January 20th, 2010
Wednesday Trends in Credit Cards & Debt
Reuters reports that credit card charge-offs at major credit card companies are decreasing. Three out of five U.S companies reported declines, including Bank of America, however BofA has the highest default and delinquency rates of the five companies. JPMorgan and American Express report a steady decline in charge-offs.Issuers with the highest percentages of cardholder charge-offs include Bank of America with 13.53%, Capital One with 10.14%, and Discover Financial with 8.68%.
Avoid a charge-off, which will leave a negative mark on your credit report and damage your credit score, at all costs, and keep up with credit card news and debt help with the following roundup:
Credit Card News
- Issuers may be looking beyond credit scores of credit card applicants and into more personal information. SmartMoney writes on this issue and more credit trends for 2010 and the future of plastic.
- Think the balance on your credit card is like any other kind of debt? Think again. Credit Card Guide website explains 4 reasons why credit card debt is different.
- 6 new credit card booby traps on the way reports MSNBC. Look out for more cards with annual fees and unexpected changes in your rewards program.
- The Tennesseean posts an interesting editorial suggesting that the Credit Card Act will bite those it meant to protect.
- Do you make this dangerous credit card mistake? asks Money Under 30. If you have a cash-back or rewards credit card, banks might be baiting you with incentives to make you pay more.
Debt News
- Slash your credit card debt in four simple steps, brought to you by LoveMoney, starting with reducing the cost of your debt.
- WiseBread advises goal-setting in debt to more effectively achieve your debt reduction goals.
- For more debt reduction strategies, Rapid City Journal posted some Q&A from The Credit Guy on what steps are needed to eliminate debt in 2010.
- Heard of the debt buster challenge from Lending Club? Take on a low-interest loan to ditch your debt, and Lending Club will send you a backpack of freebies!
- Is there a “good reason” to go into debt? questions Bible Money Matters. Are there certain things that you want badly enough to make you willing to take on debt?
Dear Justine, thank you for taking the time to post this information. Because you covered many areas on this topic I was able to get most of my answers right here. Thanks again.