September 8th, 2010
Wednesday Trends in Credit Cards & Debt
Here’s a dose of good news for consumers and bad news for issuers: Credit spending is declining as “cautious consumers” pick debt over credit, going with the mantra to pay now instead of later, reports NewsWeek. Credit card use in 2009 fell to an all-time low of 56%, as compared to 97% back in 2007, and is projected to continue dipping to 45% at the end of 2010.
Consumers are wising up and becoming reluctant to spend money they don’t have, as opposed to the pre-recession highs of excessive credit use and overspending. Consumers are switching to alternative payment methods like debit, cash, prepaid cards, gift cards, and more. Its a serious revenue fall for issuers, but a positive step for consumers fixing to be credit card debt-free.
Today’s roundup is loaded with useful and interesting information and advice on credit cards and debt, fresh-picked from blogs and news around the web.
Credit Card News
- Bankrate lists the 5 cities with the most credit cards and the 5 cities with the least credit cards. Did your city make either list?
- Bankrate also discusses Should You Carry Multiple Cards?
- Free From Broke makes it plain and simple in this cool infographic that Buying Stuff On Credit Is Expensive.
- Build A Professional Relationship With Your Banker, suggests MoneyNing. They don’t have to be your enemy; having a good relationship with your bank can benefit you and your account.
- Have an awesome rewards credit card? If you’ve earned rewards and are ready to redeem, first read WiseBread’s Pitting Airline Against Hotel Rewards to help make the most of your card.
- Read what one East Coast college is doing to help young consumers in CNN Money’s, N.Y. Colleges To Protect Students On Credit Cards.
Debt News
- 20 Basic Steps To Keeping Bad Debt At Bay, from Financial Highway, reminds you to keep your finances in check.
- Len Penzo blogs 10 Key Characteristics of Debt-Free People; anything fit your description?
- The ‘Obama debt relief’ scam, from MSN Money, warns you of shady debt settlement companies to avoid and how to settle the right way.
- Check out these fascinating stories from The New York Times about brave couples dealing with money issues in, How Debt Can Destroy A Budding Relationship.
- Need some help organizing debts? Squawkfox can help with the Dig Yourself Out With The Debt Reduction Spreadsheet.
- 10 Ways To Get Out Of Debt Starting Now, from Saving To Inve$t, shares smart tips like 2.) You don’t NEED a credit card.
Credit spending is going down but if it were up to the gov’t it would be going up to bolster company profits and boost the economy. We’ll even out though in time.
I agree because I have or had a credit card. I enjoyed using the ability to buy something credit but with the way the economy is going I don’t like to have that gap between my money and the payment.
You really never know what tommorrow is going to bring.
I agree with that. I have some bad credit of my own.