Credit cards suck

[scamper]

Gas Prices Blamed for Late Credit Payments By JEANNINE AVERSA, AP Economics Writer
1 hour, 32 minutes ago



WASHINGTON - The percentage of credit card payments that were past due shot up to a record high in the second quarter as surging gasoline prices strained budgets and made it difficult for some people to pay their bills.


The American Bankers Association reported Wednesday that the seasonally adjusted percentage of credit card accounts 30 or more days past due rose in the April-to-June quarter to 4.81 percent. That followed a delinquency rate of 4.76 percent in the first quarter and was the highest since the association began collecting this information in 1973.

"The rise in gas prices is really stretching budgets to the breaking point for some people," the association's chief economist, Jim Chessen, said in an interview. "Gas prices are taking huge chunks out of wallets, leaving some individuals with little left to meet their financial obligations."

While Chessen mostly blamed high gasoline prices for the rise in credit card delinquencies, other factors also played a role, he said.

With personal savings rates dismally low, people have less of a cushion to absorb the big jumps in energy prices, Chessen said. The personal savings rate dipped to a record low of negative 0.6 percent in July.

Rising borrowing costs also probably contributed to the spike in credit card delinquencies, he said.

The Federal Reserve has been tightening credit since June 2004. That has caused commercial banks' prime lending rate to rise to 6.75 percent, the highest in four years. These rates are used for many short-term consumer loans, including some credit cards and popular home equity lines of credit.

After Hurricane Katrina, gasoline prices jumped past $3 a gallon before calming down. Although damage to oil facilities was less than feared from Hurricane Rita, economists expect gasoline prices to stay high.

The double blow from the two hurricanes is expected to slow overall economic activity and hiring in the months ahead, economists say.

Against this backdrop, credit card delinquencies are likely to remain high in the coming quarters, Chessen suggested.

The association's survey also showed that the delinquency rate on a composite of other types of consumers loans, including auto loans and home equity loans, climbed to 2.22 percent in the second quarter, up from 2.03 percent in the first quarter.



http://news.yahoo.com/s/ap/20050928/ap_on_bi_ge/late_loans

[scamper]

I just posted this as an example of why you shouldn't buy on credit unless necessary, you never know when something is going to happen.

[Cathedral]

The leading cause of bankruptcy by credit card is careless spending.
I have 12 different credit cards, yes, 12, and i have never had any problems paying my bills.

Though i strongly urge against it, making the minimum payment on average isn't that bad unless you have an insane high credit limit and have it maxed out.
I personally don't ever go above $5,000 on any given card and i rotate them.
Only 3 have an outstanding balance at any given time and i typically use the lowest interest bearing cards.

By having so many cards i can juggle my debt from card to card in what they call a "Balance Transfer".
That way if you get into a tight spot you can make sure you keep the bills paid on time.

But you have to spend responsibly and not look at a credit card as free money as so many do.
I just paid off last Christmas, and it's coming up again.

The key is not to live above your means.
I live on the edge but not enough to go over and spiral out of control should something go wrong as it did a couple of days ago.
Gas prices suck and are on the rise again, but if you remain frugal, you can adjust with no problem.

I have no sympathy for people who aren't in full control of their debt.
getting credit is one of the easiest things to do, maintaining it and keeping it in good standing is a bit tougher.

However, the President going public telling me to conserv when the government remains spend happy is insulting.
We are the one's paying for their spending and conservation should begin in Washington before they come telling me when to cut back at home.
I know what i can and can't afford, and i also know we can't afford this President's spending habits.

This Administration is fiscally inept and morally bankrupt.

[scamper]

Granted there are times when you have to use a credit card to pay for thing, but whatever happened to saving up the money before whipping out the plastic. Credit used to be something you didn't want to use.

