Dangerous trends with credit cards

longbow · 05-06-2008

Brother continues to tell me about problems with credit cards. If the fuel costs don't decline we will see significant issues with credit cards that have a larger percentage of holders being maxed out. (within 10% of credit limit)

Rising fuel prices and food costs are causing more and more people to increase the balances on credit cards. He said they have seen a 500% increase in customers reaching the 90% of credit limit in the last month. They have seen a 1,500% increase in customers in the 50% to 75% of credit limit since the first of the year. He also said almost 30% of all card holders are paying within 10% of the minimum monthly payment for the bill. That is up 750% from just last year.

They had to add additional printers/and stuffers to send out mailings for reduction in credit limits for huge numbers of customers. These printers are running three shifts per day saying credit limts have been reduced or frozen.

The are also reducing customers credit limits on customer who have spare accounts with no balance. Most of these card holders are having letters sent to them stating the zero balance credit card is having the balance lowered to $500. Credit card companies are doing this to reduce future debt load of persons that will load it up when the others get almost full.

He is predicting the serious problems by the end of the third quarter with the major credit card companies if they don't slow down the customers racking up almost unpayable debt.

Has anyone else seen anything in the news about these trends or is it just the company he works at.

Disposable Heart · 05-07-2008

I know alot of folks that tend to use their credit cards, now that their small amounts of disposable income must now be used for essentials. I dont think its necessarily fuel (though it may be that for the people with big SUVs

), but definitly things that they dont really need. No disposable income=increased credit card usage to replace said disposable income.

Bigum1969 · 05-07-2008

I think we're already at record levels of credit debt in this country right now. With the sagging economy and high gas/food prices, it's bound to get worse.

longbow · 05-13-2008

Talked with him again today. He said many credit card companies are crunching credit reports like never done before. If you have high balances and are making low payments - your credit card is toast. All you will have is just what your existing balance is. As you pay it down there is a good chance they will lower the credit limit as you pay it down.

Royal-1 · 05-18-2008

Just read this.

CDO DEBT COULD POSE RENEWED DANGER FOR BANKS

longbow · 05-21-2008

Still more bad news for his company

They have seen a hugh increase in can't pay customers in the last month. He's not sure if they can't pay or just won't pay. These people use to make the minimum pay, but now have stopped.

He said they are begging these customers to post date an over the phone check and get anything from these people. He is very nervous about the surge in these type of customers. Its something they are having meetings about everyday. He says its the crack in the dam and the finger is not stopping the flow........

The days of easy credit are going to be a memory in the near future.

He also said watch for revised credit agreements from your credit card companies in the mail. If you get one, read it front to back. If you don't like the changes to fees and rates for late payment, write them to say you don't accept the change ( if allowed) You might be able to keep from having those huge rates piled on you if times get bad.

Feign · 05-21-2008

Yeah I'm about to be one of those statistics. It sucks.

hunter480 · 05-22-2008

I believe we are in for some very tough times-not only in this Country, but globally.

It`s going to be a different version of TSHTF than most imagine or are prepared for. That`s always the way it is-never a beat you over the head kind of thing-always much more subtle than you think it will be.

Be prepared, it`s coming, and it can`t be turned back.

TomN · 05-22-2008

I have no credit cards, I do cash only. It sucks and is a pain in the ass but I have no credit card bills.

Pami · 05-23-2008

Quote:

Originally Posted by TomN

I have no credit cards, I do cash only. It sucks and is a pain in the ass but I have no credit card bills.

I think we only have one left to get paid off. Finally.
Now... on to those student loans... *$&%&@^

