Credit card debt up, but late-payment rate still low

Posted by administrator | 14/08/12 | Tagged Credit Card Debt

Credit card debt up, but late-payment rate still low
News from CBS News:

(AP) LOS ANGELES – Americans are carrying more credit card debt than a year ago, yet the late-payment rate for card holders remains near an 18-year low, an analysis of consumer-credit data shows.

The average credit card debt per borrower in the U.S. grew about 6 percent in the second quarter from a year earlier, credit reporting agency TransUnion said Tuesday.

At the same time, the rate of payments at least 90 days overdue inched higher to 0.63 percent from 0.60 percent in the same period last year, when the rate hit the lowest level in 18 years. Card delinquencies sank to 0.56 percent in the third quarter of 1994, the firm said.

The April-to-June figures reflect how consumers have been managing their credit card use since the start of the last recession toward the end of 2007.

Many borrowers have taken steps to save money and whittle down their debt. Among homeowners with a mortgage, many have made credit card bills a priority over their home loans and other financial obligations.

While late payments hover near lows not seen since the 1990s, cardholders have been racking up more debt.

In the second quarter, the average credit card debt per borrower rose 6 percent from a year earlier to $ 4,971, TransUnion said.

That’s still about 13 percent less than $ 5,719, the average credit card debt per borrower in the second quarter…………… continues on CBS News

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Related News:

Worse than credit cards
News from Columbia Daily Tribune:

All of a sudden, it seems, Americans owe more in student loans than credit card debt. College debt is exceeding $ 1 trillion for the first time, but at the same time politicians debate how to make it easier by keeping existing caps on student loan rates.

More interesting to me is the unsustainable trend of student debt and the associated cost pressure closing in on higher education and all the other elements of our good life that we have always taken for granted.

Subsidies and cheap loans can’t keep up with college costs that rise faster than inflation. Job prospects for college grads are worse than back in the days when college debt seemed like a better investment. By some estimates, up to half of recent college grads can’t find work in fields they trained for. They end up with big debts and without the higher-paying jobs they counted on.

This is a tough equation with no easy answer. Educators and politicians struggle to fund higher education from diminished public budgets. College administrators fight to cover growing costs without hiking tuition costs too much, straining student aid budgets.

How can the goal of universal higher education be met? Does it make sense to assume higher education is essential to good employment for the masses?

As long as we could push growing numbers of students into higher education wit…………… continues on Columbia Daily Tribune

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Debt


Before there was money, there was debt Every economics textbook says the same thing: Money was invented to replace onerous and complicated barter systems—to relieve ancient people from having to haul their goods to market. The problem with this version of history? There’s not a shred of evidence to support it. Here anthropologist David Graeber presents a stunning reversal of conventional wisdom. He shows that for more than 5,000 years, since the beginnings of the first agrarian empires, humans have used elaborate credit systems to buy and sell goods—that is, long before the invention of coins or cash. It is in this era, Graeber argues, that we also first encounter a society divided into debtors and creditors. Graeber shows that arguments about debt and debt forgiveness have been at the center of political debates from Italy to China, as well as sparking innumerable insurrections. He also brilliantly demonstrates that the language of the ancient works of law and religion (words like “guilt,” “sin,” and “redemption”) derive in large part from ancient debates about debt, and shape even our most basic ideas of right and wrong. We are still fighting these battles today without knowing it. Debt: The First 5,000 Years is a fascinating chronicle of this little known history—as well as how it has defined human history, and what it means for the credit crisis of the present day and the future of our economy. From the Hardcover edition.
List Price:
Price: 32.00

Number of new credit cards issued up 4 pct in 2Q

Posted by administrator | 14/08/12 | Tagged Credit Card

Number of new credit cards issued up 4 pct in 2Q
News from Sacramento Bee:

Americans are carrying more credit card debt than a year ago, yet the late-payment rate for card holders remains near an 18-year low, an analysis of consumer-credit data shows.

The average credit card debt per borrower in the U.S. grew about 6 percent in the second quarter from a year earlier, credit reporting agency TransUnion said Tuesday.

At the same time, the rate of payments at least 90 days overdue inched higher to 0.63 percent from 0.60 percent in the same period last year, when the rate hit the lowest level in 18 years. Card delinquencies sank to 0.56 percent in the third quarter of 1994, the firm said.

The April-to-June figures reflect how consumers have been managing their credit card use since the start of the last recession toward the end of 2007.

Many borrowers have taken steps to save money and whittle down their debt. Among homeowners with a mortgage, many have made credit card bills a priority over their home loans and other financial obligations.

While late payments hover near lows not seen since the 1990s, cardholders have been racking up more debt.

In the second quarter, the average credit card debt per borrower rose 6 percent from a year earlier to $ 4,971, TransUnion said.

That’s still about 13 percent less than $ 5,719, the average credit c…………… continues on Sacramento Bee

… Read the full article
.

Related News:

Yuma man arrested in credit card theft case
News from Yuma Sun:

A Yuma man has been arrested in connection with the use of multiple credit cards numbers obtained from the grocery store where he worked.

According to Sgt. Leanne Worthen of the Yuma Police Department, detectives arrested 41-year-old Nassar Alwan on Thursday at the A&A Market, 595 W. 1st Street, on charges of theft of a credit card involving two other cases.

Worthen said the investigation into Alwan began in May 2012 and revealed that he allegedly had used a victim’s credit card to pay bills. He reportedly also used the victim’s credit card again in June to purchase groceries.

According to Worthen, detectives obtained two search warrants, executing one at the A&A Market and the other at Alwan’s home, where more than 20 additional credit card numbers were allegedly found written down.

Worthen said Alwan was an employee of A&A Market and had access to customer’s credit card numbers when they were making purchases on items bought at the store.

Alwan was later booked into the Yuma County Detention Center on charges of fraudulent schemes, aggravated identity theft, theft of a credit card, fraudulent use of a credit card, and theft.

Because there still may be additional victims, Worthen said the Yuma Police Department encourages anyone who may have been a recent customer at A&A Market and used a debit or credit card, to che…………… continues on Yuma Sun

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