The credit card problem has reached an all time high and many cardholders are currently delinquent in their bill payments.
The figures get much worse when considering the current unemployment rate in the U.S, which is, according to Fitch Ratings, at 8.9%. It is the highest unemployment rate of the country since 1983. With little in the way of available cash, consumers are turning to credit cards. Unfortunately, many are not keeping up with their bills and the credit card crisis just gets...
The credit industry has drastically changed over the years. Many would argue that the “good old days” were much simpler than today. Back then, a borrower's chances of getting a loan depended basically on whether he had any debts and whether he could pay cash for them. Unfortunately, the simple system had a lot of loopholes and, as the credit industry evolved, it adapted several models to deal make itself much more resistant and reliable.
Nowadays, measuring scale that determines whether...
The passage of the credit card bill last Friday has the credit card industry all shook up. The legislation contained in the bill will change many of the fundamental practices of the credit industry, some of which were downright abusive. The bill will be implemented after nine months, giving credit card companies some time to adjust to the new legislation.
Credit card industry practitioners have constantly been issuing warnings that the passage of the credit card bill would mean making less...
A last minute provision inserted into the credit card bill release by the Senate last Tuesday has major retailers in the country a bit worried.
The last minute provision of Sen. Robert Menendez prohibits companies that issue credit cards from opening credit card accounts without first thoroughly considering the ability of the bower to meet the required payments. The rules on just how companies can comply with the provision will be left to the Federal Reserve.
The provision could have a...
The economic downturn has gotten the entire country in an uproar. Prices of basic goods are soaring, employment is going down, and interest rates are jumping from as low as 1.7% to as high as 25%. One thing that the economic collapse has proven is how important good credit rating is.
Banks have upped their interest rates to astronomical heights since the economic crisis began. They have also drastically lowered the credit limits for most credit holders. In most cases, those who have bad...
Later this week or earlier the next, the United States Senate will begin discussion over the controversial credit card legislation House bill sponsored by Rep. Carolyn Maloney.
The bill aims to limit fees and rate hikes of credit cards in an effort to protect debt laden consumers. The bill was first pushed and approved in the House of Representatives at the end of last month. Support for the bill in the House of Representatives was impressive, passing with a vote of 357 to 70. Furthermore,...
Credit card consumers may be relieved to hear that President Obama and top economic officials will meet with the heads of 14 major banks to discuss unfair credit card practices. Since the beginning of the financial crisis credit card companies have implemented many practices to try to reduce their level of risk. Unfortunately most of these aggressive practices are putting Americans finances at higher risk as they continue to struggle with increased unemployment, loss of savings and other...
Continue readingWith so many consumers struggling with debt these days, there seems to be a major increase in the amount of organizations that are working to improve the financial literacy of the country at large. April is dedicated to be Financial Literacy month, with National Credit Education week being observed April 20-26 so there are many launches of new educational programs to help with debt.
Research shows that many Americans are not fully prepared to deal with their own financial issues. Many of the...