Credit Card News

Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many 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

By
Add to Favorites:
Consumers Improving on Credit Card Payments

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.”

Add to Favorites:

Related News:

IBM & Visa Partnering Up to Connect up to 20 Billion Devices to Payments

By Dar Dowling, Posted: February 23, 2017

Have you ever wished you could make a payment from your ring, an appliance or maybe even your car? Well your wish may well come true due to a collaboration between IBM and Visa, designed to enable payments from all kinds of devices and ... Continue reading
Finances and Marriage – Its an Issue

By Dar Dowling, Posted: February 22, 2017

Finances can play a very real role in divorce, but it can also have a profound effect on a couple’s financial health after divorce papers have been signed and put away, according to a new national study by Experian. Continue reading
Small and Medium Businesses Are Feeling Hopeful and Confident

By Dar Dowling, Posted: February 21, 2017

If you have felt a sense of hopefulness when visiting small and medium-sized businesses, you’re in sync with the trending vibe, according to the inaugural American Express Global SME Pulse. The study found that these businesses are feeling ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit