Credit Card level drops to lowest in 8 years

[NikoSan999]

Interesting article...worth the read

Credit card debt drops to lowest level in 8 years - DailyFinance

[Russ]

people are wising up...

or,

they have no job and know they can't pay the CC bill.

[mek42]

people are wising up...

or,

they have no job and know they can't pay the CC bill.

The second kind of implies the first.

Also, I don't know if it is good for our economy if people are letting their houses go to foreclosure while paying the CC.

[pollypurebred39]

Our news was reporting this also. They went on to say that since people were not buying on credit, paying down their debt and saving rather then spending, that they were the cause for us remaining in a recession. And...if we wanted to see it end we better start spending again!!!! What hogwash!

[Greebo]

Actually there is a valid point to that argument.

Fewer people using credit, more people doing without - does mean that overall sales are going to be down. That affects everything about our economy, in the end.

If *everyone* stopped using credit tomorrow, the effects would be catastrophic.

But I have serious doubts that ENOUGH people are doing without, credit wise, that it's the SOLE cause of the recession. I mean - there seems to be this bit of an issue with fundamentals, like, you know, cars, and housing...

[NikoSan999]

The second kind of implies the first.

Also, I don't know if it is good for our economy if people are letting their houses go to foreclosure while paying the CC.

I totally agree. But there's a but...About a year before we filed bankruptcy we got behind on the house for 3 months. AND the credit cards. When those two things weren't being paid, especially the house at $2100 a month, there was so called "extra money". I felt guilty for not paying some bill besides insurances, food and utilities. So I caught the credit cards up cause I felt like I should. I felt like I should be paying SOMETHING...you know.

We sold stuff and borrowed some to catch up house up after 3 months then couldn't do the credit cards again when started making payments. Vicious cycle. That was last year in June the house was caught back up.

Long story,,,you'd need to read my threads. But guilt plays a part in it for alot of people. You feel like you SHOULD repay some debt even if it CAN'T be the house.

I quit feeling guilty. Crap on them. They don't feel sorry for me

[khaski]

Grrr...no wonder my interest rate a little more than doubled, despite me being a customer for 7 years and NEVER having missed, or been even late, on a payment. That's OK, though...it made me angry enough to go flat-out snowballing it, they even get $8 payments at times all month long, if that's what I made off an ebay item I just sold. So angry about the rate, but gave me the motivation I needed to kick it into high gear! With less and less people using/paying their cc bills, the card companies are coming to the rest of us for it...lesson learned, don't carry a balance!

[happymomof4]

In 2001 my husband lost his job after 9/11. In a 2 yr period he didn't work for 18 months. He has a small contract in the middle. We paid off all our credit cards when he started working again. We haven't had one sense. If I need to make reservations I use my bank card.

Then with the economy the way it is my husband just went back to work this summer after 2 yrs of being layed off. It was great not having the bills that we had in 2001.

Living on cash isn't as hard as people think it is.

[Luckybustert]

Actually there is a valid point to that argument.

Fewer people using credit, more people doing without - does mean that overall sales are going to be down. That affects everything about our economy, in the end.

If *everyone* stopped using credit tomorrow, the effects would be catastrophic.

But I have serious doubts that ENOUGH people are doing without, credit wise, that it's the SOLE cause of the recession. I mean - there seems to be this bit of an issue with fundamentals, like, you know, cars, and housing...

I agree, but would it be fair to say that the economy is being rightsized as people learn to live within their means, to include more responsible use of credit?

I just took a loan from my retirement savings (TSP) at 2.5% interest to pay off all of my credit cards, which all had significantly higher interest rates. I figure I save on the interest and I'm paying myself back the principal. It was kind of funny because a few days after I paid them off I get a letter from Sears (Citibank, I believe) telling me how they've reviewed my credit report and based on that they're reducing my line of credit by about $500. I'd had the account for a long time and was late only one time and then only by a couple of days. My response: "I don't need or want your credit card; please close my account." (And don't be expecting me to shop at Sears anytime soon, with or without credit, thankyouverymuch.)

[sjohnson3278]

I can honestly say that I am ready to pay off and cut up my credit cards. We don"t have much CC debt but I don"t want that hanging over my head anymore. I agree that the economy suffers when we don't spend, spend, spend but that is why we are all in this situation to begin with, including our nation. We spend what we don"t have in order to have it now. I would rather save up and pay cash for what I want than hang my head walking to the mailbox because I know that bill is coming.

[Greebo]

I agree, but would it be fair to say that the economy is being rightsized as people learn to live within their means, to include more responsible use of credit?

That remains to be seen.

I just took a loan from my retirement savings (TSP) at 2.5% interest to pay off all of my credit cards, which all had significantly higher interest rates. I figure I save on the interest and I'm paying myself back the principal.

pleasepleaseplease do not delay in saving up the money needed to pay your TSP back in full.

If the TSP is ANYTHING like other retirement accounts, then if you and your job part ways, you will have 2 months to repay the TSP and then you'll be taxed and penalized on it - heavily.