Americans cranked up their use of credit cards in the third quarter, racking up more debt than a year ago, while also being less diligent about making payments on time. But though delinquency is rising, it's still significantly below historic norms.
Lately, the banks that issue credit cards have seen some big improvements in the way their customers have been handling their bills. But no surprise -- the card companies aren't repaying the favor.
Oops! You open your credit card statement and discover you forgot to make last month's payment. Or a collections agency calls about a bill you didn't even know you had. How bad is it? How much does a single late payment affect your credit score?
In the last few years, outreach events by banks and nonprofits have been held all over the country, offering help to distressed homeowners. But even when they get personal invitations to these events, the vast majority of people who need mortgage modifications or short sales aren't showing up.
Credit is ever so personal, and ultimately it's your responsibility -- but it's not solely about you. Your state's creditworthiness can impact you too. For that reason, CardRatings.com's recently released rankings of the 10 Best and Worst States for Consumer Credit is worth a look-see.
Capital One's credit card charge-off rate -- the percentage of debt that it's unable to collect -- fell to 4.97% in April. That's the lowest default rate for the company since 2007. See why there might be some upside potential for the stock.
Research shows that what our parents teach us about money lays an important foundation for our future financial fitness, and the anecdotal evidence is just as strong. So if you're a rainy-day saver or a coupon clipper, you probably have mom to thank.
Bank of America credit card holders, beware. If you're late on a monthly payment, that little "oops" might become a big "ouch": Your future balances could be subject to a penalty rate of nearly 30%. But the penalty rate will not be applied to previous balances.
Before the Great Recession, U.S. consumer debt had risen fairly steadily for more than a decade. With the downturn, it finally dropped...until December's small rise. However, a longer look at the trend of ever-rising debt shows that America is still extraordinarily overextended.
Fewer Americans received home-loan modifications under the Obama administration's program to reduce foreclosures and delinquencies. More owners with modifications flunked out.
As job losses mount, a growing number of consumers are falling behind on their credit-card payments. The percentage of credit-card balances that lenders have written off as uncollectable has risen, suggesting even higher levels of delinquency and charge-offs ahead in 2010.
