Five of the six largest U.S. issuers of credit cards reported a drop last month in then percentage of credit-card balances deemed uncollectable. The drop suggests consumers may be making headway in their efforts to pay off their debts.
Not long ago, DailyFinance's Hugh Collins -- a 28-year-old, Belfast-born U.S. resident -- had yet to experience a truly American phenomenon: owning a credit card. Once he finally secured one, though, he quickly discovered the immense power, allure -- and danger -- of plastic.
Discover Financial Services posted a fiscal third-quarter profit that fell less than analysts had expected. Sales from its eponymous credit card grew 5% from a year earlier as falling interest rates spurred more usage and as more merchants started accepting the card.
Four of the top six credit card issuers reported an increase in the number of debts they they wrote off as uncollectable in August. But there were a few positive signs as well.
Credit card use plunged for the sixth straight month in July, with total consumer debt falling by $3.6 billion, or 1.75%, the U.S. Federal Reserve announced Wednesday.
Several data points this week confirm an ominous new trend among desperate consumers: They have stopped paying their mortgages but they're continuing to pay off their credit cards so they can keep buying staples, like food.
Increased consumer spending helped boost second quarter earnings for credit card giant American Express Thursday, which reported a $1 billion profit, nearly tripling the $337 million it reported for the a year ago quarter.
The estimated $48 billion that merchants pay to banks and credit card companies for the use of those ubiquitous terminals is at stake as Congress considers a proposal that could limit the fees incurred every time you swipe.
