Economic Crash 2015 Looming - Student Loans & Subprime Auto-Title Loans

Dear Bloggers,

I have been really concerned about the exponential growth in student loans and I have drawn my attention more to the rise of subprime auto-title loans to be a major issue that I have only seem Jim Rickards cover recently on the RT program Boom Bust. 

     Here is the College Inc., the only documentary worthy of being watched on 20/20 Frontline, the last thing I can remember they did was an Elliot Rodger 2014 special, misrepresenting the events surrounding the Isla Vista shooting which makes me sick since it was a hoax, 100% exposed already. 

     In 2012 I worked at a company known as Westlake Financial Services, Co and helped manage several teams of loan officers at Wilshire Consumer Credit, the child company. It requires some background information to illustrate how this worked out. We ran an Experian Credit score in Buy Program - CRM to track the maximum amount of money we had available to finance to our borrowers. This populated a daybreak value that processed a payment subscription schedule and amount for the customer. For example, with a subprime loan, in 24 months we could lend the borrower $4,075 USD immediately, add on a finance charge of $3,904 USD at a 76.41% Annual Percentage Rate (APR). The primary borrower had a FICO score of 645, with a monthly income of $578 while the co-borrower had a Company Paystub YTD with a monthly job income of $2,609 with a FICO credit score of 592. Westlake Financial Services, Co became a legal registered owner of their 2006 Hyundai Accent with 104,000 miles on it but Wilshire Consumer Credit gave the dealership the BP-CRM to finance the deal structure, and the local dealerships in-turn gave the borrower enough initial capital to purchase their car we owned. On their car registration we were the registered owners and leinholders. The borrower never did and most likely will never own their cars. That's why it's more than honorable just to have a car in your name and always smarter to get a used car. As you can see the Buy Program - CRM, in this framework was mainly utilized for financial processes. 

   Here is a September 2014 overview of the areas U.S. consumer debt profile, which is still mainly derived from mortgage debt: 

Current as of September 2014

U.S. household consumer debt profile:

• Average credit card debt: $15,607
• Average mortgage debt: $153,500
• Average student loan debt: $32,656

In total, American consumers owe:

• $11.63 trillion in debt
  • An increase of 3.8% from last year
• $880.5 billion in credit card debt
• $8.07 trillion in mortgages
• $1,120.3 billion in student loans
  • An increase of 11.5% from last year

http://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/