US consumers borrowed more on credit cards in May

Posted by administrator | 09/07/12 | Tagged Credit Card Debt

US consumers borrowed more on credit cards in May
News from Atlanta Journal Constitution:

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The Associated Press

WASHINGTON — Americans stepped up their borrowing in May, helped by the largest one-month gain in credit card debt in more than four years. But overall credit card use is still well below where it was just before the Great Recession began.

The Federal Reserve said Monday that consumer borrowing rose by $ 17.1 billion in May from April.

The increase drove total borrowing to a seasonally adjusted $ 2.57 trillion. That’s just below the all-time high of $ 2.58 trillion reached in July 2008, seven months after the recession began.

Borrowing has increased steadily over the past two years. But most of the gain has been driven by auto and student loans. The category that measures activity in those loans increased by $ 9.1 billion in May to a record $ 1.7 trillion

A measure of credit card debt increased by $ 8 billion in May, the biggest one-month jump since November 2…………… continues on Atlanta Journal Constitution

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Joseph E. Stiglitz: American dream buried in student debt
News from Delmarva Daily Times:

America has long prided itself on being a land of opportunity. The American dream, stories of those rising from rags to riches, is etched into our sense of identity. But increasingly, this seems just a myth.

New data released by the Federal Reserve and the Department of Education last month explain why, in the midst of this recession, student debts are becoming an increasing source of concern. The Fed report shows that growing student debt is weighing down more and more Americans, even as credit card debt is falling. Americans have — partially — learned their lesson from abusive credit card practices and pulled back.

While student debt is rising, parents’ ability to pay without resorting to debt is declining. Fed data show the income of the typical American family, adjusted for inflation, declined from 2007 to 2010. Their wealth was down almost 40 percent — back to levels not seen since the early 1990s. Separate data show that household income is back to levels of a decade and a half ago.

Meanwhile, the Education Department released data showing that during the period 2008-10, tuition at four-year public universities was up 15 percent, and in some states, such as Georgia, California and Arizona, up more than 40 percent. This is not a surprise: With states responding to slow growth in tax revenues by cutting back on support for higher education,…………… continues on Delmarva Daily Times

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One More Credit Card Secret

Posted by administrator | 09/07/12 | Tagged Credit Card

One More Credit Card Secret
News from Business Insider:

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Secured Credit Card Receives Top 5-Star Rating from TopConsumerReviews.com
News from Virtual-Strategy Magazine:

The best Secured Credit Cards available today, as revealed by TopConsumerReviews.com

Overland Park, KS (PRWEB) July 09, 2012

TopConsumerReviews.com has released their ratings for the best Secured Credit Cards available today.

A secured credit card provides individuals that suffer from poor credit with a credit card option. Secured credit cards typically are collateralized with a cash deposit. Generally the amount of the cash deposit is the equivalent to the line of credit. Once responsible use of the credit card has been demonstrated by the cardholder, secured credit card companies will often decrease or elminate the collateralization requirements – creating the convenience of having a credit card while also helping to improve a languishing credit score.

How to choose the right secured credit card? Secured credit cards come with different policies and rules. When considering a secure credit card, consumers should compare a variety of factors. Some of the secured credit card differences include collateralization requirements, credit limit, interest rates, annual fees, and more. Independent credit card reviews are a good source of information to help consumers sort through the various secured credit card options.

“Secured credit cards provide consumers that have little to no credit, the…………… continues on Virtual-Strategy Magazine

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