CC Delinquencies Are Increasing As Americans Carry Record Amounts of Debt (pay, rate)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Latest report from NY Fed shows CC delinquencies are on the rise. This coupled with fact interest rates (APR) are at or well above 20% means those carrying balances are getting slammed.
Strong consumer spending is one reason why US economy did not fall into recession many had predicted. Indeed economy has remained strong and one to envy compared to much of Europe and Asia. American consumer however is fast becoming strapped. Interest rates on debt (CC, mortgage, auto) are high and not expected to decline in foreseeable future. Servicing that debt is putting strains on many households.
Latest report from NY Fed shows CC delinquencies are on the rise.
...means those carrying balances are getting slammed.... putting strains on many households.
Imagine the strain for those who don't have a card to have a balance at all.
[quote=BugsyPal;66736470]Latest report from NY Fed shows CC delinquencies are on the rise. This coupled with fact interest rates (APR) are at or well above 20% means those carrying balances are getting slammed.
Depending on your credit agreement may be paying $30-$40 or more each time on late fees. There may be a host of other fees like $2 for paper statements.
Imagine the strain for those who don't have a card to have a balance at all.
Wife noticed the other day that the interest rate on her JCPenney card (Synchrony) is 34.99%. Penalty is 39.99%. It's probably been 15 years since she carried a balance on that card, but she said she'll never use it again just on principle! That does seem excessive.
Status:
"This too shall pass. But possibly, like a kidney stone."
(set 11 days ago)
35,996 posts, read 18,280,610 times
Reputation: 51062
Somehow, we need to get the information out about how to use a credit card. For those who can pay it off every month, without fail, put everything on it as a matter of convenience and the ability to track spending habits. Perfect.
For those who can't pay it off every month, it's a true treasure if you have an expense you can't pay immediately, but is absolutely necessary. Minute Clinic for an infection, purchase of a tire or brake job or car battery, a bare bones run to the grocery store to buy cheap food, etc.
Other than that, no. Never use it to buy luxury items, or restaurant dinners out, or something you don't need to continue to function. For those who can't pay off that month, it's a great tool to keep you from being in a crisis. If used judiciously.
As long as you pay off your full card balance monthly, you never have to worry about interest rates. I could care less if its 24% or 35%. I never carry a balance on a credit card. I pay it off each month and earn reward points. If you reach a stage where you're in a cash crunch (we've all been there), then stop using the cards and use cash or debit cards only for a time until you build up enough backup reserves in your bank account. If you're chronically in a position where credit cards are your only option, you have bigger problems. You need to drastically change your spending and savings habits.
Somehow, we need to get the information out about how to use a credit card. For those who can pay it off every month, without fail, put everything on it as a matter of convenience and the ability to track spending habits. Perfect.
For those who can't pay it off every month, it's a true treasure if you have an expense you can't pay immediately, but is absolutely necessary. Minute Clinic for an infection, purchase of a tire or brake job or car battery, a bare bones run to the grocery store to buy cheap food, etc.
Other than that, no. Never use it to buy luxury items, or restaurant dinners out, or something you don't need to continue to function. For those who can't pay off that month, it's a great tool to keep you from being in a crisis. If used judiciously.
Simple. Don't charge more than you can afford to pay off, and avoid accruing interest at all costs.
Wife noticed the other day that the interest rate on her JCPenney card (Synchrony) is 34.99%. Penalty is 39.99%. It's probably been 15 years since she carried a balance on that card, but she said she'll never use it again just on principle! That does seem excessive.
Most if not all store cards are like that. They offer discount for using them but they come with very high interest rates.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
