Posted on 03/09/2010 11:16:15 PM PST by The Magical Mischief Tour
CHICAGO (MarketWatch) -- Credit-card debt has been falling for 16 straight months but consumers aren't paying off their financial obligations as much you might think. Instead, they're walking away from the debt, forcing credit-card issuers to write off as much as 90% of that reported drop, according to a new report by CardHub.com.
U.S. banks charged off a record $83.3 billion in credit-card losses last year. That makes up the bulk of the $93.2 billion drop in outstanding credit-card debt that was reported by the Federal Reserve for 2009.
(Excerpt) Read more at marketwatch.com ...
Looks like mortgages are no the only thing consumers are walking away from in this economy...
Isn’t that what they were told to do?
If only they didnt piss off their good customers who rarely had a late payment by increasing their rates 5 to 10 percent, they would of had less deadbeats. Its like the health insurance industry, increase your rates and have more problems.
I wish my conscience would let me.
I can’t honestly say anything bad about people who do this.
Look at corporate welfare, it’s disgusting
Look at where our gov’t spends our tax dollars as the people are fleeced and suffering.
They want to add on cap and tax, too...that’s by the rich for the rich.
They are invested heavily and ready to pluck us clean, they’re salivating it’s so close.
Legislate wealth, that’s the ticket.
Dirty cretinous deadbeats. These low lives should’ve done what decent corporations do and hire high powered lobbying firms that then get the government to bail them out.
Taxes on the middle and upper class are going to greatly increase in the next few years. The choices are:
1. Pay your taxes
2. Pay your mortgage
3. Pay your cards
If one can do all three, great! If not, I wonder which will be kicked to the curb?
So the truth comes out about credit cards and stylish spending.
” I wonder which will be kicked to the curb?”
Hopefully everyone that doesn’t honor their obligations in full!!!!
Oh please! If people have a choice between mortgages and food the choice is obvious. If you are so prescient that you foresaw the mortgage crash and the unemployment rates, then congrats. Most folks did not.
Even people that have always done their part are being hit. I am watching small business owners in the construction industry being forced to drastic measures and these are formerly millionaires.
With no end in sight, people don’t know how long to hang on. The Administration couldn’t give a damn about the reality and simply wants to raise taxes and costs. Decisions have to be made and statements like “honor your obligations” means nothing. Focus on your family is a much better phrase.
I am posting my own follow-up.
So, you have one of the most successful restaurants in my city. I spoke to the owner and they will be forced to close their doors if the health care bill passes. This means around 30 people out of work.
If that occurs, they will most likely have to default on small business credit lines which are credit card based. Business lines of credit are often issued as VISA cards with high limits. This enables small businesses to cover their cash flow issues (sometimes your A/R comes faster, sometimes it doesn’t. Sometimes your A/P has to happen before revenue is realized).
They will get wrapped up into this moniker of ‘deadbeat’ but, in fact, the government will have driven them out of business. If folks want to tar and feather the small business owners out there as ‘deadbeats’ go right ahead but keep in mind what we, small business owners, are facing. The climate is not of our doing and the rules are changing under our feet.
I know, one of my credit cards went to 36%, I told my husband to cut his up because I already had. I pay them off every month but what if something happened and I couldn’t? I only use them for convenience because I don’t buy things I can’t afford.
Anyont that doesn’t honor their debt should lose everything they have!!!
No, I don’t believe in charity!
Well, you made that nice and black and white.
I don’t know if you are aware of it, but there is this whole section of the law around contracts. Contract law dictates what you can and cannot do vis-a-vis debt and obligations.
Bring back debtor prisons!!!
Well, if we do it old style, we would need to rent the cuffs, cells, blankets, etc. to the prisoners and also make them buy their own food. That helps insure they are there forever.
Sounds good to me!!!
Ooohhhh wait! I have it!!! Why don’t we charge all of the current prison population for their shackles and make them buy their own food!!! Sell them marijuana at the pharmacy then charge $25 for a bag of Cheetos! We could make a killing and make the prisons self-sustaining.
Hell, we could lower the threshold on capital crimes and simply execute a lot more! That is old school as well since they used to execute people for pretty much anything. Make it a big old party and charge people for the show! make some dough on popcorn and beer sales!
Good, then all those law makers can sit for a GOOD long time!
Ca and many other states, this country... could be rid of vermin and start fresh.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.