Brother continues to tell me about problems with credit cards. If the fuel costs don't decline we will see significant issues with credit cards that have a larger percentage of holders being maxed out. (within 10% of credit limit)
Rising fuel prices and food costs are causing more and more people to increase the balances on credit cards. He said they have seen a 500% increase in customers reaching the 90% of credit limit in the last month. They have seen a 1,500% increase in customers in the 50% to 75% of credit limit since the first of the year. He also said almost 30% of all card holders are paying within 10% of the minimum monthly payment for the bill. That is up 750% from just last year.
They had to add additional printers/and stuffers to send out mailings for reduction in credit limits for huge numbers of customers. These printers are running three shifts per day saying credit limts have been reduced or frozen.
The are also reducing customers credit limits on customer who have spare accounts with no balance. Most of these card holders are having letters sent to them stating the zero balance credit card is having the balance lowered to $500. Credit card companies are doing this to reduce future debt load of persons that will load it up when the others get almost full.
He is predicting the serious problems by the end of the third quarter with the major credit card companies if they don't slow down the customers racking up almost unpayable debt.
Has anyone else seen anything in the news about these trends or is it just the company he works at.
Rising fuel prices and food costs are causing more and more people to increase the balances on credit cards. He said they have seen a 500% increase in customers reaching the 90% of credit limit in the last month. They have seen a 1,500% increase in customers in the 50% to 75% of credit limit since the first of the year. He also said almost 30% of all card holders are paying within 10% of the minimum monthly payment for the bill. That is up 750% from just last year.
They had to add additional printers/and stuffers to send out mailings for reduction in credit limits for huge numbers of customers. These printers are running three shifts per day saying credit limts have been reduced or frozen.
The are also reducing customers credit limits on customer who have spare accounts with no balance. Most of these card holders are having letters sent to them stating the zero balance credit card is having the balance lowered to $500. Credit card companies are doing this to reduce future debt load of persons that will load it up when the others get almost full.
He is predicting the serious problems by the end of the third quarter with the major credit card companies if they don't slow down the customers racking up almost unpayable debt.
Has anyone else seen anything in the news about these trends or is it just the company he works at.
), but definitly things that they dont really need. No disposable income=increased credit card usage to replace said disposable income.
