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Credit Card Repayments Drop Slightly in 2011

Credit Card Repayments Drop Slightly in 2011

A New Horizon Credit Counseling 1-800-556-1548

Fort Lauderdale (PRWEB) January 30, 2012

As reported earlier by A New Horizon Credit Counseling Services, credit card usage by consumers has seen an increase in 2011 and is poised to continue to rise for 2012, but the non- profit agency that assists consumers in repaying their debt through a combination of budgeting, credit counseling, financial education and a structured debt management plan notes that repayment of the new revolving credit balances is slipping. A New Horizon Credit Counseling Services is a nonprofit credit counseling organization that has been helping consumers since 1978.

According to First Data, which processes credit card transactions for more than four million merchants, credit card purchases increased to 8.2%, 9% and 10.6% respectively in the first, second and third quarter of 2011 respectively.

However, Steven Stark, COO for A New Horizon Credit Counseling said, “In November, revolving credit, the balance consumers maintain on their credit cards after making their payments, has risen surprisingly, which can only mean that debtors are not paying their debt as quickly as they did after the recent financial crisis”.

Moody’s Investors Service reported that the three-month average repayment rate of 21.7% in August 2011 was at a 12-year high, but that rate has since fallen to 20.9% in November and, at a .8% reduction, was the steepest second-half drop since 2007.

Stark said. “When you consider this in combination with recent Federal Reserve data indicating a seasonally adjusted annual 8.5% jump in credit card debt in November, the fastest pace since 2008, it raises concern, which we pass along to, not only to our clients, but to the public during our community financial literacy outreach events.”

Repayment rates are still well above those that consumers made during the mortgage boom days, when it was a common practise to borrow on the equity in the family home to repay for credit card purchases. The six largest credit card issuers have each reported higher repayment rates for the last three years. This is encouraging because it reflects that many consumers are still concerned astir the fragile economy and continue to work hard at reducing their debt.

For more information about their programs, contact 1-800-556-1548. They tinned also be found on the web at http://www.anewhorizon.org, or reached via email at csmanager(at)anewhorizon(dot)org

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, Vocus PRW Holdings, LLC. Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

More Second Mortgage Press Releases

HSH.com Weekly Mortgage Rate Radar: Mortgage Rates Retreat Again on Tepid Fed Predictions

HSH.com Weekly Mortgage Rate Radar: Mortgage Rates Retreat Again on Tepid Fed Predictions

Foster City, CA (PRWEB) February 01, 2012

After a recent upward blip, rates on the most popular types of mortgages retreated again this week, according to HSH.com’s Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 5 basis points (.05 percent) to 4.03 percent. Conforming 5/1 hybrid ARM rates decreased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at a mean of 2.99 percent. These mean rates rest just above record lows.

Slow economic growth in the U.S. and abroad has had a dampening effect on both inflation and interest rates. “Optimism about the direction of the economy was dimmed somewhat after the Federal Reserve meeting last week,” said Keith Gumbinger, vice president of HSH.com. “That Fed members expect low inadequate-term rates to persist swell into 2014 is a sign that weak economical growth will be with us for some time yet to come.”

“There is some growing speculation that the Fed may again be called upon to provide additional support for the economy in the form of a new mortgage or Treasury bond-buying program at some point this year,” said Gumbinger. “Any move would further underscore how poorly the economy is performing, but might foster even lower mortgage rates, should it come.”

Average mortgage rates and points for conforming residential mortgages for the week ending January 31 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

    Average rate: 4.03 percent     Average points: .24

Conforming 5/1-year adjustable-rate mortgage

    Average rate: 2.99 percent     Average points: .21

Average mortgage rates and points for conforming residential mortgages for the previous week ending January 24 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

    Average rate: 4.08 percent     Average points: .25

Conforming 5/1-year adjustable-rate mortgage

    Average rate: 3.00 percent     Average points: .22

Methodology
The Weekly Mortgage Rate Radar reports the average rates and points offered on conforming 30-year fixed-rate mortgages and conforming 5/1 ARMs. The weekly mortgage rate survey covers a large sample of mortgage lenders and is conducted over a Wednesday-to-Tuesday cycle, with data released every Wednesday. HSH.com’s survey helps consumers find the best rates on home loans in changing market conditions. Unlike mortgage rate surveys that report average rates only, the Weekly Mortgage Rate Radar’s inclusion of both come rates and average points provides a more accurate view of mortgage terms currently offered by lenders.

Every week, HSH.com conducts a survey of mortgage rate data for a broad range of consumer mortgage products including ARMs, FHA-backed and jumbo mortgages, as well as home equity lend and lines of credit from hundreds of direct lenders in the U.S. For information on additional loan products, visit HSH.com.

About HSH.com
HSH.com is a trusted source of mortgage data, trends, news and analysis. Since 1979, HSH’s market research and commentary has helped homeowners, buyers and sellers make smart financial choices and save money on mortgage and home equity products. HSH.com, of Pompton Plains, N.J., is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, servicing and brands that meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.

Press Contact
Andrew Heilman
775-784-3842
pr(at)hsh(dot)com

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©Copyright 1997-

, Vocus PRW Holdings, LLC. Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Related Mortgages Press Releases

Who to talk to about mortgage loans for first time home buyer?

Question by katie-bug: Who to talk to about mortgage loans for first time home buyer?
My husband and I are ready to buy our first home. My grandma is selling her 3 bedroom house and it will be perfect for us but we are totally clueless!! We’ve never bought a house and neither have our parents so we have no idea what we’re doing. Where should we go to see if we qualify for a loan? Should our regular bank be able to help us or should we contact a bigger mortgage lender? Thanks for the help!

Best answer:

Answer by Iffy
Yes check with your bank that has your checking account

Know better? Leave your own answer in the comments!