
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Hotels’ vacancy woes cause debt headaches
With travel and convention business continuing to stagnate and COVID-19 cases on a steep rise, many properties find themselves scrambling for long-term loan solutions and pleading for help from lenders.
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Retail developer who took his own life was dogged by debts
Craig Johnson left behind what court records show is millions of dollars in debt that might not be covered by his estate.
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Articles
Mickey Kim: Moody’s downgrade points to looming U.S. debt calamity
Moody’s, S&P Global Ratings and Fitch Ratings are the three primary credit rating agencies for corporate and government borrowers. Moody’s was actually the last CRA to strip the United States of its highest credit rating.
Rising bankruptcy filings hit Indiana, nation
Indiana’s bankruptcy filings are climbing as consumers and businesses feel the economic pinch from housing costs, high credit card debt and student loans.
Medical debt collection agency closes in Fishers
The collection agency, which had more than 90 employees, was ordered in 2023 to pay a $1.68M penalty for violations of federal debt-collection and credit-reporting laws.
Trump wants debt ceiling increase in budget deal. If not, shutdown should ‘start now’
Hours before the start of a possible federal government shutdown, President-elect Donald Trump doubled-down on his insistence that the debt ceiling be increased or eliminated.
Rising price of paying national debt complicates Trump’s promises on growth, inflation
Not only is the federal debt at roughly $36 trillion, but the spike in inflation after the coronavirus pandemic has pushed up the government’s borrowing costs such that debt service next year will easily exceed spending on national security.
Medical debt proposal draws mixed response
A national proposal to remove medical debt from consumer credit reports could have a significant impact in Indiana, where the percentage of residents with delinquent medical debt is higher than in 39 other states.
Not-for-profits, anonymous donor pay off medical debt for 112,000
The debt-relief initiative is part of a partnership between the United Neighborhood Centers of Indianapolis, United Way of Central Indiana and national not-for-profit Undue Medical Debt.
U.S. consumer agency proposes to ban medical debt from credit reports, loan decisions
The rules would ban credit reporting agencies from incorporating medical debt when calculating credit scores. They would also bar lenders from using medical debt to determine loan eligibility.
Indianapolis-based canned cocktail maker in financial distress, facing forced bankruptcy
The CEO of Blue Marble says the company is about $22 million in debt and considering its options after three of its creditors moved last month to force it into bankruptcy.
Capital One to buy Discover in $35B deal that combines major credit card companies
Both companies have benefitted from Americans’ increased use of credit cards. In the fourth quarter of 2023, Americans held $1.13 trillion on their credit cards, and aggregate household debt balances increased by $212 billion, up 1.2%, according to the latest data.
U.S. national debt eclipses $34 trillion for first time
The new milestone comes as lawmakers brace for fiscal showdowns over spending levels in the new year.
Biden administration aims to scrub medical debt from credit scores, boosting ratings for millions
In addition to pulling medical bills from credit reports, the proposal would prevent creditors from using medical bills when deciding on loans and stop debt collectors from using credit ratings to pressure people with health care-related debt.
Credit downgrade for federal government shocks Biden aides, as more debt fights loom
While it caught the White House by surprise, the decision to downgrade U.S. government debt reflects Washington’s persistent battles over rising federal debt, now projected to approach levels unseen since the end of World War II.
Congressional Budget Office: U.S. debt to soar over next 30 years
The nonpartisan agency estimates in its latest 30-year outlook, released Wednesday, that publicly held debt will be equal to a record 181% of American economic activity by 2053.
Fishers-based collection agency ordered to pay $1.68M penalty
The Consumer Financial Protection Bureau issued a consent order last week against Fishers-based Phoenix Financial Services over alleged violations of federal debt-collection and credit-reporting laws.
Debt ceiling talks teeter on brink, as lawmakers leave for weekend without deal
Lawmakers are tentatively not expected back at work until Tuesday, just two days from June 1, when Treasury Secretary Janet Yellen has said the U.S. could start running out of cash to pay its bills and face a federal default.
Debt ceiling breach could wipe out 8 million jobs, White House says
The White House Council of Economic Advisers compared the potential economic impact of a debt ceiling breach to the 2008 Great Recession, in which economic growth contracts sharply and unemployment surges.
Data shows 542K Hoosiers applied for student debt relief from embattled loan forgiveness program
Next month, the Supreme Court will hear oral arguments in two cases seeking to overturn the debt relief policy that conservatives have panned as an expensive giveaway and executive overreach.
U.S. Treasury buys time for Biden, GOP on debt limit deal
The countdown toward a possible U.S. government default began Thursday with Treasury implementing accounting measures to buy time as frictions between President Joe Biden and House Republicans raise alarms.