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Got Goldies
08-26-2010, 03:44 PM
C
Aug 25, 3:32 AM (ET)

By EILEEN AJ CONNELLY
NEW YORK (AP) - The amount consumers owed on their credit cards in this year's second quarter dropped to the lowest level in more than eight years as cardholders continued to pay off balances in the uncertain economy.
The average combined debt for bank-issued credit cards - like those with a MasterCard or Visa logo - fell to $4,951 in the three months ended June 30, down more than 13 percent from $5,719 in the same period a year ago, according to TransUnion.

http://apnews.excite.com/article/20100825/D9HQCE280.html

Deflationary. M3 is deflating like a hot air balloon.

MoMoney
08-26-2010, 03:50 PM
Who's saying we aren't disciplined.
Honestly, I would never doubt the American people...seriously!:)

Got Goldies
08-26-2010, 03:51 PM
Its pretty bizarre. Steal from Peter to pay Paul?


In a twist, Becker said the foreclosure crisis could be helping to improve the timeliness of credit card payments and lower balances. When people don't make mortgage payments, he suggested, they have a short-term cash boost.

"That can provide extra money to pay down credit cards," he said

Ag gnostic
08-26-2010, 04:28 PM
http://apnews.excite.com/article/20100825/D9HQCE280.html

Deflationary. M3 is deflating like a hot air balloon.

Three more years of that & think of how much there is going to be available out there to buy things without charging it.

I think this is something really important to consider.

While I do think there might be some of robbing Peter to pay Paul going on, I think there really might be a lot of people out there paying of debt right now.

avalkyrie
08-26-2010, 05:12 PM
"Besides paying down debt, consumers are getting fewer new cards. Nationwide, the number of new accounts opened dropped almost 6.5 percent from last year."

I also have to wonder if the new figures take into consideration credit card accounts that have been closed, or negotiated down and closed, since the previous report -- sort of like kicking the F students out of school to increase the average GPA.

mespe
08-26-2010, 05:21 PM
"Besides paying down debt, consumers are getting fewer new cards. Nationwide, the number of new accounts opened dropped almost 6.5 percent from last year."

I also have to wonder if the new figures take into consideration credit card accounts that have been closed, or negotiated down and closed, since the previous report -- sort of like kicking the F students out of school to increase the average GPA.

Yeah I read that a high percentage of credit cards are in default. Now If i were to default on a credit card, it wouldn't be for a couple hundred dollars, it would be maxxed out. So the average account balance is over $4,000??? that's unreal, to have that much on a CC, mine gets paid off every month.

Pitcom
08-26-2010, 05:26 PM
Every time i ever use my card it gets paid off immediately. I use their card to get the 2% cash back on all of my purchases. I never carry a balance, and never pay them any interest.

Got Goldies
08-26-2010, 05:30 PM
I borrowed 11K to purchase Kookaburra in NOV of 2008 at 0% and I was in a rush to pay it all off before low rates ended 12 months later. I paid it all off with Peter's money. I never want debt again.

joethebummer
08-26-2010, 05:46 PM
Yeah I read that a high percentage of credit cards are in default. Now If i were to default on a credit card, it wouldn't be for a couple hundred dollars, it would be maxxed out. So the average account balance is over $4,000??? that's unreal, to have that much on a CC, mine gets paid off every month.

i got a LOT more than that on mine....thanks greenspan

nuts4gold
08-26-2010, 05:46 PM
I borrowed 11K to purchase Kookaburra in NOV of 2008 at 0% and I was in a rush to pay it all off before low rates ended 12 months later. I paid it all off with Peter's money. I never want debt again.

Kookaburra the bird or do they have some type of bullion by that name?

Givemegold
08-26-2010, 10:35 PM
Well if I had choices to make like pay my credit cards or mortgage, I would have to go with the credit cards. At least I can pay my electric bill and buy food and stuff. If people cannot afford their mortgage, they have come to the realization why donate any more money to the bank. People are going to get at least 12 to 16 months free rent before you get foreclosed upon. So why not pay off your credit card debt and save some money for when you have to move out. At least you can use a credit card for something if you have to. A lot of good a mortgage payment will do in an emergency. Why donate to the bank when it is a lost cause. Take that mortgage payment and pay off your credit card debt.