Americans behind on credit card payments at an alarming rate

[dramama]

The value of credit card accounts at least 30 days late jumped 26 percent to $17.3 billion in October from a year earlier at 17 large credit card trusts examined by the AP. That represented more than 4 percent of the total outstanding principal balances owed to the trusts on credit cards that were issued by banks such as Bank of America and Capital One and for retailers like Home Depot and Wal-Mart.

At the same time, defaults - when lenders essentially give up hope of ever being repaid and write off the debt - rose 18 percent to almost $961 million in October, according to filings made by the trusts with the Securities and Exchange Commission.

Serious delinquencies also are up sharply: Some of the nation's biggest lenders - including Advanta, GE Money Bank and HSBC - reported increases of 50 percent or more in the value of accounts that were at least 90 days delinquent when compared with the same period a year ago.

http://apnews.myway.com/article/20071223/D8TNBH780.html

[Issachar]

Wait until the 3rd week of January.

Issachar

[Khristy1]

Wait until the 3rd week of January.

Issachar

more wisdom please!

[Waiting...]

more wisdom please!

I am assuming he means that is when all of the credit card bills from the Christmas shopping comes in the mail. That is when all of those who overextended themselves will begin to feel the pain.

[Bernardd]

NORTH COUNTY ---- One of the country's largest banks caused a storm of controversy when it recently began issuing credit cards to people without Social Security numbers, most of whom are believed to be illegal immigrants.

Financial analysts say that many banks have been lending to illegal immigrants since the Treasury Department released regulations, under the anti-terrorism Patriot Act, saying that financial institutions could accept identification cards issued by foreign governments, including Mexico's card, called the matricula consular.
http://www.nctimes.com/articles/2007/02/25/news/top_stories/20_25_502_24_07.txt


MILWAUKEE — Javier and Araceli Garcia, illegal immigrants from Mexico, never imagined that the U.S. government would help them realize their dream of owning a home.

But last year, the couple secured a $54,600 mortgage to buy the gray, 1,158 square foot bungalow that they had been renting for eight months. The Wisconsin housing authority financed the loan. The Internal Revenue Service gave them an identification number that enabled them to apply for it at local Mitchell Bank, which was happy to take their business.

http://econedge.org/29/mortgage-loans-for-illegal-aliens/

[RememberTheName]

Hmm. I can't be one of those behind on payments... partly because I don't have a credit card. I use my DEBIT card all the time, but I don't think it's smart to take out loans or get credit unless you have the cash to back it up.

[Issachar]

I am assuming he means that is when all of the credit card bills from the Christmas shopping comes in the mail. Yes. Thank you.

RememberTheName; Yes! What you said. :)

Issachar

[vhowell]

Yeah, it's not just from Christmas spending, though.......

My sister is behind on 3 of her credit cards. She runs a construction business, and her work has slowed down 70% in the past 6 months. So, no work = no income.....she is desperatly trying to keep her business afloat, she's done it for 25 years. But due to the sub-prime mess the construction in her area has just STOPPED...

I really feel for people like her.....

[frodo82801]

Credit cards are evil. Evidently, people are learning this because about 2 or 3 years ago, the number of bank cards surpassed the number of credit cards.

This down turn or correction will teach a lot of people valuable lessons. Some will fall due to nothing they did, but a lot of stupidity will be accounted for.