05-06-2008	#1 (permalink)
longbow Just squeaking along Join Date: Apr 2008 Posts: 45	Dangerous trends with credit cards Brother continues to tell me about problems with credit cards. If the fuel costs don't decline we will see significant issues with credit cards that have a larger percentage of holders being maxed out. (within 10% of credit limit) Rising fuel prices and food costs are causing more and more people to increase the balances on credit cards. He said they have seen a 500% increase in customers reaching the 90% of credit limit in the last month. They have seen a 1,500% increase in customers in the 50% to 75% of credit limit since the first of the year. He also said almost 30% of all card holders are paying within 10% of the minimum monthly payment for the bill. That is up 750% from just last year. They had to add additional printers/and stuffers to send out mailings for reduction in credit limits for huge numbers of customers. These printers are running three shifts per day saying credit limts have been reduced or frozen. The are also reducing customers credit limits on customer who have spare accounts with no balance. Most of these card holders are having letters sent to them stating the zero balance credit card is having the balance lowered to $500. Credit card companies are doing this to reduce future debt load of persons that will load it up when the others get almost full. He is predicting the serious problems by the end of the third quarter with the major credit card companies if they don't slow down the customers racking up almost unpayable debt. Has anyone else seen anything in the news about these trends or is it just the company he works at.

05-07-2008	#2 (permalink)
Disposable Heart Human Tacit Rainbow Join Date: Apr 2008 Posts: 721	I know alot of folks that tend to use their credit cards, now that their small amounts of disposable income must now be used for essentials. I dont think its necessarily fuel (though it may be that for the people with big SUVs ), but definitly things that they dont really need. No disposable income=increased credit card usage to replace said disposable income. __________________ GLOCK DISHWASHER SAFE IN ALL 50 STATES

05-07-2008	#3 (permalink)
Bigum1969 Paranoid and Currently Being Chased Join Date: Apr 2008 Location: SW Indiana Posts: 1,102	I think we're already at record levels of credit debt in this country right now. With the sagging economy and high gas/food prices, it's bound to get worse. __________________ Audentes fortuna juvet

05-18-2008	#5 (permalink)
Royal-1 Plinker Join Date: Apr 2008 Location: Noblesville Posts: 65	CDO DEBT COULD POSE RENEWED DANGER FOR BANKS Just read this. CDO DEBT COULD POSE RENEWED DANGER FOR BANKS

05-21-2008	#7 (permalink)
Feign Walther P99QA Green Join Date: Apr 2008 Location: Columbus-ish Posts: 246	Yeah I'm about to be one of those statistics. It sucks. __________________ Always looking forward...

05-13-2008	#4 (permalink)
longbow Just squeaking along Join Date: Apr 2008 Posts: 45	Talked with him again today. He said many credit card companies are crunching credit reports like never done before. If you have high balances and are making low payments - your credit card is toast. All you will have is just what your existing balance is. As you pay it down there is a good chance they will lower the credit limit as you pay it down.

05-21-2008	#6 (permalink)
longbow Just squeaking along Join Date: Apr 2008 Posts: 45	Still more bad news for his company They have seen a hugh increase in can't pay customers in the last month. He's not sure if they can't pay or just won't pay. These people use to make the minimum pay, but now have stopped. He said they are begging these customers to post date an over the phone check and get anything from these people. He is very nervous about the surge in these type of customers. Its something they are having meetings about everyday. He says its the crack in the dam and the finger is not stopping the flow........ The days of easy credit are going to be a memory in the near future. He also said watch for revised credit agreements from your credit card companies in the mail. If you get one, read it front to back. If you don't like the changes to fees and rates for late payment, write them to say you don't accept the change ( if allowed) You might be able to keep from having those huge rates piled on you if times get bad.

05-22-2008	#8 (permalink)
hunter480 Plinker Join Date: Apr 2008 Location: Coatesville, In. Posts: 108	I believe we are in for some very tough times-not only in this Country, but globally. It`s going to be a different version of TSHTF than most imagine or are prepared for. That`s always the way it is-never a beat you over the head kind of thing-always much more subtle than you think it will be. Be prepared, it`s coming, and it can`t be turned back.

05-22-2008	#9 (permalink)
TomN 'Tis but a flesh wound! Join Date: Mar 2008 Location: Mishawaka Posts: 1,611	I have no credit cards, I do cash only. It sucks and is a pain in the ass but I have no credit card bills. __________________ If you carry a gun, people call you paranoid. That's ridiculous. If I have a gun, what in the hell do I have to be paranoid about? - Clint Smith

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Credit card crash is next	longbow	Survival and Disaster Preparedness	23	05-01-2008 16:59