LowCards.com Weekly Credit Card Update–May 24, 2013
What’s In Millennial’s Wallet? Fewer Credit Cards
Millennials are more financially cautious than the stereotype of the spendthrift twenty-something. Some experts say their habits echo those of another generation, those who came of age during the Great Depression and forged lifelong habits of scrimping and saving. More young households had no credit card debt in 2010 than was the case in 2001. Among those who did owe on their credit cards, the median amount fell from roughly $2,500 to less than $1,700. Story by Emily Alpert for the LA Times.
Class of 2013 Grads Averages $32,500 in Debt
Between ballooning student loans, credit cards and money owed to family members, grads are facing an average $35,200 in college-related debt, a Fidelity survey of 750 college graduates shows. The bulk of the class of 2013’s debt is in government loans. They also had an average of $13,000 in personal and family loans and $3,000 in credit card debt. 92% say they will pay back their debt using income from their job. Story by Blake Ellis for CNN.
Retailers Shun Deal on Card Fees
Several large retailers, including WalMart, Costco,and Starbucks are opting out of a pending class-action settlement with Visa and MasterCard potentially setting the stage for more battles over transaction-processing fees. By opting out, the retailers forfeit their right to monetary payments set to go to merchants that accept Visa and MasterCard credit cards. Separately, the National Retail Federation said it also plans to object to and opt out of the settlement. Story by Andrew Johnson for the Wall Street Journal.
How to Make Sense of a Credit Card’s Terms and Conditions
A zero percent introductory interest rate and a juicy rewards program sounds good, but most close with the words “terms and conditions apply.” Digesting the high volume of information is complicated for many people. While it is up to you as the consumer to make sense of the fine print, you can avoid most of the grunt work by asking issuers the right questions. Story by Daniel Bortz for U.S. News.
Credit Card Debt and Delinquencies Fall in First Quarter of 2013
According to the latest report from TransUnion, the average credit card debt per borrower fell 1.7 percent to $4,878 in the first quarter of 2013, down from $4,962 a year ago. It declined 4.8 percent from the $5,122 in fourth quarter of 2012 when consumers charged their holiday shopping. The credit card delinquency rate–defined as payments at least 90 days overdue–dropped to 0.69 percent in the first quarter of 2013 compared to 0.73 percent a year ago. In addition, this rate represented a 18.8 percent seasonal decline from the 0.85 percent posted during the fourth quarter of 2012. Story by Bill Hardekopf for LowCards.com.
Harry Reid Punts Richard Cordray Nomination Until July
On Tuesday, Senate Majority Leader Harry Reid pulled back a vote on the confirmation of Richard Cordray to lead the Consumer Financial Protection Bureau. Reid indicated he would bring Cordray’s nomination to a vote in July. Story by Ryan Grim and Jennifer Bendery for the Huffington Post
LowCards.com Weekly Credit Card Rate Report
Based on the 1,000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.27 percent, slightly above last week’s average of 14.26 percent. Six months ago, the average was 14.30 percent. One year ago, the average was 14.35 percent.