Consumers Improving on Credit Card Payments - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Consumers Improving on Credit Card Payments

Consumers Improving on Credit Card Payments

Consumers Improving on Credit Card Payments
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

Numbers always tell a story and lately that tale is about how consumers are prioritizing their credit card payments, giving them importance even over their mortgage payments, according to a survey done by the credit information group Experian.

The top three cities showing progress in increased bankcard payments, in descending order since 2007, are Cleveland, San Antonio and Cincinnati. To make an even five are Dallas and Houston.

“In looking at the numbers, we’re seeing that even in the cities at the bottom of the list, consumers are meeting their bankcard payment obligations better than before the recession,” said Experian’s president of analytics, Michele Raneri, as reported by a Collections & Credit Risk article. “While the Experian data shows an overall improvement to these 60 day delinquencies, as much as a 30 percent improvement is seen in the key Texas cities, which is a positive sign in what has been a slow economic recovery.”

Credit Bureau TransUnion recently conducted a similar study that yielded similar results. Their credit card deleveraging analysis indicated that, between the first quarters of 2009 and 2010, consumers paid approximately $72 billion more for credit card payments, than for new purchases.

Borrowers are so determined to pay down their credit card debt, in fact, that they are doing so even before paying their mortgages. TransUnion discovered that during the recession, mortgage delinquencies climbed much more rapidly than credit card delinquency rates.

Ezra Becker, vice president of research for TransUnion, told USA Today that, in the past, consumers were more likely to pay their mortgages before their credit card bills, but the sharp decline in home values has caused some to rethink their priorities.

“If you bought your home for $300,000 and the house across the street is selling for $130,000, you have less motivation to pay your mortgage. You feel like you’re never going to get even,” Becker said.

In addition to borrowers reprioritizing their bill payments, some other contributing factors to the declining credit card delinquency rate is the fact that total consumer debt is less overall, credit is more difficult to obtain and card -issuing companies have been writing off balances that are six months past due as uncollectable, known as “charge-offs.”

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Identity Fraud is Up

Posted: February 22, 2018

Last year identity fraud hit a record high, according to the 2018 Identity Fraud Study released by Javelin Strategy & Research. This brings the total number of identity fraud victims in the U.S. to 16.7 million, representing an 8% upswing. ... Continue reading
Traveling More and Taking Shorter Trips in 2018

Posted: February 21, 2018

Heading out for a quick getaway or extended trip to de-stress is trending with travelers, according to Visa's Global Travel Intentions (GTI) Study. They also discovered that taking shorter trips and traveling more often is in the cards for ... Continue reading
Travel and Dinning Out is Trending on Valentine’s Day

Posted: February 15, 2018

If you are planning to take your lover out for a night on the town or on a whirlwind trip for Valentine's Day, you are not alone. According to the new MasterCard Love Index findings, this type of emotion fueled spending is outpacing other ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit