In the past couple of years, more consumers in a bad situation due to lost income have come to the conclusion that credit cards should be higher on the priority list than their mortgage payments on the prioritization list. As 2009 ended it was determined that twice as many consumers were delinquent with their mortgage payments while paying credit card payments than the other way around.
In the heart of a recession, it looks like consumers are racking up more and more debt and spending more money than what they have. There are a good deal of reasons why credit cards could hurt you financially, but a debit card could be what is putting you over your financial means.
Last article I spoke about the amount of time that negative marks will remain on your credit score. Those ones weren’t so bad. Late Credit Card payments are way more damaging.
Late Payments? Seven Years. A few creditors might show mercy and will wipe out past credit problems if you settle your account immediately. However, a late payment can happen whether your account is thirty days past due, all the way to 150 past due. Seven years from the first day the delinquency was reported will be the day that the information is removed from your credit report. Fortunately, these negative marks are most common and have the least effect on your credit score.
Credit card issuer Capital One Bank and four other companies were sued by West Virginia Attorney General Darrell McGraw for unfair and deceptive practices and bad business conduct. The complaint was filed this week in West Virginia’s Circuit Court and it claims that Capital One hooked consumers into repayment plans by mailing out solicitations disguised as new credit offers.
