credit card use up 8% in one year

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marketexpert
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credit card use up 8% in one year

Postby marketexpert » Fri Jun 27, 2008 8:51 pm

Credit cards and other revolving credit grew over 8% over the last year. This is the biggest increase in 7 years.

The rise is expected to be due to home equity lines of credit no longer being available due to plunging prices. During the first quarter alone $1.2 trillion in American home values was wiped out.

People need another source of liquidity to tap and that source is their credit cards. During 2004 to 2006 when housing was hot credit card use only grew at a rate of 2 to 3 percent. With surging commodity prices, weak job market, and hyper inflation consumers are left with no other choice.

-M.E.


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Mogul of Pineapples
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Postby Mogul of Pineapples » Sat Jun 28, 2008 12:49 pm

I think it's up for a couple reasons. The first one you said but the second I think is because they are starting to accept credit cards for everything now. People pay with them because it's a lot easier than using a checkbook and safer than cash. It seems like the smart thing to do too because you earn rewards with credit cards and you won't get anything when you pay with other methods. I don't think the increase in credit card use is a bad thing.
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marketexpert
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Postby marketexpert » Mon Jun 30, 2008 4:38 pm

Let's not forget a lot of people have been forced to resort to more credit card use because they can't afford gas, food, and healthcare prices.

Like the rest of the country I'm keeping a close eye on this credit crunch to see how it unfolds.

-M.E.

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Postby Floppster » Tue Sep 30, 2008 9:21 pm

marketexpert wrote:Credit cards and other revolving credit grew over 8% over the last year. This is the biggest increase in 7 years.

The rise is expected to be due to home equity lines of credit no longer being available due to plunging prices. During the first quarter alone $1.2 trillion in American home values was wiped out.

People need another source of liquidity to tap and that source is their credit cards. During 2004 to 2006 when housing was hot credit card use only grew at a rate of 2 to 3 percent. With surging commodity prices, weak job market, and hyper inflation consumers are left with no other choice.

-M.E.


That's why so many people are bankrupt... unfortunately
Intellectuals solve problems. Geniuses prevent them.
- Albert Einstein 1879-1955

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Cucumber
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Postby Cucumber » Sat Oct 25, 2008 4:18 pm

But the worst thing is now bankruptcy won't wipe out your debt. It only changes the payment terms. :eek:

That was W's doing. Thanks W! :mad:
OBAMA
Stop talking crap about him!

magyar1045
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Postby magyar1045 » Sun Oct 26, 2008 9:22 am

Cucumber wrote:But the worst thing is now bankruptcy won't wipe out your debt. It only changes the payment terms. :eek:

That was W's doing. Thanks W! :mad:


If folks qualify for Chapter 7 bankruptcies the debts will be completely wiped out. If they don't they will be sentenced to Chapter 13s which is more or less a repayment plan. Repayment payments favor the secured creditors and only small amounts go towards unsecured debts such as credit cards.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Tue Oct 28, 2008 9:57 pm

I thought Bush made it nearly impossible to qualify for Chapter 7?

We need to reverse whatever changes Bush made to the bankruptcy code. It's a real tool many people end up needing. Being that most bankruptcies arise from things like medical bills and disability and unable to work, I would hardly say bankruptcy is abused. I have never heard someone, not even unscrupulous people, say "I want to get into debt so I can file for bankruptcy and wipe it out." This is not what people do.

From what I've read it sounds like 90% plus of the bankruptcies are totally legitimate from circumstances often outside of the person's control i.e. medical, job loss.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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Primary Travel Card: Chase Sapphire Preferred

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Mogul of Pineapples
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Postby Mogul of Pineapples » Tue Oct 28, 2008 10:00 pm

I also thought Bush made it nearly impossible to qualify for Chapter 7?

We need to reverse whatever changes Bush made to the bankruptcy code. It's a real tool many people end up needing. Being that most bankruptcies arise from things like medical bills and disability and unable to work, I would hardly say bankruptcy is abused. I have never heard someone, not even unscrupulous people, say "I want to get into debt so I can file for bankruptcy and wipe it out." This is not what people do.

From what I've read it sounds like 90% plus of the bankruptcies are totally legitimate from circumstances often outside of the person's control i.e. medical, job loss.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

bozell
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Postby bozell » Thu Nov 06, 2008 5:06 pm

i saw on the tv that credit card use is down the past few months. maybe consumers aren't total idiots it looks like they are actually cutting back on their spending!



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