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Pandemic led to U.S. housing boom, reduced credit card debt, New York Fed says

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Photo by Adam Kontor on Pexels.com

Last month, the Federal Reserve Bank of New York released their quarterly report on Household Debt and Credit for the fourth quarter of 2020.

Although the ravages of the pandemic are still massive and widespread, there were some glimmers of a silver lining. Some takeaways being:

  • The coronavirus pandemic changed the way U.S. consumers use credit, as lower interest rates spurred a boom in home buying and refinancing and virus-related shutdowns led to a drop in credit card use and an increase in paying off debt, according to a report released on Wednesday by the New York Federal Reserve.
  • Home buying and refinancing took off last year after the Federal Reserve slashed its key overnight interest rate to near zero to fight the economic fallout from the pandemic, leading to lower mortgage rates. A massive shift to working and learning from home also bolstered the housing market, as some families searched for properties with more living space.
  • Credit card balances increased by $12 billion in the fourth quarter but balances were still $108 billion lower from a year earlier – the largest yearly decline since the report was launched in 1999.
  • In total, all household debt not related to housing – including credit card debt, auto loans, student loans, and other debts – increased by $37 billion during the fourth quarter but was still below pre-pandemic levels seen at the end of 2019.

Read the full report here.

Economics of Valentine’s Day

Valentine’s Day Shoppers Plan to Spend $21.8B in 2021

In 2021, about half of  U.S. adults plan to celebrate Valentine’s Day and spend a total of $21.8 billion, down from $27.4 billion in 2020, according to the National Retail Federation (NRF).23 But 2020 was a record year, and the 2021 anticipated spend is still the second highest since the NRF first published its annual Valentine’s Day spending survey in 2009. 

Read more about the economics of Valentine’s Day here.

An interesting fact

Genghis Khan - Your Startup Guru
Genghis Khan

After the murder of his father, Genghis Khan went into poverty, even being enslaved at one point. It wasn’t until he was in his 50’s did he rise to power and become the Khan of Mongolia.

Your Startup Guru Client – Tutor At Desk

Tutor At Desk is a promising nonprofit that provides free computer programming classes and loaner laptops to anyone that wants to take one (or more) of their many courses including HTML5, JavaScript, Python, app development, and more.

Your Startup Guru created an informational deck and grant proposal which will be used to help raise additional capital for its operations.

Let us help you launch your business. Contact us and let’s get to work!

Wash 2020 Away

Wash 2020 Away.  It is a new year and a new opportunity to build something great - Your Startup Guru

It is a new year and a new opportunity to build something great

Happy Holidays

Remember to Shop Small

Shop Small Saturday - Your Startup Guru

The health of small and medium businesses is a major factor of the economy. The SBA considers companies with less than 500 employees to be “small businesses,” which encompasses 99.7% of all businesses.

2020 has been devastating for businesses throughout the Nation. More than ever, Shop Small Saturday is vitally important.

SXSW 2021 PanelPicker

SXSW 2021 PanelPicker - Your Startup Guru

Your Startup Guru client Corrio is applying to present by panel discussion at SXSW PanelPicker Online 2021. Your Startup Guru created a pitch deck for Corrio which allowed them to fundraise as well as enter into a private group of international members comprising an angel investor networks.

Corrio was accepted last year but with the pandemic, plans had to change.

SXSW 2021 PanelPicker Corrio page - Your Startup Guru

To vote for them to present in the 2021 event, please follow the link: https://panelpicker.sxsw.com/vote/110396

Your Startup Guru Client – OSYS Naturals

Osys Naturals logo - Your Startup Guru
Osys Naturals

Osys Naturals offers a fantastic line of skin care solutions for razor burn, razor bumps, ingrown hair, and skin irritations.

Osys Naturals came to Your Startup Guru seeking financing to expand his company. Through our business plan and fundraising services Osys was able to secure the capital necessary to grow.

Contact us today for your startup needs.

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