Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Credit Card Late Payments Hit 17-Year Low
Main Street ^ | August 16, 2011 | Eileen A.J. Connelly

Posted on 08/26/2011 7:11:11 PM PDT by Clintonfatigued

Credit card users are so focused on keeping their accounts in good standing that they've driven the rate of late payments down to its lowest level in 17 years.

The national credit card delinquency rate, or rate of payments 90 days or more past due, fell to 0.60% in the second quarter, down from 0.92% a year ago.

That's the lowest rate since 1994, according to credit reporting agency TransUnion.

Delinquencies were expected to drop, but the improvement in that April to June period was faster than forecast.

And the improved payment habits came despite increased use of credit cards, based on quarterly data reported by banks that issue Visa and Mastercard-branded cards and data from American Express Co. and Discover Financial Corp.

(Excerpt) Read more at mainstreet.com ...


TOPICS: Business/Economy
KEYWORDS: bhoeconomy; consumerconfidence; credit; debt

1 posted on 08/26/2011 7:11:14 PM PDT by Clintonfatigued
[ Post Reply | Private Reply | View Replies]

To: Clintonfatigued

Let’s not forget - if that’s even possible - that late fees run twenty to thirty percent per month.

That is clearly usury in anyone’s book.


2 posted on 08/26/2011 7:14:42 PM PDT by Jack Hammer
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin; Nachum; Impy; GOPsterinMA; JulieRNR21

Americans are attempting to get their finances in order. Too bad Obama-Pelosi-Reid don’t want to do the same.


3 posted on 08/26/2011 7:15:13 PM PDT by Clintonfatigued (Illegal aliens collect welfare checks that Americans won't collect)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Clintonfatigued

Now if we could only teach the politicians in D.C....


4 posted on 08/26/2011 7:16:07 PM PDT by FlingWingFlyer (If the Tea Party was a bunch of Islamofascist "rebels", would the state run "media" like us too?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jack Hammer

You beat me to it. It’s not out of a sense of duty or responsibility, it’s that no one wants to pay those exorbitant late fees and interest rates.


5 posted on 08/26/2011 7:17:01 PM PDT by Fast Moving Angel (If he has nothing to hide, why is he spending so much $$$ hiding it?)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Fast Moving Angel

Once you learn to live without credit cards, life is so much better.


6 posted on 08/26/2011 7:18:41 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Clintonfatigued

I guess the card companies are going to have to raise the penalty fees to make up the lost income.

Maybe they could hit the junior high schools now that they given cards to every college student in the country.


7 posted on 08/26/2011 7:20:17 PM PDT by ChildOfThe60s ( If you can remember the 60s....you weren't really there)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jack Hammer

Usury is exactly what it is. The Congress has the power to fix the problem. The reason they haven’t is Biden’s state has a major piece of the credit card processing racket. Nothing can get past him.


8 posted on 08/26/2011 7:23:54 PM PDT by muawiyah
[ Post Reply | Private Reply | To 2 | View Replies]

To: driftdiver

Yep. If I can’t pay cash, I can’t afford it at all.

As a result, I live pretty much bill free aside from everyday expenses and taxes. The house is paid off and my old F150s run fine.


9 posted on 08/26/2011 7:24:00 PM PDT by cripplecreek (Remember the River Raisin)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Clintonfatigued

Good news.


10 posted on 08/26/2011 7:24:44 PM PDT by Huck (I don't believe there is just one God--humanity seems like the work of a committee to me.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Clintonfatigued

How many people have lost their cards, and how many others, myself included, no longer have them?


11 posted on 08/26/2011 7:33:08 PM PDT by Rannug ("God has given it to me, let him who touches it beware.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Clintonfatigued

Dave Ramsey is making a dent I’d say. Good show, good man.


12 posted on 08/26/2011 7:33:51 PM PDT by George from New England (escaped CT in 2006, now living north of Tampa)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Clintonfatigued

Charge everything on Discover or AMEX, pay the balance off every month - earn 1% to 2% on your purchases. (Also negotiate with small retailers - offer to give them 95% of the price if you pay by cash.)


13 posted on 08/26/2011 7:58:49 PM PDT by calico_thompson
[ Post Reply | Private Reply | To 1 | View Replies]

To: calico_thompson

The grocery stores will accept any dollar amount of a transaction.


14 posted on 08/26/2011 8:00:37 PM PDT by calico_thompson
[ Post Reply | Private Reply | To 13 | View Replies]

To: calico_thompson

The grocery stores will accept any dollar amount of a transaction.


15 posted on 08/26/2011 8:01:05 PM PDT by calico_thompson
[ Post Reply | Private Reply | To 13 | View Replies]

To: Clintonfatigued

Because their mortgages aren’t being paid on time.