[Nickdfresh]

Originally posted by scamper
I just posted this as an example of why you shouldn't buy on credit unless necessary, you never know when something is going to happen.

http://www.brillig.com/debt_clock/debtiv.gif

U.S. NATIONAL DEBT CLOCK (http://www.brillig.com/debt_clock/)

The Outstanding Public Debt as of 28 Sep 2005 at 07:37:24 PM GMT is:
$ 7 , 9 3 8 , 3 7 8 , 8 3 7 , 8 4 7 . 2 6

The estimated population of the United States is 297,288,809
so each citizen's share of this debt is $26,702.58.

The National Debt has continued to increase an average of
$1.54 billion per day since September 30, 2004!

Good point! Maybe someone should tell Dubya about that?

[scamper]

Originally posted by Nickdfresh
http://www.brillig.com/debt_clock/debtiv.gif

U.S. NATIONAL DEBT CLOCK (http://www.brillig.com/debt_clock/)

The Outstanding Public Debt as of 28 Sep 2005 at 07:37:24 PM GMT is:
$ 7 , 9 3 8 , 3 7 8 , 8 3 7 , 8 4 7 . 2 6

The estimated population of the United States is 297,288,809
so each citizen's share of this debt is $26,702.58.

The National Debt has continued to increase an average of
$1.54 billion per day since September 30, 2004!

Good point! Maybe someone should tell Dubya about that?


scary stuff

[Cathedral]

Originally posted by scamper
Granted there are times when you have to use a credit card to pay for thing, but whatever happened to saving up the money before whipping out the plastic. Credit used to be something you didn't want to use.

That used to be true, but in todays society you have to have credit to do anything.
And if you don't establish some, forget about buying a home or a car, or anything substantial for that matter.

Credit to me should be for things of that nature.
I see people using credit cards at McDonalds, and that's just crazy to pay interest on a freakin' Big Mac.

But the big kicker is that your credit score determines what your interest rate will be and if you don't have a credit rating you'll pay out the ass in interest if you can get a loan at all.

I've worked very hard to get my rating as high as possible, and i never pay the minimum payment due.
At the very least you should try to pay twice the minimum because over time that helps improve the score by up to 20 points, or more.

[scamper]

Originally posted by Cathedral
That used to be true, but in todays society you have to have credit to do anything.
And if you don't establish some, forget about buying a home or a car, or anything substantial for that matter.

Credit to me should be for things of that nature.
I see people using credit cards at McDonalds, and that's just crazy to pay interest on a freakin' Big Mac.

But the big kicker is that your credit score determines what your interest rate will be and if you don't have a credit rating you'll pay out the ass in interest if you can get a loan at all.

I've worked very hard to get my rating as high as possible, and i never pay the minimum payment due.
At the very least you should try to pay twice the minimum because over time that helps improve the score by up to 20 points, or more.

Very true, but aren't bank loans the best way to build credit rating, although I've heard that if your coming out of bankruptcy one of the few ways you can start building your rating back up is by using credit cards and making sure you pay off your monthly balance.

[Cathedral]

Bank Loans are a great way to build a credit score over the long term, but it isn't so great for young people starting out.
Revolving credit accounts, with low balances mind you, have more immediate impacts on the score.

I got a much better rate on my first home because I had a Visa card when i was 18 and kept it paid up every month.
I'd use it, then pay off the balance when the bill came.

That made a huge difference on my first home, plus there were first time buyer benefits that also halped.
But if my rating had been at zero, or negative i wouldn't have qualified for that program without a substantial down payment.

I didn't even need a down payment for that loan, but the type of loan makes a difference as well.
That particular house had an assumable loan where the original buyers initial down payment was applied to mine and i just took over the payments.
When i sold that house my score soared, lol. and i walked away with enough in equity to buy whatever the hell i wanted to buy.

Cards can help you as well as hurt you.
If i ever have any trouble paying a bill i'll shred the card so i don't make it any worse.

