Gas Prices Blamed for Late Credit Payments

Gas Prices Blamed for Late Credit Payments
By JEANNINE AVERSA, AP Economics Writer
26 minutes ago


WASHINGTON - The percentage of credit card payments that were past due shot up to a record high in the second quarter as surging gasoline prices strained budgets and made it difficult for some people to pay their bills.

The American Bankers Association reported Wednesday that the seasonally adjusted percentage of credit card accounts 30 or more days past due rose in the April-to-June quarter to 4.81 percent. That followed a delinquency rate of 4.76 percent in the first quarter and was the highest since the association began collecting this information in 1973.

"The rise in gas prices is really stretching budgets to the breaking point for some people," the association's chief economist, Jim Chessen, said in an interview. "Gas prices are taking huge chunks out of wallets, leaving some individuals with little left to meet their financial obligations."

While Chessen mostly blamed high gasoline prices for the rise in credit card delinquencies, other factors also played a role, he said.

With personal savings rates dismally low, people have less of a cushion to absorb the big jumps in energy prices, Chessen said. The personal savings rate dipped to a record low of negative 0.6 percent in July.

Rising borrowing costs also probably contributed to the spike in credit card delinquencies, he said.

The Federal Reserve has been tightening credit since June 2004. That has caused commercial banks' prime lending rate to rise to 6.75 percent, the highest in four years. These rates are used for many short-term consumer loans, including some credit cards and popular home equity lines of credit.

After Hurricane Katrina, gasoline prices jumped past $3 a gallon before calming down. Although damage to oil facilities was less than feared from Hurricane Rita, economists expect gasoline prices to stay high.

The double blow from the two hurricanes is expected to slow overall economic activity and hiring in the months ahead, economists say.

Against this backdrop, credit card delinquencies are likely to remain high in the coming quarters, Chessen suggested.

The association's survey also showed that the delinquency rate on a composite of other types of consumers loans, including auto loans and home equity loans, climbed to 2.22 percent in the second quarter, up from 2.03 percent in the first quarter.

Surprise, surprise! Hopefully the IRS tables will reflect this when they are written for 2006. Hopefully they will also incluse home heating oil as well...

I would also think some of it is contributed to many people filing BK before the deadline and stoped paying their CC's in the last month or so.

Noticed all of this was on the national news last night. Said the credit card companies really took a loss this past month.... (not hardly, with all the fees they charge)...

Minny

I think they will lose much more once the minimum payment they will have to charge will be 4% of the balance.

Noticed all of this was on the national news last night. Said the credit card companies really took a loss this past month.... (not hardly, with all the fees they charge)...

Minny

You're so right! I would still debate anyone,:aggress: anytime that their profits will fall with all the coming changes of the laws and the min requirement. People will be so scared about the new tougher laws that they will be afraid to use cc's and that will reduce profits even more.

I will predict over 5 million ch13 bk filings by this time next year due to the high minimums. The millions of folks not informed of the changes will need any kind of relief they can get.

The problem is not the price of gas. It's the inefficient consumption of it. Gas prices in Europe have always been much higher than here, and yet you never see a European resident screaming bankruptcy over it.

People here generally choose fuel-inefficient cars and live very far from work. Gasoline is a non-renewable resource. Eventually supplies will run out. Even while there are still reserves in the ground, there comes a time when the cost to extract it increases exponentially.

Instead of placing blame and whining and complaining, look at your consumption. What are you doing to help conserve the energy source and your money? Or what are you doing to harm them?

Honestly the higher prices that the market is driving upwards may finally help the situation. It may now be pratical for alternative fuels and sources to be developed and we can also do more drilling here in the US. Hopefully the spineless polititians will relax some of the tough standards to build new refinerys as well. Our economy and population are growing and demanding more energy, but we aren't doing a whole lot to build up the energy sources simply beacuse of politics. This is one reason why 2 years ago we had the major blackout. Nothing new has been built in 20 years.

Hybrid and Rail. NEEDED

I am partial to rail, we are woefully behind. I believe that we could go alternataive within ten years. We are also VERY resourceful and powerful.

The problem is not the price of gas. It's the inefficient consumption of it. Gas prices in Europe have always been much higher than here, and yet you never see a European resident screaming bankruptcy over it.

No kidding sonny, but take a look at THEIR rules for BK..Crimminy! You'd be better off just leaving the country in some cases...In comparison to the US laws, even with the new ones coming into effect, they are STILL lax compared to UK laws.

http://www.insolvency.gov.uk/guidanceleaflets/guides.htm#1


People here generally choose fuel-inefficient cars and live very far from work.

