Stimulus Cash Minimized Impression Retail Closures Had on Retailer Credit score Playing cards

Pheelings Media / Getty Images / iStockphoto

Despite limited access to physical stores at the start of the pandemic, retail credit card-backed securities have not and have not been affected by store closures lead to increased failures, according to data from Fitch Ratings.

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Continue reading: Petition for 4th Stimulus for Monthly Payments of $ 2,000 Reaches 2.9 million signatures

After three rounds of stimulus, more Americans were able to put cash into savings or on outstanding debt. A study by Northwestern Mutual found that personal debt has fallen by more than 20% since 2019.

“The fact that people are making significant strides in deleveraging is encouraging to see, especially at a time when many are still recovering from the financial impact and uncertainty caused by the COVID-19 pandemic,” Christian said Mitchell, Executive Vice President & Chief Customer Officer at Northwestern Mutual.

Fact check: Will there be a fourth stimulus check?

The performance of the retail credit card trust is largely influenced by consumer strength. While fees slowed at the beginning of the pandemic, they have since increased to higher levels than they were before the pandemic. Fitch Ratings cites consumer willingness to use federal unemployment benefits and individual stimulus checks to help settle credit card debt.

According to Fitch’s retail credit card index, the 12-month average of late payments of 60 days or more fell from 2.78% in March last year to 1.77% in August. Withdrawal rates are still low with a 12-month average of 4.92% (as of August 2021 from 7% in March 2020) The increase in credit card balances continues to show an upward trend.

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To learn: Millennials and Generation Z Financial Confidence Raised 60% During COVID-19

Fitch Ratings also noted that as the delta variant spreads, it is too early to say if the balance continues to rise and Consumer confidence is falling. Retail cards also have a lower consumer payment priority.

The story goes on

More from GOBankingRates

Last updated: September 23, 2021

This article originally appeared on GOBankingRates.com: Stimulus Money minimized the impact of retail closures on store credit cards

How faculty closures have an effect on taxpayers and college students: ‘You stole my cash and I’m $188,000 in debt and for what?’

Hello and welcome back to MarketWatch’s Additional credit Column, a weekly look at the news through the lens of debt.

I have this week written about the collapse of some well-known college chains, the dissolution of their parent organization Dream Center Educational Holdings, and pressure from advocates and students to hold school executives accountable for their collapse.

For this week’s extra credit, I figured I’d stick with the topic and talk a bit about the impact of school closings on students and taxpayers.

When college chains like the Dream Center – including the Art Institutes and Argosy University – collapse, students are left with few good options. You can try to transfer your credits to another school. Or they can have their federal student loans canceled, putting taxpayers at risk for any canceled debt. But the people who ran the schools often escape responsibility.

Proponents urge the Biden government to hold executives personally accountable for their role in the demise of these schools, a move they believe could protect students and taxpayers in the future. When schools collapse, the Department of Education, which is usually one of many creditors, doesn’t have much money left to claim and use to mitigate losses.

In the case of the Dream Center, the Department of Education has already canceled more than $ 100 million in loans to borrowers who attended schools when they closed.

“Pursuing personal liability is the only way to prevent hasty closings and reimburse taxpayers for the costs associated with fraud and closings that are most harmful to students,” said Yan Cao, senior fellow of the Century Foundation.

Still, some are skeptical of the idea of ​​holding school principals personally accountable. While executives who break the law and are knowingly involved in misconduct should not be immune from legal scrutiny, “the proposal goes way beyond that,” said Jason Altmire, president of Career Education Colleges and Universities, a trade group that promotes for-profit corporations represents universities.

“This is a bit of a departure from the traditional rules of personal responsibility in American corporate law,” he said.

Further than the Ministry of Education has ever gone

Holding executives accountable would be further than the Department of Education has ever gone in overseeing for-profit colleges. Still, the agency has had powers to do so since the 1990s, the National Student Legal Defense Network, which represents student loan borrowers in litigation, including former students of the arts institutes, argued in a memo last year.

Senator Elizabeth Warren, a Massachusetts Democrat and former long-time university professor, confirmed that conclusion in a press Publication for the report. She urged the department “to use every available tool to hold executives and university owners personally accountable who defraud students”.