Actually, a car loan will do more to raise a credit score than a credit card right out of bankruptcy.
Car loans are easier to get also, though the interest rate will be kind of high. a 3 year car loan paid on time every month can have a positive effect of 300+ points, higher or lower depending on the value of the loan.

The bottom line is to pay your bills on time no matter what kind of account it is, lol.
It will all fuck us if we get in too deep.

[knuckleboner]

Originally posted by Cathedral
I see people using credit cards at McDonalds, and that's just crazy to pay interest on a freakin' Big Mac.



eh, i use my credit card for nearly everything that i can. i always pay it off in full at the end of the month, so technically, i'm MAKING money, since i get a short-term, interest free loan. the money i use to pay off the credit card bill earns interest in an account during that month.


mind you, if you're not paying off your bill in full each month, then i totally agree: buying ticky-tack items like that on credit is moronic.

[stringfelowhawk]

Try being in the Navy at sea. You can't buy a freakin coke without paying for it with a card. NO I'M NOT JOKING. You can't buy a stamp, a snickers, a bar of soap or right guard. God forbid you have something like CASH! There's nowhere to spend it.
Back on subject.... I used to have 5 cards. I used to be financially well off even on enlisted pay because I never lived above my means. I was well enough off I decided to buy a house. I'm single and get NO other special pay but put enough back that it covered all the move in costs and utility transfer fees etc. Now, I worked hard to keep my credit in good standing for so long. I made one mistake when I bought my house. I DID NOT RESEARCH THE BUILDER!!!! I got info on my neighborhood, my plumbing (it was disclosed I have Quest pipes which are illegal to use now), I checked my property taxes, flood zone, association rules and regs, schools, I checked to find out what noise zone I'm in because I live so close to a Master Jet Base. I did everything I could think of. The day after I closed, I started to move in. I came to my "new" house as soon as I signed the paperwork to I decided to do a final walk through and decide where I wanted to put my things as I moved in. I did not sleep here but I should have. The "association" sent someone to cut my grass as a moving in welcome. I know this because my next door neighbor told me. I had to be here at 0700 the next morning so my security system could be installed so I brought my first load at that time. I got here and walked in, the first damn thing I noticed is i'm missing a pane in my sliding glass door that goes to the patio. It was shattered. My neighbor heard it and saw one of the grounds crew rushing out the back yard. I called the association and the seller to tell them and the only thing I got in return is "We are not responsible because you already signed the paperwork." And, "We didn't have anyone cut your grass yesterday"!
So, I spent almost $200 to fix my glass door the day I moved in and have had 7, YES 7, leaks since I moved in on August 29, 2001. Why did I have 7 leaks? Because my hot water heater is in the attic and was built in during construction. In order to replace it, I'm gonna have to cut a hole in my roof to take the old one out, then replace it. I WILL NOT be putting another one in the attic. I will put it in the garage. Only one of those leaks was caused by my AC unit. The other 6 were my hw heater and the Quest pipes used. Each time, it sprang a leak it cost me $99 just to have someone come out plus whatever it costs to fix it and that was the cheapest I could find. I got rid of all but 1 of my cards because my savings went right down the drain if you'll pardon the pun. When it was gone I had to use cards and 6 leaks over the course of 18 months can cost a bundle. The first leak caused me to have to throw away almost 20 lbs of insulation and it was leaking through my ceiling in my master bathroom down to my dining room right down the chandalier electrical socket. That repair is $2000 by itself. I had it scheduled to be done twice and within the time I scheduled it and the time it was supposed to be done I got another fuckin leak that would have made me have to repair it again if I'd had it done so I have a hole in my dining room ceiling that is ugly but I ain't getting it fixed till I'm sure I'm not gonna have another one. I had to get an equity loan to fix the last leak cause the deductible is $2000 after Hurricane Isabel hit. If that's not ironic enough for ya. One of my leaks happened the DAY before the hurricane and I had to have it fixed that day so I could finish preparing by filling my tubs and sinks. I had plenty of bottled water for myself and my dog but I'm from Fla so I take hurricanes seriously. If it had happened during the hurricane I wouldn't have had to pay the deductible because USAA waived them for everyone in the area.
When I paid off my cards and cut em up I had NO car payment.. Both of my vehicles were paid off so those payments were going right into my savings account. This past March I could have gotten a new car when I decided to sell mine but I decided, Why have that extra payment ya know? Then my truck engine needed to be fixed. I could have paid $2300 to fix that engine cause it was time to replace my intake manifold gasket, rings, valves etc. Its a 93 GMC Sierra with over 152,000 miles on it and its all original. A brand new same model Jasper crate engine was only $3000 with 36 months and 36,000 so it seemed more economical and came with a better warranty. I went for the new one. Then my tranny blew a seal and like i said, its all original so I had to have that done. More economical to buy a new Jasper. Some of that I had in savings but not enough to cover it all including labor so had to borrow. I only keep my one card for emergencies and I could have used it then but I got a 0.0% interest and that card is low interest but how you gonna beat that? I'd rather pay back that 0.0% loan that have a new car loan. After the engine replacement I know its not gonna go on me and even if it did I won't have to pay for it with that warranty. Just made sense to me.

