Amount of unpaid credit card bills is rising

NEW -> Contingent Buyer Assistance Program
trrenter_IHB

trrenter_IHB

New member
<p><strong>Experts link increase that could threaten economy to housing crisis</strong></p>

<p><a href="http://www.msnbc.msn.com/id/22379989/">http://www.msnbc.msn.com/id/22379989/</a></p>

<p> </p>
 
Big surprise. Looks like the secondary consumer bag holders are going to start taking punches. IMO credit card companies should be able to take everything American Consumers can throw at them for the crazy 30% interest that they charge.
 
Personally, I see no difference between credit card companies and drug dealers. Both provide a product with no intrinsic value that provides a short term sense of gratification leading to even more use.
 
<p>Worth a few minutes to watch -- Howard Davidowitz discusses the crunch on retailers and how "subprime is just the appetizer" - credit cards are the next course. <a href="http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vONKGcIK8kcw.asf">http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vONKGcIK8kcw.asf</a></p>

<p> </p>
 
what you talking about irvinerenter ? i love my CC. i get between 1.5 1nd 5% cash back on everything. no limit. no fees. i NEVER use cash anymore.
 
i cant imagine getting by these days without using a cc. using a cc to make transactions easier, that is, as opposed to using a cc to pay for something with money i dont have.
 
C'mon flmgrip.....IR was talking about people who don't pay off their monthly cc balance, and have trouble with impulse buys.
 
Blue Cash gives you up to 5% cash back with no limit to how much you can earn. Once you spend over $6500 on your Card, you can earn 5% cash back on all your everyday purchases at supermarkets, gas stations and drugstores and 1.5% cash back on all other purchases.<a href="https://www124.americanexpress.com/cards/loyalty.do?page=bluecash.maximize#" onclick="s_objectID="www124.americanexpress.com/cards/loyalty.do?page=bluecash.maximize#_1";return this.s_oc?this.s_oc(e):true">*</a>
 
But studies show that people who pay cash spend, umm, something like 20% less. Spending cash FEELS like really spending money. Comes with a bit of anxiety. Clever these credit card issuers, no? Which is not to say that I am not credit card extravagant sometimes.
 
discipline and you will make up to 5%.... i have not used cash for about 10 years... and i am not spending more than i would have with cash... actually less, just about 5%... hahaha
 
we spend 2-3K on the credit card each month and pay the balance in full each month, if we paid cash, we would have to pull out 2-3K out of the bank at once or make weekly trips to the atm - not very convenient. also, it would be harder to keep track of where the money was spent since all you would have are receipts. using the credit card we can log on and see where our money is being spent. guess it comes down to personal preference. using your credit card though has several advantages such as insurance coverage if items are lost or stolen; membership reward plans, etc.
 
you don't really need a credit card, just get a debit card that doubles as credit (the advantage is that you don't have to enter your pin every time you make a purchase), other than that, it is like having no credit card at all, the balance is deducted from your checking account, you can see where it spent and so on... I have one from bank of america, but I think most banks must have it to
 
There is a down side to being free of credit cards. Your need a good credit history to qualify for a loan or mortgage that has good, competitive terms. Activity on debit cards does not appear on credit reports, and does not contribute to your credit history. When the time comes (2010?) that you want to buy a home, you will want every FICO point you can raise. Having credit cards with balances near the maximum allowable or late pays on any of them obviously lowers your credit score. But having no current credit history, or a short credit history, also lowers your credit score. That may not be fair, but it is a fact. For those without a mortgage, a history of responsible use of credit cards is likely to be the best way to keep a high credit score. If you are planning a future home purchase, pay credit cards in full each month, but don't disappear from the credit bureau files by being a cash only consumer. Of course, those who can't resist the temptation to spend beyond their ability to pay best remain in the cash only situation.
 
My two cents on credit cards, credit, FICO, yadda, yadda, yadda.<p>


Use a credit card only for purchases for which you feel uncomfortable carrying cash. Pay your credit card balance in total every month. Do not try to move balances to game interest rates. Do not borrow at a lesser interest rate in order to loan at a higher interest rate unless you are a bank. Do not carry a balance on a credit card. Do not try to "improve" your FICO score by carrying a balance on a credit card. Do not try to "improve" your credit by borrowing. Do not spend any time or energy trying to improve your FICO score.<p>


Pay cash for your car. If you don't have enough money to pay cash for your car, buy a cheap car or take the bus, or ride a bike. <p>


Do not buy anything you can not pay with money you already have, except a home. When you buy a home and get a mortgage, put down 20% or more, and get a fixed rate 15 year mortgage. Pay off your mortgage early.<p>


Knowing what money is and how money works in your life is more important than knowing how to work money.<p>


Just my two ounces worth.<p>


I wish I knew how to type that euro symbol like Graphrix does.
 
blackacre-seeker, mmmh let's see they debit the money the next day or i can borrow money from my CC for up to 30 days for free and get cash back ? (to you defense, some debit cards give cash back too) why pay for it now... it all comes down to dicipline and knowing how much you can afford... it's seems a lot of people don't have that... with CC's, homes (i'm not gonna bring the kids up again ;) ) etc
 
<p>My house is paid off, but my car isn't!! We have some credit card debt due to my son's wedding, and stuff like a hearing aid. We could pay it off with savings, but prefer not to. I drive the car for many years after I pay it off, so I feel it's ok.</p>

<p>One of the things that' essential is to match maturities; that is, to not be paying for something that's used up already.</p>

<p>I guess if you eat out, it's ok to charge it, if you pay at the end of the month.</p>

<p>And Gollini is right--about 25 years ago, we decided to pay off and get rid of all our credit cards. Then we flew up to Baltimore to visit my mom and discovered we couldn't rent a car. We had to use her card and pay her back in cash.</p>

<p>So then we got credit cards again, and used them only semi wisely. The point is that most people don't have the discipline to really use them wisely.</p>
 
awgee, In a perfect world, I'd be right there with you, paying for stuff with gold coins rather than paper money. But it isn't and I don't. I try to work the credit system to my advantage. The last time I purchased a car (a 'certified pre-owned' Internet special) I could pay cash and fully intended to do so when I drove to the dealership to look at it. Financing was available thru the manufacturer at 2.9%. So I put the cash in an interest-bearing account at about 5% and borrowed the money. Later on, I set up an automatic payment thru the lender, which reduced the payment by an additional $10/month. The lender is responsible for drawing the cash from the account, so I'm not at risk of forgetting a payment and getting a late pay on my credit report. I have an active, favorable, line of credit on my credit report, and that improves my credit score. As the final kicker, when it came time to pay the down payment, I handed them my credit card. $3,000 worth of points accumulated, and paid off with the next credit card bill.
 
Gollini - I do not pay for stuff with gold coins and I do not live in a perfect world either. And neither of those has anything to do with my saying that if one understands what money is and what money is in one's life, it would be unnecessary and undesirable to borrow and accrue interest at different rates or try to improve one's FICO or arrange payments or accumulate points or ...<p>


Anyways, it is just my two oz. worth. There is no need to misrepresent it or take it personally.
 
You must log in or register to reply here.
Back
Top