Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

NYT/AP: Gas Prices Blamed for Late Credit Payments

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
 
DeepModem Mom Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 08:27 AM
Original message
NYT/AP: Gas Prices Blamed for Late Credit Payments
Gas Prices Blamed for Late Credit Payments
By THE ASSOCIATED PRESS
Published: September 28, 2005


WASHINGTON (AP) -- 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....


http://www.nytimes.com/aponline/business/AP-Late-Loans....
Printer Friendly | Permalink |  | Top
Coastie for Truth Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 08:30 AM
Response to Original message
1. The "Bush Recession" is starting.
Printer Friendly | Permalink |  | Top
 
ozone_man Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 02:12 PM
Response to Reply #1
10. The big one that is.
The last one was just a warm up for the one that's coming. We never really left the last one, just an illusion supported by massive deficit spending and housing refinancing. Reminds me of the Wily Coyote running off a cliff. It's finally time to take that look down.
Printer Friendly | Permalink |  | Top
 
bushisanidiot Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 08:31 AM
Response to Original message
2. High gas prices are to blame for many things.. I can't afford to take
my kids to the movies once a week anymore because I'm paying an extra $80 a month in gas which sucks up my entertainment budget. I imagine there are families all over the country not going out and spending like they used to because of the crazy gas prices..

we're sinking.. and the only ones who think the economy is doing "great" are the oil, power and insurance companies. they get richer and we get poorer.

THANKS, AWOL BUSH!! THANKS A LOT!
Printer Friendly | Permalink |  | Top
 
natrat Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 08:56 AM
Response to Original message
3. heating bills this winter will break lots of budgets
lets see -heat, food or creditcard payment-no longer the land of plenty
Printer Friendly | Permalink |  | Top
 
Mountainman Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 10:35 AM
Response to Original message
4. a record low of negative 0.6 percent in July.?
If I remember my econ classes correctly, negative 0.6 percent is called dis savings. Or people are spending more than they take in. On the savings,spending and income graph that means the line is below the zero mark where incomes equal spending. It's been a long time since I had econ though.
Printer Friendly | Permalink |  | Top
 
Nay Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 04:24 PM
Response to Reply #4
19. You're exactly right, mountainman. It does mean that people, on
the whole, are spending more than they are taking in. They have been doing this for a couple/three years. Less than 10 years ago, economists used to grouse about Americans only saving 1 or 2 percent -- now, we're in the negative range. Any economist will suggest to you that this can't go on for very long.
Printer Friendly | Permalink |  | Top
 
katusha Donating Member (592 posts) Send PM | Profile | Ignore Wed Sep-28-05 01:58 PM
Response to Original message
5. Credit Card Payments Hindered by Gas Prices
http://news.yahoo.com/s/ap/20050928/ap_on_bi_ge/late_lo...

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.

(snip)

"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."

(snip)

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.

(snip)

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.
------------------------

Printer Friendly | Permalink |  | Top
 
Lochloosa Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 01:58 PM
Response to Reply #5
6. Wait till people see their minimum payments double.....
then the shit will hit the fan. I am so glad to be out of debt! :woohoo:
Printer Friendly | Permalink |  | Top
 
tanyev Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 01:58 PM
Response to Reply #6
7. No kidding.
If just the rise in gas prices was enough to cause a lot of past due payments, then doubling the minimum payment is going to bring the house of cards tumbling down.
Printer Friendly | Permalink |  | Top
 
Tight_rope Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 07:21 PM
Response to Reply #6
35. Learned in 1999 the Clinton moto...."PAY AS YOU GO"!
I love not being part of the true American dream "To be in debt", is the true American dream...."CHARGE IT"! :think:
Printer Friendly | Permalink |  | Top
 
orwell Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 01:58 PM
Response to Reply #5
8. The Talking Heads
on CNBC and Bloomberg this morning were all "glass is half full" about gas prices. Oh Boy...more profits. They mentioned...briefly...that "some" in the middle or lower classes might have a tough time of it - what with having to drive to work and all - but who cares. They were all making money. Wheeeeeee!