16 posted on 08/26/2011 8:02:24 PM PDT by Night Hides Not (My dream ticket for 2012 is John Galt & Dagny Taggart!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: muawiyah

Usury is exactly what it is. The Congress has the power to fix the problem.


It seems like you;re not real big on the idea that federal powers should be limited. It’s a conservative principle.


17 posted on 08/26/2011 8:13:24 PM PDT by Atlas Sneezed (Are you better off now than you were four trillion dollars ago?)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Clintonfatigued

bump.


18 posted on 08/26/2011 8:20:41 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Clintonfatigued

Plus, I would bet that with all the “You can negotiate a settlement on your $10,000 or more balance for pennies on the dollar” outfits going gangbusters, most of the big credit card abusers have already been purged and what’s left are people who either run a zero balance every month, or actually pay off their cards.

Gotta be a lot of people who gamed the system for big screen TVs, nice dinners and cruise ship vacations for pennies on the dollar.

No, not the Obamas. They get theirs for free.


19 posted on 08/26/2011 8:23:23 PM PDT by bigbob
[ Post Reply | Private Reply | To 1 | View Replies]

To: Clintonfatigued
that and the fact they can no longer bill on different days of the month preventing automatic payment on a given day and generating massive income in late fees...
20 posted on 08/26/2011 8:34:02 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
[ Post Reply | Private Reply | To 1 | View Replies]

To: driftdiver

Amen.

I do not own a credit card. I never will. I do have a debit card for convenience. I still owe on the house because I’m just still to young to hope to pay it off and I have a vehicle payment because I stay in newer vehicles under warranty. They are both on time if not early. People are depending upon that money just as I am my own paycheck.

That’s it. That’s all. And it’s still plenty.

I have no other debt. No one else own’s my time. Everything I have is mine and no one can take it away from me without assurance of return fire. Plan, save, and control yourself.

I have taken a downgrade in my personal financial life in Obama’s Recession as so many of my fellow Americans have. I make 60% of what I did 3 years ago. It sucks, but, going on credit has not been part of my plan to deal with it. Downgrade the cable service, eat out less, buy less frivolous items, patronize the dollar stores.......etc.

It can work and I am damned determined to see myself through this Great Recession in at least the same shape we went into it if not marginally better. No credit cards involved.


21 posted on 08/26/2011 8:56:15 PM PDT by JoenTX (Don't Tread on Me)
[ Post Reply | Private Reply | To 6 | View Replies]

Late payments kill your score, raising your interest/lowering your limits... a vicious cycle.

So this is good news. The bad news in the article is that balances went up $20.


22 posted on 08/26/2011 9:22:19 PM PDT by D-fendr (Deus non alligatur sacramentis sed nos alligamur.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: driftdiver
How so? I have 1 credit card that I have had for about 10 years now. I really don't understand what the big deal is.

Tomorrow money is worth less but easier to make than today money. And yesterday money was harder to earn and worth more than today money. So if I buy something today with money I saved from yesterday it costs me more. If I buy something today and pay with money I will make tomorrow it costs me less.

If you are paying lots of interest then you are a knucklehead, but otherwise, I really don't see why people feel "free" without a credit card. I have one credit card payment, big deal. Far outweighed by electric, water, garbage, phone, blah blah blah.

23 posted on 08/26/2011 10:11:45 PM PDT by douginthearmy
[ Post Reply | Private Reply | To 6 | View Replies]

To: Clintonfatigued

I have no sympathy for the non-Americans that are hurt by us acting responsibly; we should do a “Hugo Chavez”, and not pay anything to anyone that doesn’t live here.


24 posted on 08/26/2011 11:47:53 PM PDT by kearnyirish2
[ Post Reply | Private Reply | To 1 | View Replies]

To: Night Hides Not
Yep. They have quit paying on their houses to pay off the more expensive credit cards. They are sure obama will assume their mortgage debt, but probably not their MasterCard debt.
25 posted on 08/27/2011 3:59:15 AM PDT by tdscpa
[ Post Reply | Private Reply | To 16 | View Replies]

To: Beelzebubba
Talk to Ben Franklin, Washington, Hamilton, etc.

I'm in favor of limiting government ~ somebody gave weights and measures to the federales!

26 posted on 08/27/2011 4:08:21 AM PDT by muawiyah
[ Post Reply | Private Reply | To 17 | View Replies]

To: Beelzebubba
Talk to Ben Franklin, Washington, Hamilton, etc.

I'm in favor of limiting government ~ somebody gave money to them too.

27 posted on 08/27/2011 4:09:06 AM PDT by muawiyah
[ Post Reply | Private Reply | To 17 | View Replies]

To: George from New England

Amen. I haven’t had a late credit card payment for many years. Could be because I don’t have a credit card.

Dave Ramsey rocks (we’ll be debt free in less than a year).


28 posted on 08/27/2011 4:17:37 AM PDT by brewer1516
[ Post Reply | Private Reply | To 12 | View Replies]

To: douginthearmy

Living on credit is not good, pretty simple. The banks love it though.


