Credit card debt on the rise, again

Posted by administrator | 24/09/11 | Tagged Credit Card Debt

Credit card debt on the rise, again
News from CNNMoney:

NEW YORK (CNNMoney) — Consumers are racking up credit card debt like it’s 2008.

Americans added $ 18.4 billion to their debt load in the second quarter, a 66% increase from the debt they accumulated in the same quarter last year and 368% more than they tacked on in 2009, according to credit card research firm CardHub.com.

In fact, the last time consumers charged up this much debt during this time period was in 2008 — several months after the recession officially began and when credit card balances climbed by $ 25.2 billion.

Despite the recent spending spree, the total amount of credit card debt consumers have accumulated is still significantly lower than in previous years. Total outstanding credit card debt as of July was $ 792 billion, down 18% from the September 2008 peak of $ 972 billion, according to data from the Federal Reserve.

If current trends continue, however, consumers could find themselves even deeper in the hole. CardHub, which analyzed the c…………… continues on CNNMoney
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Five tips on paying down multiple debts
News from OregonLive.com:

Consolidate. Specifically, transfer your smallest debts into one low-interest loan or credit card. That way, you’ll be more likely to focus on paying off the loan with the highest interest rate first, saving you money over time, says Scott Rick, assistant marketing professor at the University of Michigan and co-author of the 2011 study “Winning the Battle but Losing the War: The Psychology of Debt Management.” 
Tally the interest you’re paying. Studies show our minds have trouble understanding how interest compounds over time. By focusing on the interest you’re racking up, researchers found, you’re more likely to pay the costlier card off quicker. 
Credit card statements don’t report accumulated interest. But money-management software can help. Users of Mint.com, free online personal finance software, can create a…………… continues on OregonLive.com

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Credit card spending slows

Posted by administrator | 24/09/11 | Tagged Credit Card

Credit card spending slows
News from Financial Times:

Credit cards have fallen out of favour with British shoppers, as consumers eschew high interest rates in favour of sensible spending and turn to debit cards.

Some 40 years after they were introduced, credit cards have suffered a reversal in popularity after years of growth.

Figures from the UK Cards Association, passed to the Financial Times, reveal that debit cards outnumber credit cards, indicating a big change in consumer attitudes to spending and borrowing during the past decade.

Between 2000 and 2005 credit card use in the UK accelerated, as high consumer appetite for borrowing and fierce competition from providers drove up demand. The number of cards in this period rose from 47m to 70m.

But in the middle of the decade borrowers re-thought their spending habits, and reduced their credit card use years before the credit crisis came along.

Paul Rodford, head of card payments at the UK Card A…………… continues on Financial Times

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Glendale police arrest credit card worker in identity theft
News from AZ Central.com:

by Morgan Tanabe – Sept. 23, 2011 05:40 PM
The Arizona Republic-12 News Breaking News Team

Glendale police arrested a credit card company worker and her boyfriend suspected of identity theft and the use of a stolen credit card, according to a court document.

Las Vegas resident Amanda Shepherd, who works as a customer service representative at Citi Cards, was arrested Tuesday. George Nelson was arrested on Sept. 2.

The court filing said Nelson used a stolen credit card to purchase $ 14,725 in merchandise from multiple stores in Glendale and around the Valley over a two-day period in August and September. Some of the items included an Apple iPad 2 from a Walmart and a $ 6,820 diamond ring from Zales at Paradise Valley Mall, the filing said.

…………… continues on AZ Central.com

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