Actually, the REASON they live far from work, is usually the cost of living close to their worksite. In addition, there's more then ample evidence someone making $7 and hour can't afford a $15,000 gas sipping vehicle. And frankly, that's low, VW is usualy $20K or higher.



Instead of placing blame and whining and complaining, look at your consumption. What are you doing to help conserve the energy source and your money? Or what are you doing to harm them?

Well, considering that most here (Including you for gosh sakes!) don't have a degree in metalurgy and tool & die experience. The only way to get from point a to b is to use some method of travel..Some are faster then others, but also what we are provided with, is basically not in our hands..We can DEMAND a electric car which gets 5000 on a single charge or such..But that won't happen until it becomes worth it to the automakers.

And I haven't heard any whining frankly..Except from you about others who are simply voicing opinions which you seem not to like..(go figure) :angel:

Noticed all of this was on the national news last night. Said the credit card companies really took a loss this past month.... (not hardly, with all the fees they charge)...
Minny
They can charge all the fees they want. You don't have to incur them. I've never paid a late fee or an over-the-limit fee.

Wouldn't it be great if their loss was a result of a smarter consumer base? Remember, you have so much control over your finances. You can surrender it or embrace it.

No kidding sonny, but take a look at THEIR rules for BK..Crimminy! You'd be better off just leaving the country in some cases...In comparison to the US laws, even with the new ones coming into effect, they are STILL lax compared to UK laws.
http://www.insolvency.gov.uk/guidanceleaflets/guides.htm#1
I was referring to bankruptcy as the result of high gas prices. How many times have you been to Europe? And how many SUV's and pick-ups did you see in the cities?
Actually, the REASON they live far from work, is usually the cost of living close to their worksite.
"Cost of living" includes housing and transportation. If a family decides to live far away to save money in housing, couldn't they be losing more in transportation?
In addition, there's more then ample evidence someone making $7 and hour can't afford a $15,000 gas sipping vehicle. And frankly, that's low, VW is usualy $20K or higher.
What the heck is someone who makes $7 an hour doing buying a $15,000 - $20,000 car? Have you ever heard of used cars? I'd speculate that people making near-minimum wage are not likely to own newer cars nor live in distant suburbs (in relation to their job).
Well, considering that most here (Including you for gosh sakes!) don't have a degree in metalurgy and tool & die experience. The only way to get from point a to b is to use some method of travel..
This isn't a revelation. Everyone has to get from Point A to Point B. Some walk, some bike, some take a motorcycle. Some take a Lexus. Some take the bus. Some take a train. Some carpool. It's about making smart choices.
Some are faster then others, but also what we are provided with, is basically not in our hands..We can DEMAND a electric car which gets 5000 on a single charge or such..But that won't happen until it becomes worth it to the automakers.
I don't own an electric car, and I don't spend a fortune on gas every week. There are more than two choices (gas-guzzler vs. electric). You actually have quite a bit of control over fuel efficiency. I read an article this week at CNN Money on how many people can save more money on gas with their current cars than they could if they purchased a hybrid.
And I haven't heard any whining frankly..Except from you about others who are simply voicing opinions which you seem not to like..(go figure) :angel:
I didn't start this thread by posting an article blaming gas prices for bankruptcy filings. I'm certainly not complaining or whining. I don't have a problem paying for gas for my car. I'm the only one at work not whining and complaining about it. Maybe someone else will post here about their fuel-efficient ideas so they can help others too.

We adjusted to gas prices by trading vehicles (dh & I). He has a truck, V8 engine, so not the greatest on gas mileage. I have a car, a galant, much better. DH drives about 100+ miles a day for his part time job, 5-6 days each week. I drive 12 miles each way 5 days a week. His pt job reimburses him for mileage, not for actual gas used. It made more sense to us for the most miles to go into the vehicle with better mileage. He fills it 2X each week, I can go 2 weeks on a full tank. When he used the truck-before prices go SO bad, he was filling it up 3X each week and its a bigger tank.He gets back about $150 per week in mileage reimbursement so that covers his gas, a monthly oil change and some other maintenance here & there. (Goes thru brake & tires more often than normal.)

I was referring to bankruptcy as the result of high gas prices. How many times have you been to Europe? And how many SUV's and pick-ups did you see in the cities?.

First, this is not a travel forum, second Landrover is also more popular in the UK then the US..So while I don't jet off to the UK, I see more then enough.


"Cost of living" includes housing and transportation. If a family decides to live far away to save money in housing, couldn't they be losing more in transportation? .

There's a host of reasons why a family would live far from the city, and cost of rent wouldn't be the problem...Many people have pets (I know, you'd tell them to put them down anyway) Some have 4-6 kids and prefer them living in the country.


