Thursday, March 11, 2010 - 8:39 AM

What credit-card payoff? Consumers are dumping debt [MarketWatch]

Credit-card debt has been falling for 16 straight months but consumers aren't paying off their financial obligations as much you might think. Instead, they're walking away from the debt, forcing credit-card issuers to write off as much as 90% of that reported drop, according to a new report by CardHub.com.

This can't be good news for credit card reward programs. There's going to be less money to pay for those rewards.

KenBDG4,048 posts since
Nov 29, 2009
Rep Points: 106,905

1. Thursday, March 11, 2010 - 3:53 PM

Credit cards are a convenience tool for me, so if you reduce or eliminate the "perks", then that means less use of the card or cancelling of the account. I can go back to my pre-collegiate way of spending.

Anonymous963 posts since
May 9, 2010
Rep Points: 1,819

2. Friday, March 12, 2010 - 12:57 AM

To those people who are greatly concerned about losing 1 or 2% from their credit card "rewards" programs: Buy 1 or 2% less crap. You won't miss it. Really.

Anonymous963 posts since
May 9, 2010
Rep Points: 1,819

3. Friday, March 12, 2010 - 2:33 AM

The majority of my credit card "crap" purchases are for groceries, gasoline, insurance, subscription charges, and household supplies. I don't spend that much for "non-essentials" like electronics, clothing, tickets to events, vacations, travel, furniture, and appliances. For me, most of the charges are made in things that I would have to write a check otherwise (or direct debit) or pay in cash. I could always go back to my pre-1980 spending mode with a check book and a wallet full of money. But that would make me a much higher risk of getting robbed and never getting reimbursed.

Anonymous963 posts since
May 9, 2010
Rep Points: 1,819