I will never buy a Big Mac with a credit card.

[Cathedral]

Originally posted by knuckleboner
eh, i use my credit card for nearly everything that i can. i always pay it off in full at the end of the month, so technically, i'm MAKING money, since i get a short-term, interest free loan. the money i use to pay off the credit card bill earns interest in an account during that month.


mind you, if you're not paying off your bill in full each month, then i totally agree: buying ticky-tack items like that on credit is moronic.

Exactly, but i know those who just keep adding to the debt and never pay it off.
I carry a balance on 3 cards, but until next march they are interest free. they'll all 3 be at zero by then.
That's why i have so many cards, lol.
I stop using them after the interest free year and they eventually contact me and lower it to my satisfaction just to get me using it again.

Funny how they tell me no when i request a lower rate, but hunt me down when i stop spending on their plastic to negotiate with me, lol.

[Cathedral]

Originally posted by stringfelowhawk
Try being in the Navy at sea. You can't buy a freakin coke without paying for it with a card. NO I'M NOT JOKING. You can't buy a stamp, a snickers, a bar of soap or right guard. God forbid you have something like CASH! There's nowhere to spend it.
Back on subject.... I used to have 5 cards. I used to be financially well off even on enlisted pay because I never lived above my means. I was well enough off I decided to buy a house. I'm single and get NO other special pay but put enough back that it covered all the move in costs and utility transfer fees etc. Now, I worked hard to keep my credit in good standing for so long. I made one mistake when I bought my house. I DID NOT RESEARCH THE BUILDER!!!! I got info on my neighborhood, my plumbing (it was disclosed I have Quest pipes which are illegal to use now), I checked my property taxes, flood zone, association rules and regs, schools, I checked to find out what noise zone I'm in because I live so close to a Master Jet Base. I did everything I could think of. The day after I closed, I started to move in. I came to my "new" house as soon as I signed the paperwork to I decided to do a final walk through and decide where I wanted to put my things as I moved in. I did not sleep here but I should have. The "association" sent someone to cut my grass as a moving in welcome. I know this because my next door neighbor told me. I had to be here at 0700 the next morning so my security system could be installed so I brought my first load at that time. I got here and walked in, the first damn thing I noticed is i'm missing a pane in my sliding glass door that goes to the patio. It was shattered. My neighbor heard it and saw one of the grounds crew rushing out the back yard. I called the association and the seller to tell them and the only thing I got in return is "We are not responsible because you already signed the paperwork." And, "We didn't have anyone cut your grass yesterday"!
So, I spent almost $200 to fix my glass door the day I moved in and have had 7, YES 7, leaks since I moved in on August 29, 2001. Why did I have 7 leaks? Because my hot water heater is in the attic and was built in during construction. In order to replace it, I'm gonna have to cut a hole in my roof to take the old one out, then replace it. I WILL NOT be putting another one in the attic. I will put it in the garage. Only one of those leaks was caused by my AC unit. The other 6 were my hw heater and the Quest pipes used. Each time, it sprang a leak it cost me $99 just to have someone come out plus whatever it costs to fix it and that was the cheapest I could find. I got rid of all but 1 of my cards because my savings went right down the drain if you'll pardon the pun. When it was gone I had to use cards and 6 leaks over the course of 18 months can cost a bundle. The first leak caused me to have to throw away almost 20 lbs of insulation and it was leaking through my ceiling in my