Late Credit Card Payments Edge Higher

[NVMojo]

(but all is well in Bushworld, land of the rich!)

WASHINGTON (AP) - Late payments on credit card bills edged up this past spring, when high energy prices were squeezing the finances of some people and making it hard to pay bills on time.

The American Bankers Association, in its quarterly survey of consumer loans, reported Wednesday that the percentage of credit card payments 30 or more days past due increased to 4.41 percent in the April-to-June quarter, up slightly from 4.40 percent during the January-March period.

"High gas prices and Federal Reserve interest-rate hikes have left consumers with less money in their pockets. As a consequence, consumers have less money leftover to meet all their expenses, including paying back their loans," said James Chessen, the association's chief economist, in explaining the increase in late payments in the second quarter.

more...

http://www.lasvegassun.com/sunbin/stories/invest-corp/2006/sep/27/092703393.html

[Warpy]

1. Late payments on anything = credit card sticker shock

Some companies are jacking their rates all the way up to 39.9% if clients in poor neighborhoods are late on the LIGHT BILL.

I keep telling all of you, those things are a scam. Everybody who is in trouble started out paying the balance every month. The cards are just waiting to lock you in high interest debt, and that 18.9% they started at isn't enough for the greedy bastards.

If you do nothing else, pay those suckers down and get out from under. That's what may save you when the crunch comes.

[NVMojo]

2. You are 100% correct! We line Bush-huggers' pockets when we pay

those ridiculous interest rates. Remember, Citicorp and pals are connected to most of Congress. See who signed the Bankruptcy bill last year ...

[physioex]

3. Right....

That's exactly why I think that everyone here who is financially disciplined should have their cards and use them to get reward dollars back from the company.......

[RawMaterials]

4. yep

I get a free cd or dvd about ever month, and since i pay my balance off every month their is no interest. Plus i get to keep my cash in a savings account at 4.5% so i make money buy using a CC.

[NVMojo]

5. revenge can be sweet then!

[Tracer]

6. I don't charge much, and pay my CC off every month .... BUT ...

... a month ago, I incorrectly wrote out my check to Capital One.

Instead of $73.99, I wrote $73.95. Yes, I was .04 cents off.

They charged me a .50 finance fee and raised my APR.

I called them up and said (paraphrasing) "Are you f***ing kidding me!!!!???"

It didn't take them long to remove the finance charge and fix the APR (not that I care, since I pay in full all the time)

[NVMojo]

8. damn, that was insane!

[onehandle]

9. FYI: They hit your credit score.

I guarantee your score took a hit with this event, and they will Not lift a finger to fix it.

It works that way with every credit card.

Still, Capital One is one of the Worst credit card companies out there. I get ten offers a month from them and file them all straight into my recycling basket (after shredding).

[snooper2]

10. I got a free flower (annual in a small plastic pot) from Capitol One

They left it on the front porch with a card offer and note...

But they will never get my business...I've heard horror stories...

[AnneD]

7. No matter what your intentions are...

life happens. Everyone starts out with the intention of paying the balance off but I feel safe in saying that most folks do not. It is best for most consumers to avoid credit cards all togather. I have been credit card free for the lase 3 years and am paying down my balance that I owe. I will never ever use credit cards again. I'd just as soon handle a snake. I am so glad I started this journey three years ago and I'll be even happier when I am debt free. I am a big proponent of Dave Ramsey's Total Money Makeover. I hope that one day these CC Companies go under because folks are to wise to fall in their trap.

[Viva_La_Revolution]

14. 37 years old, and I've never had one

If I don't have the money for something, I don't get it.

I love livin' simple. :)

[AnneD]

15. That...

is the way to go. Think of how much money you save not havng to pay 1)interest on a CC 2)interest on a car loan 3)interest on furniture. It all ads up. I learned thid late in life...but I did learn. The interest you avoid paying is money in your pocket. And when you have cash...you can wheel and deal and get an even BETTER bargain and save more money. Keep it up kid.:thumbsup:

[OhioChick]

11. Hmmmm.........

Wonder how the economy would do should everyone in the US cut up their credit cards?

[SoCalDem]

12. Since they all changed the rules a while back, it's easier and easier to

have a "late payment"..

There was a time when there was a true "30-day" payment time.. That's long gone..

The date of your statement could be a week BEFORE you even recieve the bill, and the payment DUE date could be a weekend date, when no one is even there to open the mail, so by Monday, when someone shows up, your check could have been in the possession of the company for a few days, and still be counted as late...

Late payment charges are enormous these days, and can make the interest rate charged, ZOOM.. This is why they are so sneaky in the date assignments..

My husband and I cut all but one credit card over a year ago, and have not missed them one bit..

I now pay my bills online, and if we have used that card, I go online immediately and create a payment so it gets sent right out...(sometimes my payment is registered as a credit, before the charge is listed)..

[cosmicdot]

13. be careful in regards to Check 21

Check Clearing for the 21st Century Act (went into effect October 28, 2004)

people juggling to stay afloat - living paycheck to paycheck, and trying to make bill payments and making them on time, may not be aware of Check 21

checks are clearing upon receipt ... those 3 days to clear (floating checks) days are over
(of course, 'depositing' checks often find holds for a number of days -- it seems to always work against the working, struggling folks)

http://urbanlegends.about.com/library/bl_check_21.htm

Melissa Hart (PA) sponsored the House bill.
Richard Shelby (AL) sponsored the Senate bill.
Senate passed measure H.R. 1474 by Unanimous Consent.


Check 21 is a federal law that is designed to enable banks to handle more checks electronically, which should make check processing faster and more efficient. Today, banks often must physically move original paper checks from the bank where the checks are deposited to the bank that pays them. This transportation can be inefficient and costly. Check 21 became effective on October 28, 2004.

2. How will Check 21 make check processing more efficient?

Instead of physically moving paper checks from one bank to another, Check 21 will allow banks to process more checks electronically. Banks can capture a picture of the front and back of the check along with the associated payment information and transmit this information electronically. If a receiving bank or its customer requires a paper check, the bank can use the electronic picture and payment information to create a paper “substitute check.” This process enables banks to reduce the cost of physically handling and transporting original paper checks, which can be very expensive.

~snip~

http://www.federalreserve.gov/paymentsystems/truncation/faqs2.htm#ques1

[BeHereNow]

16. See that abyss up yonder the road a piece?

Yep, that's where this train is rolling!
Hang on, we heading for the cliff.

BHN

[SenorSanchez]

17. Being responsible with money

Yes gas prices are putting a pinch on the working poor and credit card rates are outrageous, but consumers need to become more responsible with there money. Gas prices are causing people to spend less and less. At the bike shop I work at our sales numbers have been dropping all summer and that is definitely the cause of gas prices If the Feds didn't raise interest rates we would might see the return of extremely high inflation rates and interest rates we saw in the 70s and that would destroy our economy.