A seat on the Merc went for a record today as all those glittering profits waited for the next perspective oil trader. Meanwhile, Pug/Dem bankruptcy collusion will eventually be recognized by the great unwashed as a direct sellout to the big credit card companies who are chomping at the bit to increase payments and profits.

It's nice to be a capitalist when the workers don't realize how badly they are getting screwed. Same as it ever was...
Printer Friendly | Permalink |  | Top
 
intheflow Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 01:58 PM
Response to Reply #5
9. Thank God the bankruptcy bill went through!
Can you imagine the suffering those poor credit card vampires would have to endure without the bill's protection?

:sarcasm:
Printer Friendly | Permalink |  | Top
 
AZBlue Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 04:02 PM
Response to Reply #9
18. Are we sure the Credit Card Cos don't have a weather machine?
Yeah, really nice timing for them, huh? Between Katrina & Rita destroying thousands of lives and subsequent high gas prices (which not only hits us at the pump but in the cost of just about ALL goods purchased) I'd almost believe that credit card companies created the hurricanes.
Printer Friendly | Permalink |  | Top
 
sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 02:41 PM
Response to Original message
11. Here comes the Debtors Prison.
Printer Friendly | Permalink |  | Top
 
kostya Donating Member (769 posts) Send PM | Profile | Ignore Wed Sep-28-05 02:44 PM
Response to Original message
12. Credit Card Payments Hindered by Gas Prices
Edited on Wed Sep-28-05 02:29 PM by kostya
http://news.yahoo.com/s/ap/20050928/ap_on_bi_ge/late_lo... ;_ylt=AovnEI.TwRpJHu15NCzsnwWs0NUE;_ylu=X3oDMTA3b2NibDltBHNlYwM3MTY-

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 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.

Tip of the iceberg finally popping up?

(on edit: sorry, dup'd the second paragraph)
Printer Friendly | Permalink |  | Top
 
NVMojo Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 02:44 PM
Response to Reply #12
13. And the Reid supported bankruptcy bill starts soon! Humpty Dumpty!
Printer Friendly | Permalink |  | Top
 
enigma000 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 02:44 PM
Response to Reply #12
14. Trouble ahead
Me thinks that if 5% of the adult US population cant make their minimum payment and that with monthly minimum payments set to double (due to changes in the credit laws) the US and A LOT of individuals are going to be feel like too little butter spread over too much bread

Printer Friendly | Permalink |  | Top
 
NYC Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 03:48 PM
Response to Reply #14
16. Doubling the minimum payment is not mandatory.
Maybe the credit card companies will rethink this.

On the other hand, what have they got to lose?
Printer Friendly | Permalink |  | Top
 
sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 02:44 PM
Response to Reply #12
15. Many articles like this to come in the future. Debtors Prison.
Printer Friendly | Permalink |  | Top
 
tanyev Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 03:51 PM
Response to Reply #15
17. And they can use the people in the debtors' prisons
to work at newly created American sweatshops which are exempt from labor laws because they are criminals and it will be even cheaper than foreign sweatshops. Brilliant.
Printer Friendly | Permalink |  | Top
 
Moderator DU Moderator Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:48 PM
Response to Original message
20. Kick
Printer Friendly | Permalink |  | Top
 
CornField Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:48 PM
Response to Original message
21. Overdue Credit Card Bills Hit Record High
http://news.yahoo.com/s/ap/20050928/ap_on_bi_ge/late_lo...

WASHINGTON - Charge it! That familiar refrain is producing an unwanted response for more Americans: Your bill is overdue! Surging energy prices, low personal savings and the higher cost of borrowing have combined to produce a record level of overdue credit card bills.

The American Bankers Association reported Wednesday that the percentage of credit card accounts 30 or more days past due climbed to an all-time high of 4.81 percent in the April-to-June period. It could grow in the months ahead, experts said.