master bathroom down to my dining room right down the chandalier electrical socket. That repair is $2000 by itself. I had it scheduled to be done twice and within the time I scheduled it and the time it was supposed to be done I got another fuckin leak that would have made me have to repair it again if I'd had it done so I have a hole in my dining room ceiling that is ugly but I ain't getting it fixed till I'm sure I'm not gonna have another one. I had to get an equity loan to fix the last leak cause the deductible is $2000 after Hurricane Isabel hit. If that's not ironic enough for ya. One of my leaks happened the DAY before the hurricane and I had to have it fixed that day so I could finish preparing by filling my tubs and sinks. I had plenty of bottled water for myself and my dog but I'm from Fla so I take hurricanes seriously. If it had happened during the hurricane I wouldn't have had to pay the deductible because USAA waived them for everyone in the area.
When I paid off my cards and cut em up I had NO car payment.. Both of my vehicles were paid off so those payments were going right into my savings account. This past March I could have gotten a new car when I decided to sell mine but I decided, Why have that extra payment ya know? Then my truck engine needed to be fixed. I could have paid $2300 to fix that engine cause it was time to replace my intake manifold gasket, rings, valves etc. Its a 93 GMC Sierra with over 152,000 miles on it and its all original. A brand new same model Jasper crate engine was only $3000 with 36 months and 36,000 so it seemed more economical and came with a better warranty. I went for the new one. Then my tranny blew a seal and like i said, its all original so I had to have that done. More economical to buy a new Jasper. Some of that I had in savings but not enough to cover it all including labor so had to borrow. I only keep my one card for emergencies and I could have used it then but I got a 0.0% interest and that card is low interest but how you gonna beat that? I'd rather pay back that 0.0% loan that have a new car loan. After the engine replacement I know its not gonna go on me and even if it did I won't have to pay for it with that warranty. Just made sense to me.

I will never buy a Big Mac with a credit card.

Damn dude, that's getting hit like a mother fucker.
But i would have sued the previous owners for failing to disclose the existing problems, we call that "Seller Fraud" here in Ohio.
My brother and I bought an investment property with similar issues in '91 and we had our lawyer send them the bill for the repairs...they bitched about it, but decided to pay the bills when the word "Court" was mentioned.

Good move with the Jasper engine and tranny, their shit is solid.
I had both in a '79 Grand Prix when the 301 blew up, the tranny was already slipping so it all got replaced.
I just hate the color green, lol, had to change that shit.

[Terry]

However, the President going public telling me to conserv when the government remains spend happy is insulting.
We are the one's paying for their spending and conservation should begin in Washington before they come telling me when to cut back at home.
I know what i can and can't afford, and i also know we can't afford this President's spending habits.

This Administration is fiscally inept and morally bankrupt. [/B][/QUOTE]

Problem with it is GW Bush is the last person to be asking others to practice personal responsibility. The guy insists on being held accountable for none of the problems facing us; it's always the fault of the previous administrations or forces beyond his control. The buck never stops with him, or anyone else in his administration, it seems. And the guy has no compunctions about blaming his cronies and throwing them to the wolves when it looks like he may be held to task for his actions, or lack thereof. He's like a more cowardly version of Richard Nixon when it comes down to it.

W has no accountability. I expect more than that from my president.