Debt Settlers Promise Relief, Provide Little

Debit, layaways tempt as consumers watch wallets

(NEWSER) - Will today’s wallet-watching leave a permanent dent in America’s beloved plastic? Likely to write off $45 billion this year, with billions more at stake, credit-card lenders are tightening rules and raising fees, the New York Times reports. “People are going to have to live within their means,” says a former Visa CEO. But that may be short-lived, notes an analyst: America’s addicted. More»

Consumers see way to limit spending; banks adjust fee tactics

(NEWSER) - Credit is no longer the king of cards, Business Week reports. As banks get stingy with credit and consumers look for ways to reel in their "charge it" ways, more and more are turning to debit cards—so many, in fact, that Visa projects debit spending could exceed credit this year. This year's 13% climb in debit purchases may seem like good news for banks, as debit cards users have no payments to default on, but they don't rack up interest, either. More»

With unemployment rising, companies modify, reduce debt

(NEWSER) - With unemployment nearing 10%, credit card companies are doing something once unheard of: forgiving debt, or modifying it in the customer’s favor, the Washington Post reports. Companies are loathe to discuss the practice, lest it inspire more delinquencies, but according to one industry report, roughly 3 million people got some kind of modification last year. “Issuers are looking to get something rather than nothing,” explains one analyst. More»

Credit card, cell phone companies scramble to collect by themselves

(NEWSER) - Credit card and cell phone companies are scrambling as two major arbitration firms back out of the business of settling consumer disputes, the Wall Street Journal reports. The National Arbitration Forum—accused in a Minnesota lawsuit of misleading consumers into thinking it was impartial—will stop taking cases this week, and the American Arbitration Association says it will follow suit until new guidelines are established. More»

Florida, California have credit problem, Forbes shows

(NEWSER) - The recession has many Americans tightening their belts, but some just can’t seem to put away the plastic. Forbes checked in with Equifax and compiled a list of the country's most credit card-happy cities. Conclusion? Florida might have a problem.

1. Miami: Average household credit card debt: $9,797, or 22.6% of income.
2. Tampa: $7,685, or 17.1%.