The previous high of 4.76 percent came during the first three months of the year, in keeping with a generally steady rise over the past several years.

"The last two quarters have not been pretty," said Jim Chessen, the association's chief economist.

(much more at link)

Printer Friendly | Permalink |  | Top
 
VegasWolf Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #21
22. Just give them to Tom DeLay's accountant. nt
Printer Friendly | Permalink |  | Top
 
rzemanfl Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #21
23. Wait until next year. This will seem like the glory days...n/t
Printer Friendly | Permalink |  | Top
 
gizmo1979 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #23
33. No crap.can you pay your
heat bill with credit card?
Printer Friendly | Permalink |  | Top
 
CornField Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #21
24. I especially thought this was telling
Late payments may be bad news for consumers, but credit card companies do not necessarily mind them because late fees are a source of revenue.

"Credit card companies are increasingly addicted to their fees," said Daniel Ray, editor-in-chief at Bankrate.com, an online financial service. "Six years ago, all fees including late fees contributed only a minor portion to overall revenue. Today it accounts for more than 30 percent."

Printer Friendly | Permalink |  | Top
 
TallahasseeGrannie Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #24
26. Yeah and at 29 a pop for a late payment, they love them! n/t
Printer Friendly | Permalink |  | Top
 
DemInDistress Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #21
25. What will people do when
credit card companies demand that a creditor pay double the minimum
monthly balance? Banks will implement this new rule before the end of
05'.So those who can scrape up enough for the minimum now have to dig deeper.Shame on this Bush Crime Family............
Printer Friendly | Permalink |  | Top
 
HockeyMom Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #25
29. Just in time for the Holiday Shopping Season too
AND the higher home heating costs. If retailers thought they were hurTing last year, wait until this year. Do you charge Holiday Presents for your family, or do you keep them WARM?

Ah, but the Bush supporters with their Hummers and their tax cuts, don't give a DAMN.
Printer Friendly | Permalink |  | Top
 
ClintonTyree Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #25
30. End of economy........
no GI Joe with the Kung-Foo Grip for little Johnny this year. Combined with gas and fuel oil prices rocketing this winter the economy will plunge along with the Stock Market. Of course we're due for a Stock Market "correction" (read; another transfer of wealth from the middle class to the rich) so the rich will have another banner year. All is good in republikanland, the poor are poorer, the middle class are now poor and the rich....well, they own it all now! Now THAT'S what capitalism is all about. ;)
Printer Friendly | Permalink |  | Top
 
ThumperDumper Donating Member (368 posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #21
27. Oh, crap! That reminds me... n/t
Printer Friendly | Permalink |  | Top
 
jkappy Donating Member (214 posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #21
28. how many pay max?
I wonder what the percentage is for persons who do not pay the actual bill, or the max. Is that figure also rising?
Printer Friendly | Permalink |  | Top
 
brentspeak Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #21
31. Good thing the credit card companies got the bankruptcy bill passed
:mad: :mad: :mad: :mad: :mad:
Printer Friendly | Permalink |  | Top
 
2Design Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #21
32. probably new bankruptcy law - be a lot of filings between now
and oct 17th - so their lawyers probably told them not to pay anymore
Printer Friendly | Permalink |  | Top
 
ClintonTyree Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-05 06:49 PM
Response to Reply #21
34. The same shit happened under Reagan.........
Americans followed the government's lead and ran up unbelievable credit card bills. Ahhhh.... the times were GOOD! Of course all the bills came due sometime (except for the government's) and people were filing for bankruptcy left and right. Trickle down economics strikes again! bush SOOOOO wanted to be remembered as another St.Ronnie and it looks like he might exceed his wishes. He'll not only be remembered as the worst president ever, he'll be the president that single handedly plunged the nation into a second great depression. Way to go, georgie!
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Thu Jul 24th 2014, 01:51 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC