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New Hope on the Credit Card Front
[Jul 19, 2007.]
While the housing market appears to be sluggish and the overall economy may appear to be a mixed blessing, the outlook appears to be bright for credit card companies and their cardholders.
The American Bankers Association reports that the rate of credit card delinquencies is surprisingly good, all things considered. The actual delinquency rate in the first quarter of the year, based on the total amount of money outstanding, is at a 13-year low.
In addition, delinquencies have been decreasing for 3 quarters straight, according to a publication from the American Bankers Association entitled "Consumer Credit Delinquency Bulletin." For the first quarter of 2007, delinquencies based on total amount of money outstanding was 3.46%, as opposed to 3.54% in the fourth quarter and 3.44% for the first quarter of 2006. As far as accounts past-due are concerned, the rate was 4.41% for the first quarter of 2007, 4.56% for the fourth quarter of 2006, and 4.4% last year at this time.
The American Bankers Association considers the improving state of credit card late payments to be astounding, given the problems inherent in the economy as of late. Such troubles as slow job growth, declining home prices, and sluggish economic growth could have wreaked havoc in the households of individual consumers.
Yet, credit card customers are, by and large, paying their bills on time. In fact, there have been statistics to show that people are more likely to pay on their credit card accounts than on their mortgages. It appears that consumers simply don't want to contend with the late fees and additional interest costs associated with paying credit card bills late.
Obviously, the delinquency rates are good news for both consumers and credit card issuers alike. The rates may also be an indication that Americans are acting more responsibly, as far as credit is concerned.
Julie Ann Amos
July 19th 2007
Recent Housing News
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Recent News:
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Despite the fact that the mortgage industry has been suffering horribly across the nation, several individual markets have managed to not only dodge the dropping values of home property in the U.S, but steadily increase in value. At least, the situation has maintained itself that way until recently, when Charlotte, Seattle, and several other cities [...]
[July 4th, 2008] - Foreclosures Open Up Opportunities Just As They Close Them
One growing concern that is on the minds of almost all American home-owners is the looming threat of foreclosure. As the economy continues to struggle with the rising costs of gas and food, and people are afraid of losing their jobs in a market that is seeing some of the highest number of layoffs this [...]
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It is no secret that the credit crunch is on and it is bad. Caused by the fall out of the sub prime mortgage market lenders are far too cautious about lending money to those they deem ‘at risk’ for fear of loosing money. This is causing the current economic down turn that has begun [...]
[July 1st, 2008] - What To Do If You Fear Defaulting On Student Loans
For many, that student loan is the only way to reach that higher education. College is a vital step especially in today’s world where not only skill and experience is valued but so is education. With this in mind, students are using grants, scholarships, and even loans to reach their dreams and to achieve that [...]
[June 30th, 2008] - US Foreclosure Rates at Record High
The US housing market is still experiencing fallouts from the credit crisis, according to information made available earlier today. The Mortgage Banker’s Association has reported on Thursday that the amount of foreclosures has risen by more than 70% during the first quarter of 2008. That data reflects the fact that almost 1% of all mortgages [...]
[June 30th, 2008]
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