29 posted on 08/27/2011 5:14:54 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: muawiyah

States can handle usury laws. There are so many approaches, and well-meaning but misguided efforts that 50 experiments will give more benefit that one hard fought Congressional compromise.


30 posted on 08/27/2011 6:05:35 AM PDT by Atlas Sneezed (Are you better off now than you were four trillion dollars ago?)
[ Post Reply | Private Reply | To 27 | View Replies]

To: douginthearmy
If you are paying lots of interest then you are a knucklehead, but otherwise, I really don't see why people feel "free" without a credit card.

I won't say that they are "knuckleheads" for it but I charge $3000 to $4000 per month on my credit card and pay zero interest. My card company pays me back $30 to $40 per month for using it. That's 1% cash back for purchases I would have made anyway, with or without a credit charge. In the mean time my credit union is offering .17% (Note the decimal point) on pass book savings accounts.

I'm getting paid, comparatively handsomely for using that credit card and the credit card company makes money by charging a merchants fee to acceptors of credit card purchases. The merchant, to recover those charges, charges everybody a little more, therefore, non credit card users are subsidizing my purchases and cash back arrangement with the credit card company.

I charge just about everything that's chargeable, including gasoline for two cars, groceries, phone bill etc. I tried to charge a new car purchase, the dealer wouldn't go along with it and I paid cash, same when I recently spent $5100 on a new furnace and air conditioner, they just wouldn't take a credit card. I don't blame those individuals, it would cost them about 3% of the purchase price to accept credit cards but hey! I use it when I can.

I don't even know any more what the interest rate on my card is, nor do I care.

31 posted on 08/27/2011 6:45:25 AM PDT by Graybeard58
[ Post Reply | Private Reply | To 23 | View Replies]

To: Beelzebubba

Problem is the interest rate rules of the state where they do business (South Dakota, North Dakota, Delaware) prevail. Those states see credit card operations as nothing other than sources of employment.


32 posted on 08/27/2011 9:36:42 AM PDT by muawiyah
[ Post Reply | Private Reply | To 30 | View Replies]

To: muawiyah

There’s always a “problem” that needs solving to justify unconstitutional federal overreach.


33 posted on 08/27/2011 9:50:01 AM PDT by Atlas Sneezed (Are you better off now than you were four trillion dollars ago?)
[ Post Reply | Private Reply | To 32 | View Replies]

To: Beelzebubba

Is there some problem here that you don’t understand? The federales have the power to “make money” ~


34 posted on 08/27/2011 9:58:01 AM PDT by muawiyah
[ Post Reply | Private Reply | To 33 | View Replies]

To: muawiyah

Is there some problem here that you don’t understand? The federales have the power to “make money” ~


No problem. The feds can coin and print money Unless you think like a Democrat, that doesn’t empower them to set interest rate limits in loans between private consenting parties. That’s up to the states.

If you’re going to be a conservative, you might study what it actually means.


35 posted on 08/27/2011 2:10:40 PM PDT by Atlas Sneezed (Are you better off now than you were four trillion dollars ago?)
[ Post Reply | Private Reply | To 34 | View Replies]

To: Beelzebubba
The implied powers of states ~ a doctrine of very long standing ~ must also be considered when you look at any of the express powers in the Constitution.

For example, the Constitution empowers Congress to "To provide and maintain a Navy" ~ which certainly means build ships, build cannon, use armor, etc. That doesn't mean Congress has a monopoly on shipyards, but it obviously means they can do whatever is necessary to "provide" a Navy. States, BTW, are not allowed to keep Ships of War during a Time of Peace WITHOUT Congress' approval.

Most interesting. Only knowledge of that doctrine would have given the Founders the foresight to prohibit states from having warships just sitting about.

So, when it comes to money, we have to look at the ordinary usages of money ~ and right there in the "post office clause" we find the power of Congress to create a bank savings system ~ a common enough understanding of post offices worldwide ~ and that includes paying or receiving interest. Implicit with that we find "setting the rates".

36 posted on 08/27/2011 3:14:49 PM PDT by muawiyah
[ Post Reply | Private Reply | To 35 | View Replies]

To: muawiyah

Set all the rates you want, but don’t put me and my neighbor in jail for setting our own rates.

Done.


37 posted on 08/27/2011 7:55:53 PM PDT by Atlas Sneezed (Are you better off now than you were four trillion dollars ago?)
[ Post Reply | Private Reply | To 36 | View Replies]

To: Beelzebubba

Yes, we will jail you for 30% ~ and maybe for 20% ~ possibly 16% ~ but you get down around 12% you’ll get out in time for next Christmas.


38 posted on 08/27/2011 8:10:23 PM PDT by muawiyah
[ Post Reply | Private Reply | To 37 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson