As Debit Cards Catch Credit, Banks Cash In

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%.

Cash-strapped consumers claim companies charge fees without reducing debt

(NEWSER) - State attorneys general are being overwhelmed with complaints about “debt settlement” companies that promise consumers relief from mounting bills but rarely deliver, the New York Times reports. The number of such companies, which often collect fees of 15% of the total debt to negotiate with creditors, has tripled in recent years as consumers who binged on credit now face a reduced capacity to pay. More»

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»

Falls to an average of $4,951

(NEWSER) - The average American’s credit card debt hit an 8-year low in the second quarter of the year—even as rates hit a 9-year high . The average combined credit card debt fell to $4,951, down 13% from $5,719 over the same stretch last year, according to figures from the TransUnion credit reporting agency. The average hasn’t been below $5,000 since the first quarter of 2002, the AP reports. 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»