Good grief . . .

[Just_A_Guy]

One of the bright spots in this recession--or so we've thought--is that overall credit card debt is down. People are apparently learning to rein in their spending and are handling their credit cards more responsibly.

A new study (Volokh coverage here) contradicts this and suggests that the reduction in credit card debt is due to charge-offs of noncollectable debt; actual credit card spending is apparently as high as ever it was.

[Roseslipper]

i work in the world of credit and alot of people today are hurting i hear sad storys every day that make me want to cry. alot of people are not working, alot of couples have lost there jobs...and then their sickness. no one knows what will happen tomorrow. people need to learn not to use their credit cards. people are paying their bills with them, taking out cash, buying their meds with them....oh boy

[Tarnished]

And this is why I do not own credit cards and probably never will. I have seen too many problems come from credit cards in both my family and my friends for me to ever really want one. Thankfully my husband agrees. It has led to a marriage of 10 years with no credit cards, and we currently only have the debt of our house and our car on our hands.

[Roseslipper]

we been told to not go into debt for anything other then a modest home, car, and education. Thou I do think its important to have a credit card, but to use it wisely.

[PrinceofLight2000]

And this is why I do not own credit cards and probably never will. I have seen too many problems come from credit cards in both my family and my friends for me to ever really want one. Thankfully my husband agrees. It has led to a marriage of 10 years with no credit cards, and we currently only have the debt of our house and our car on our hands.

I plan to get one or two, but I'm always going to make sure I'm able to pay everything off every month so that the credit card company can't make a cent off me and I still have a really good credit score.

[jay8]

I got a credit card for emergencies. I've had a lot of emergencies.

Edited September 15, 2010 by jay8
Deleting

[PrinceofLight2000]

What's so funny, Soulsearcher?

I don't think it's actually debt when you have enough money to pay it off without owing a cent of interest when you do pay.

[Wingnut]

I plan to get one or two, but I'm always going to make sure I'm able to pay everything off every month so that the credit card company can't make a cent off me and I still have a really good credit score.

Fun fact: your credit score improves if you carry a balance. Keep it low -- pay off all but $20 each month.

[rubondfan2]

One of the bright spots in this recession--or so we've thought--is that overall credit card debt is down. People are apparently learning to rein in their spending and are handling their credit cards more responsibly.

A new study (Volokh coverage here) contradicts this and suggests that the reduction in credit card debt is due to charge-offs of noncollectable debt; actual credit card spending is apparently as high as ever it was.

Sadly, I wouldn't have even needed to see a "study" to tell me what is already quite obvious and pervasive throughout our 1st and 2nd world societies. The use, misuse and abuse of easy credit is destroying our economy and our families. The prophets counsel over many years not only rings but now screams within our ears about the dangers of carrying debt.

However, we should not be surprised. The central bankers formulated this strategy many years ago and they are seeing the fruits of their labors... a collapsing, emploding economy which will need "rescuing".

Thanks, J_A_G for keeping your finger on the pulse of these economic stories. We're going to see many more of them and the astute and "in tune" will be able to see the writing on the wall more clearly as the end times draw nearer.

[PrinceofLight2000]

Fun fact: your credit score improves if you carry a balance. Keep it low -- pay off all but $20 each month.

How does that work? I was always told your score improves even if you get rid of the balance every month.

[jay8]

Wingnut is right. Don't close the account and keep a small balance and it will give you a good credit score. Then with good credit score you can get in debt.

[PrinceofLight2000]

Wingnut is right. Don't close the account and keep a small balance and it will give you a good credit score. Then with good credit score you can get in debt.

Not much of an explanation here, but I'll take both your words for it. lol.

[jay8]

Not much of an explanation here, but I'll take both your words for it. lol.

This is the way they make your credit score. The more credits accounts you have with very little owing on them the better the score. Having said that you wouldn't want to show say 30 accounts with $10 balance on them. Ideally it would be about 7-12 accounts with very little balance would be the ideal.

When you have a good score avoid taking on debt because it is a trap.

[PrinceofLight2000]

This is the way they make your credit score. The more credits accounts you have with very little owing on them the better the score. Having said that you wouldn't want to show say 30 accounts with $10 balance on them. Ideally it would be about 7-12 accounts with very little balance would be the ideal.

When you have a good score avoid taking on debt because it is a trap.

So 7-12 different cards? haha.

[talisyn]

yeah....that's a whole lot of credit cards O.o

[Roseslipper]

you need to carry a balance to build ctredit. so the best thing is to use ur credit card buy a few things that uknow u can pay off in 3 months. is the best to build credit. it is important to have a good credit score. dont fall into traps like 0% interst rates, or lower interst rates for 6 months promotions. every one has its a sad thing to see what they have done to the economy, and what we have let them do, and others too. gaddyentin robbers all over....sorry i cant spell, but I think u know what I mean.

[Guest]

The only reason you need your credit score is if you want to take out a loan. If you already have a house, you don't need to pay interest just to keep a good credit score. It's idiotic.

Save money in money market accounts, conservative investments, etc., so that if you ever get in a bind, you won't have to take out a loan.

[Dravin]

The only reason you need your credit score is if you want to take out a loan. If you already have a house, you don't need to pay interest just to keep a good credit score. It's idiotic.

Save money in money market accounts, conservative investments, etc., so that if you ever get in a bind, you won't have to take out a loan.

Prince is 19 and IIRC preparing to go on a mission. Just FYI. Still valid advice (as far as my understanding goes) though.

[beefche]

You don't need to keep a balance to improve your credit score. You need to have used the card. The #1 thing that they look at to score your credit is (ready for this?) history of payments. Late payments can kill your credit score.

So, you don't need to keep a low balance. You can pay off credit cards, but make sure you are never, ever late. And it doesn't help to have credit cards and never use them. You need to use credit to show you can handle the credit.

I really like the advice of Suze Orman. Here's a link to what she says about your FICO score. There are many advisors, so if you really want to improve your credit, I suggest going to the library and/or looking online and finding out what works best for YOU. I tend to use a combination of advice from LDS church, Suze, Dave Ramsey, and someone else whose name I can't remember.

[Moksha]

i imagine the new credit card regulations will help a great deal in years to come.

[jay8]

Not so far. The only good thing that may come out of it is people will pay them off if they have a job.

I'm paying 21.89% interest under the new rules which I'm sure were written up by the banking industry and pasted by Congress.

Congressmen will be joining the unemployment line in November.

[Saldrin]

I have a dream of getting to a point where I have no credit score because I use no credit or loans ect ect. I heard Dave Ramsey call a credit score an I love debt score.

"The rich ruleth over the poor, and the borrower is servant to the lender." Proverbs 22 7

[jay8]

I have a dream of getting to a point where I have no credit score because I use no credit or loans ect ect. I heard Dave Ramsey call a credit score an I love debt score.

"The rich ruleth over the poor, and the borrower is servant to the lender." Proverbs 22 7

I would change that to 'slave' of the bankers!

21% interest loan to my credit union!

[Saldrin]

I would change that to 'slave' of the bankers!

21% interest loan to my credit union!

YEEOUCH!:eek:

[HiJolly]

I have a dream of getting to a point where I have no credit score because I use no credit or loans ect ect. I heard Dave Ramsey call a credit score an I love debt score.

"The rich ruleth over the poor, and the borrower is servant to the lender." Proverbs 22 7

My wife & I have been out of debt (thanks be to Heavenly Father!) for the last year & a half. Last December we got a loan for a new used car, and the credit rating came in at over 800. wow. That was cool.

HiJolly

ps. We paid off the car loan two months later.

Edited September 22, 2010 by HiJolly
add ps.