This week, Rep. Bobby Scott, a Virginia Democrat and chairman of the House Education and Labor Committee, said: wrote to The Ministry of Education is calling on the agency to use its powers to hold executives personally responsible for the liabilities of their collapsed schools to the federal government.

“We want them to use whatever leverage they have to achieve progressive profits, and that includes curbing abuse of for-profit colleges,” said Jeff Hauser, executive director of The Revolving Door Project at the Center for Economic and Policy Research Bidener administration. “In general, dishonesty and consumer fraud must be taken very seriously by the executive branch.”

One way to do this would be to take a closer look at the agreements colleges are making with the Department of Education to receive federal grants, said Beth Stein, senior advisor at the Institute for College Access and Success. “We have to think a little more proactively about what the terms of the contract look like,” said Stein. The contracts could, for example, include personal liability on the part of managers in the event of a college failure.

“This is something the new boss of [the Office of Federal Student Aid]”And his team” could contribute to how they might approach these things in the future, “she said.

“The people who are held accountable will not be held accountable”

Meanwhile, students like Cherisse Hunter-Southern struggled with the aftermath of the turmoil for the school chains for years before they became part of the Dream Center portfolio and eventually collapsed.

Hunter-Southern, 40, is about the age she would like to consider buying a home, but the damage to her creditworthiness from the $ 188,000 student loan she is struggling to repay has made it difficult.

Hunter-Southern, who sued Argosy University shortly after it was sold to Dream Center by Education Management Corporation, chose the school’s campus in Ontario, California to get her PhD in psychology because they are attending college wanted to be close to her home, which was flexible enough to accommodate work, school and her duties as parents.

But the education was below average, she said even before the school closed.

The schools owned by the Dream Center collapsed in 2019 when it was alleged that college executives knew of accreditation problems at some of the art institutes’ campuses and failed to inform the students. and that students at many colleges in the Dream Center chains did not receive scholarships – the financial resources that students received in addition to tuition for living expenses – and more.

Earlier this year, Hunter-Southern wrote to the judge overseeing the bankruptcy administration, asking him to block a proposal by court-appointed bankruptcy administrator Mark Dottore that would rule out litigation against the executives for their behavior in relation to the schools.

Dottore, through his attorneys, urged the judge to overturn their objection, saying that “the overwhelming majority” of Hunter-Southern’s training took place while the school was owned by EDMC and the bar association’s order would not prevent them from filing claims filing against them of the entities that preceded the bankruptcy administration, including EDMC, or the bankruptcy administration. Dottore wrote through his attorneys that he may decline their request in the future.

Following a Zoom hearing earlier this week in which the judge announced he would approve the bar association’s order, Hunter-Southern said she was “confused” by the situation.

“The people who need to be held accountable will not be held accountable,” she said, adding that if the leaders “want to work elsewhere, they have the opportunity and potential to do the same, not just for me . but for other students. ”

Hunter-Southern found that consumers have the opportunity to get their money back with much smaller purchases than with higher education.

“If you go to the store and get broken sunglasses, you should be able to return the sunglasses and get the one you want,” she said.

“You stole my money and I owe $ 188,000 in debt and what for? The worst education ever. “

Dwell leisure venues hungry for monetary reduction after yr of pandemic closures

The click of a light switch echoes these days at the empty Stone Church music club in Brattleboro, Vermont. Owner Robin Johnson says the silence is a daily reminder of a devastating pandemic year with no live performances in the hall.

“When we first closed, everyone agreed it was going to be a few months and we would be back, it would be fine,” Johnson told ABC News. “It all developed and changed so quickly.”

Hundreds of live entertainment venues nationwide – which were among the first to operate after the Coronavirus Pandemic hit and now among the last to be fully reopened – on the verge of financial bankruptcy, even as other sectors of the U.S. economy slowly come back to life. Many have already closed for good.

“Unfortunately, we estimate about 300 and that’s the kind of thing that just crushes every day. And when I open my laptop and get a note about someone else, it’s just devastating because it was through no fault of my own.” said Audrey Fix Schaefer of the National Independent Venues Association.

