America is On Time–with Credit Card Payments

Way back in 2009, we noted that Americans were–finally–learning to use credit wisely, and were paying off their balances on time.

Well, guess what, USA? You’re continuing to kick credit card butt. According to the American Bankers Association, late payments for bank-issued credit cards hit an eight-year low in the first quarter of this year.Just 3.8 percent of accounts were 30 days past due.

That could mean that more people are employed or…

Be Wary of Credit Card Offers in the Mail

The recession hasn’t only lightened our wallets but our pile of mail, as well. Credit card deals offered through the mail are quickly drying up. Because of the economy, credit card companies have made cutbacks in direct marketing, which has decreased the number of new credit card offers mailed to consumers by 71%. Not only are people receiving fewer credit card offers in the mail, but the ones still going out are becoming less and less desirable and legitimate. As a result, chances are that the offers mailed to your house aren’t the best.

The marketing agencies that send the deals choose to make offers that you are most likely to accept, not the ones that are best for you. The perks in unsolicited offers—cash back, awards points, free flights—often obscure the hazards, tricking you into accepting credit that could seriously threaten your financial health…

No Comeback for Credit Cards

In case you haven’t heard, Americans are plunking down their gold (and blue and red and green) cards a lot less. And it looks like some of us are swearing off them altogether.

Almost a quarter of people said they had permanently changed their attitude towards credit cards and would not be using them anymore…

Recession Teaches Americans How to Use Credit (Finally)

Americans are pretty dumb about money. If you’re tempted to argue with that statement, just remember that we’re in a financial crisis of our own making.

The good news is, the downturn seems to be making us smarter—at least when it comes to credit cards. People are actually becoming more responsible, taking on less credit card debt and paying off their balances promptly. How do we know? Because it’s hurting the credit card companies! According to the Washington Post, Capital One Financial, the company that issues the Orbitz and MTV Visas, among other cards, is losing money in part because it’s not making as much from fees.

“Many have witnessed the financial turmoil and threats of layoffs and taken a more disciplined view of their finances, making sure to submit payments on time and adhere to limits,” the Post says…

Getting Punished with Rewards

When it comes to money, I’m a bit of a goody-two-shoes. I have two credit cards I chose very carefully, always pay bills on time, and stay far below my credit limits. As a result, I’m sort of getting screwed.

These days, since I’m earning less money, I need my credit cards more then ever. I’m not talking about running up more credit, but the second currency I’ve built up over years of hard—yet responsible—spending.

In flush times, credit card rewards are a nice bonus. Since I lost my job, they’ve been helping to make up for my reduced cash flow. I used three months worth of American Express Membership Rewards to offset the cost of a hotel room for my cousin’s wedding. I used some to buy a toy for my oldest nephew…

Bad Debt Settlement Companies

It can’t be said enough that debt settlement companies are a poor option if you’re strapped with overwhelming credit card debt. From the New York Times Saturday:

When you sign up, many firms require you to pay a sizable fee upfront. Or they may levy initial set-up and monthly fees, and charge a percentage of the amount they saved you. They typically advise you to stop paying your debts and tell you to put aside money each month in a separate account over a period of two or three years. That sum will eventually be used to negotiate a settlement, usually about 60 percent of what you owe. In the meantime, though, credit card companies continue to charge interest and late fees. The creditor may sue. And the phone will probably continue to ring incessantly. The companies can offer no guarantees — except that your credit score will drop.

…

Recession Briefing 5.11

What you need to know today to survive and thrive in the recession.

The recession’s lasting impact may be that Americans put more of their income into savings. “In the last year, the savings rate — the percentage of after-tax income that people do not spend — has risen to above 4 percent, from virtually zero.” (New York Times)

Is this the worst year to graduate college ever? “Ivy League grads with heaps of student loans are fighting over jeans-folding gigs at Forever 21,” reports Zac Bissonnette. (The Daily Beast)

Men increasingly suffer from recession-related depression, according to a new study. Almost 40% of men admit to feeling low at the moment with job security, work and money playing on their minds. (BBC News) This is also called recessed.

Dealing with Debt: Credit Cards

No, you’re not imagining it—just as everyone in the country is more strapped for cash, lenders have been raising interest rates and fees on credit cards. Miss a payment and your interest rate could rocket to 30 percent; continue to carry a balance and you could be slapped with a $10 charge.

That’s bad news in the best of times; if you’ve been laid off, those are extras you simply can’t afford.

We’ve already shared the latest and greatest information on handling your mortgage, especially if you’re in a financial crisis. Here’s the most current advice on controlling your credit card debt. Get out before you become a victim of what some see as the next wave of the economic downturn.