US consumer cut back on credit card use in April

Posted by administrator | 07/06/12 | Tagged Credit Card Debt

US consumer cut back on credit card use in April
News from The Associated Press:

US consumer cut back on credit card use in April

WASHINGTON (AP) — U.S. consumer borrowing increased more slowly in April, restrained by a sharp reduction in credit card debt.

The report suggests Americans may be resisting their credit cards after seeing employers pull back on hiring this spring.

The Federal Reserve said Thursday that consumers increased borrowing by $ 6.5 billion in April. That’s just half the March gain.

The increase was driven by a $ 9.96 billion rise in a category that measures auto and student loans. That offset a $ 3.4 billion drop in credit card debt, the first decline since January.

Total borrowing rose to a seasonally adjusted $ 2.55 trillion. That was slightly below the all-time high of $ 2.58 trillion reached in July 2008, eight months after the Great Recession began.

Consumers had begun to use their credit cards more freely at the start of the year, a move that coincided with solid job gains over the winter. But hiring slowed sharply in April and May, which may have forced some to cut back on their plastic.

Employers added just 69,000 jobs in May, the fewest in a year, and just 77,000 jobs in April.

The economy added 252,000 jobs a month from December through…………… continues on The Associated Press

… Read the full article

Related News:

Pay Off Mortgage or Credit Card Early?
News from Fox Business:

Dear Debt Adviser,
I own a home, on which I owe $ 92,000, and have 24 years of mortgage payments left at around $ 580 per month. I rent it out at a rate which pays the mortgage, PMI and taxes ($ 800). I can pay it off in seven years by paying additional money. I don’t ever plan on living in it again and plan on using it for retirement income by renting it. It’s valued at $ 70,000. Should I pay it off or pay big into a $ 30,000 credit card/loan debt which is at 9% interest?
— Rickey

Dear Rickey,
Rather than focusing on your interest rates, I suggest you look deeper into what the rates are attached to. Think about what could go wrong that would be hard to recover from if something unforeseen bites you. I recommend you use your extra income to pay off your credit card debt — but not for the reason that you may be thinking (the 9% interest rate). Your mortgage debt is a big friendly dog that is sleeping in the corner, not bothering anyone and paying for itself with rent money. In comparison, your credit card debt is like a barking, junkyard dog waiting to maul you if you make the wrong move. Better to let the sleeping dog lie and deal with the dangerous dog.

Use Bankrate’s credit card payoff calculator to determine how quickly you can pay down your $ 30,000 credit card debt and then commit the funds to do it. But the commitment doe…………… continues on Fox Business

… Read the full article

US consumer cut back on credit card use in April

Posted by administrator | 07/06/12 | Tagged Credit Card

US consumer cut back on credit card use in April
News from BusinessWeek:

  • order a reprint
  • digg this
  • save to

</…………… continues on BusinessWeek

… Read the full article

Related News:

Don’t use credit card to dig deep hole of debt
News from The Augusta Chronicle:

Staff writer

When used responsibly, credit cards can be a good tool for college students, according to Kevin Blair, Georgia region chairman, president and CEO at SunTrust.

“I do think that every college student should get out and establish credit,” Blair said. “There’s something in the industry called a thin file. A thin file is a person that doesn’t have any credit. Most credit issuers do not want to deal with that person because there’s no credit history to say whether they’re trustworthy or not.”

Establishing credit will help college graduates when they want to buy a car or home, he said.

One credit card is sufficient to develop a credit history. A person’s credit score can be affected if they have too many credit cards that are not being used. Also, most credit cards offer rewards, so it’s better to use one card to maximize them, Blair said.

A person must be 21 to sign up for a credit card, but parents can co-sign to help younger college students establish credit. Being a co-signer allows parents to have an active role in their child’s credit card usage because they will have access to statements. Parents can warn the child that making late payments results in late fee…………… continues on The Augusta Chronicle

… Read the full article

© 2018. Credit Card Talk