Broadway theaters in New York City went dark exactly a year ago this week and won’t reopen until May at the earliest. From the New Orleans jazz scene to California’s Sunset Strip, many legendary stages and nightclubs say they are on the verge of getting out of business.

In late December 2020, Congress approved a $ 15 billion relief specifically to help closed venues survive the pandemic – an amount that proponents consider to be the largest federal show of support for the arts and culture in US history have designated.

But months later, none of the money was distributed.

“It is still extremely bad because the money has not yet flowed and it will be difficult if we wait. We do not know how long it will take,” said Schäfer.

The Small Business Administration, which manages the grants, tells ABC News that it has “no specific date” for accepting applications, but is expected to do so in early April. Up to 30,000 venues could be eligible, a spokesman said.

Relief will come too late for some venues that simply cannot stand the uncertainty or take on rising debts.

“We’re literally the type who jogged and got hit by the meteor like one with a trillion chance,” Will Eastman, owner of U Street Music Hall, told ABC News in July 2020. Its venue went down in October.

Some of the music’s biggest stars, including Dolly Parton and the Foo Fighters, have come together to put pressure on government and private sector groups to do more to help.

“Neighborhood-free venues like the places I started at run the risk of being closed forever,” says Parton in one recently released PPE.

Earlier this year, industry groups reached out to the White House urging it to rent empty venues as government vaccination sites. Others have held “empty events” – illustrative demonstrations including a stage, banquet tables, and chairs that are not in use – to highlight the impact of the pandemic on the entire industry in hopes of more direct help.

Artists and musicians say the pandemic has impacted creativity and community.

“Music is a shared experience, or in its most optimized form, a shared experience. That’s why we miss that interaction,” Grammy-nominated EDM artist BT told ABC News. “It’s tough, man, because you lack that kind of constructive feedback loop that makes the creative process so exciting.”

The closure of so many live venues has also hurt the recovery of the local economy.

“It is extremely important for any community to have these types of venues open and important. They are vital to the economy,” said Lauren Wayne, general manager of the now-closed Port City Music Hall in Portland, Maine. “They spend money in the restaurants. They buy drinks. They go shopping beforehand and stay at the hotel.”

Nancy Shaffer, president of the Live Events Coalition, said there are 12 million people in the live events industry who typically help generate $ 1.4 trillion. Only 8% of live events are “stage” based, so many are still in need.

“When you talk about live events yourself, you are talking about planners, designers, lighting and sound engineers. You are talking about florists. You are talking about caterers,” Shaffer said. “If you think about it, the ecosystem goes all the way back to agriculture.”

In some places, this ecosystem is slowly recovering. New York City, once the epicenter of the outbreak, has now reopened cinemas for the first time since last March. At least 11 states have lifted all COVID-19 capacity limits for indoor gatherings and live events.

“Most likely the rallies are at full capacity [nationwide] From what we see in terms of the data, it probably won’t happen until 2022, “said Dr. John Brownstein, epidemiologist at Boston Children’s Hospital and a contributor to ABC News.” Of course, nightclubs are a lot of fun, but they’re also likely the places with the least amount of social distancing and the least ability to control the spread of infection. “

At Stone Church in Vermont, Johnson is cautiously optimistic.

“I was able to move a little more from the disaster thinking type to future thinking and thinking about what we need to do to keep the venue safe and open,” he said, hoping for the financial relief to be distributed this spring and the speeding up of vaccinations lays the groundwork for the fall reopening.

“I think this time without live music a lot of people will learn how important it is to their lives,” he said. “And how important it is to support it and support independent artists and venues.”

Copyright © 2021 ABC News Internet Ventures.

Dwell leisure venues hungry for monetary aid after yr of pandemic closures

The click of a light switch echoes these days at the empty Stone Church music club in Brattleboro, Vermont. Owner Robin Johnson says the silence is a daily reminder of a devastating pandemic year with no live performances in the hall.

“When we first closed, everyone agreed it was going to be a few months and we would be back, it would be fine,” Johnson told ABC News. “It all developed and changed so quickly.”

Hundreds of live entertainment venues nationwide – which were among the first to operate after the Coronavirus Pandemic hit and now among the last to be fully reopened – on the verge of financial bankruptcy, even as other sectors of the U.S. economy slowly come back to life. Many have already closed for good.

“Unfortunately, we estimate about 300 and that’s the kind of thing that just crushes every day. And when I open my laptop and get a note about someone else, it’s just devastating because it was through no fault of my own.” said Audrey Fix Schaefer of the National Independent Venues Association.

Broadway theaters in New York City went dark exactly a year ago this week and won’t reopen until May at the earliest. From the New Orleans jazz scene to California’s Sunset Strip, many legendary stages and nightclubs say they are on the verge of getting out of business.

In late December 2020, Congress approved a $ 15 billion relief specifically to help closed venues survive the pandemic – an amount that proponents consider to be the largest federal show of support for the arts and culture in US history have designated.

But months later, none of the money was distributed.

“It is still extremely bad because the money has not yet flowed and it will be difficult if we wait. We do not know how long it will take,” said Schäfer.

The Small Business Administration, which manages the grants, tells ABC News that it has “no specific date” for accepting applications, but is expected to do so in early April. Up to 30,000 venues could be eligible, a spokesman said.

Relief will come too late for some venues that simply cannot stand the uncertainty or take on rising debts.

“We’re literally the type who jogged and got hit by the meteor like one with a trillion chance,” Will Eastman, owner of U Street Music Hall, told ABC News in July 2020. Its venue went down in October.

Some of the music’s biggest stars, including Dolly Parton and the Foo Fighters, have come together to put pressure on government and private sector groups to do more to help.

“Neighborhood-free venues like the places I started at run the risk of being closed forever,” says Parton in one recently released PPE.

Earlier this year, industry groups reached out to the White House urging it to rent empty venues as government vaccination sites. Others have held “empty events” – illustrative demonstrations including a stage, banquet tables, and chairs that are not in use – to highlight the impact of the pandemic on the entire industry in hopes of more direct help.

Artists and musicians say the pandemic has impacted creativity and community.

“Music is a shared experience, or in its most optimized form, a shared experience. That’s why we miss that interaction,” Grammy-nominated EDM artist BT told ABC News. “It’s tough, man, because you lack that kind of constructive feedback loop that makes the creative process so exciting.”

The closure of so many live venues has also hurt the recovery of the local economy.

“It is extremely important for any community to have these types of venues open and important. They are vital to the economy,” said Lauren Wayne, general manager of the now-closed Port City Music Hall in Portland, Maine. “They spend money in the restaurants. They buy drinks. They go shopping beforehand and stay at the hotel.”

Nancy Shaffer, president of the Live Events Coalition, said there are 12 million people in the live events industry who typically help generate $ 1.4 trillion. Only 8% of live events are “stage” based, so many are still in need.

“When you talk about live events yourself, you are talking about planners, designers, lighting and sound engineers. You are talking about florists. You are talking about caterers,” Shaffer said. “If you think about it, the ecosystem goes all the way back to agriculture.”

In some places, this ecosystem is slowly recovering. New York City, once the epicenter of the outbreak, has now reopened cinemas for the first time since last March. At least 11 states have lifted all COVID-19 capacity limits for indoor gatherings and live events.

“Most likely the rallies are at full capacity [nationwide] From what we see in terms of the data, it probably won’t happen until 2022, “said Dr. John Brownstein, epidemiologist at Boston Children’s Hospital and a contributor to ABC News.” Of course, nightclubs are a lot of fun, but they’re also likely the places with the least amount of social distancing and the least ability to control the spread of infection. “

At Stone Church in Vermont, Johnson is cautiously optimistic.

“I was able to move a little more from the disaster thinking type to future thinking and thinking about what we need to do to keep the venue safe and open,” he said, hoping for the financial relief to be distributed this spring and the speeding up of vaccinations lays the groundwork for the fall reopening.

“I think this time without live music a lot of people will learn how important it is to their lives,” he said. “And how important it is to support it and support independent artists and venues.”

Copyright © 2021 ABC News Internet Ventures.