What the heck is someone who makes $7 an hour doing buying a $15,000 - $20,000 car? Have you ever heard of used cars? I'd speculate that people making near-minimum wage are not likely to own newer cars nor live in distant suburbs (in relation to their job). .

Well, you were speaking about inefficent vehicles, but not everyone can afford the latest technology. I cannot count the itme I saw people on the side of the road with a disabled vehicle and they barely had the money for repairs...Those who make little, have little choice.



This isn't a revelation. Everyone has to get from Point A to Point B. Some walk, some bike, some take a motorcycle. Some take a Lexus. Some take the bus. Some take a train. Some carpool. It's about making smart choices..

When you're barely making enough to provide for the family, you are limited on choices..Few are smart, you have to choose the one "Least Painful"


I don't own an electric car, and I don't spend a fortune on gas every week. There are more than two choices (gas-guzzler vs. electric). You actually have quite a bit of control over fuel efficiency. I read an article this week at CNN Money on how many people can save more money on gas with their current cars than they could if they purchased a hybrid..

I also don't spend a fortune on gas (Thank goodness I could AFFORD the Grand Am I bought years ago) but I have seen many people (At my work, which pays low) who have little choice, they live far due to previous work which ended and so, they take what they can. Carpooling only works if the same people have the same schedules..


I didn't start this thread by posting an article blaming gas prices for bankruptcy filings. I'm certainly not complaining or whining. I don't have a problem paying for gas for my car. I'm the only one at work not whining and complaining about it. Maybe someone else will post here about their fuel-efficient ideas so they can help others too.

Why don't you post YOUR ideas..Or do you even have any? Beyond the lame ones already presented?

What about the major difference in the size of the country? Europe is rather small when compared to the U.S. Everything is at or near the big cities there. Of course gas is not going to be much of an issue. Those countries, like Japan and China, dont live as comforable like most Americans do. The majority of the people are crammed in hotel looking apartments with a 4x4 balcony and walking/riding their bike to work. Mostly its the well off driving/getting Chauffered to and fro. So all in all...The gas prices here are hurting mainly our farmers/hunters/country folks, like myself, that want to live a quiet and homebody type of lifestyle away from the crazy comotion/pollution/city noise. But yet that is where our jobs, groceries, and everything else people need to live, is at. If our entire population was crammed into 10 major cities...of course we could affor $7 dollars a gallon because 1/2 the people would not be driving and if you did drive it would only be a small amount in a little zoom zoom zoom vehicle.

~soldout~

Lightening, - you DON'T want to butt heads with me today....... BAD DAY..........

Minny

I agree with soldout. I do choose to live away from a major city for my own reason, less crime, small school and help my family with a working farm. I drive approx 150 mile round trip to work. I do not have a SUV just a small toyoto celica. I would also take approx 10-12 $/hr pay cut if I had to find work closer to home. I don't mind higher gas prices, if there were a reason for it, but considering the oil industry last yr made over 100 billion dollars, above their operating cost, is an issue I have. the are making a large amount of money off the "little people" again. I also would like to buy a hybride vehicle but they are outrageously priced #1 and since they only use their electric motor for city type driving, it wouldn't actually be saving me money ( already spoke with toyoto dealer about it)

The problem is not the price of gas. It's the inefficient consumption of it. Gas prices in Europe have always been much higher than here, and yet you never see a European resident screaming bankruptcy over it.

People here generally choose fuel-inefficient cars and live very far from work. Gasoline is a non-renewable resource. Eventually supplies will run out. Even while there are still reserves in the ground, there comes a time when the cost to extract it increases exponentially.

Instead of placing blame and whining and complaining, look at your consumption. What are you doing to help conserve the energy source and your money? Or what are you doing to harm them?
Lightning,
are you intentionally trying to tick of people or what? It seems like what ever you post it is a gouge at someone. are you actually that sarcastic all the time??? you need to lighten up or find someplace else to post. this board is suppose to be a support board not a place for your opinions

Whether it's gas prices or medical coverage the whole argument being made about "Europe does this, Asia does that" is a complete JOKE! We ARE THE BEST nation in the world :yes2: and just need an energy policy in place to support a growing population and growing economy. I don't plan on driving a scooter to work like the Europeans do. Thousands of people every year get on the boats and come HERE! The reason has to be because we are the BEST!
The positive that the high prices may bring is it will be more practical to get more sources of energy such as drilling here or recovering shale (oil from rocks) and clean, safe nuclear power, more advanced, affordable hybrid autos, etc.

I agree with you, hhou812hh.

We need other sources of energy. In the meantime, we do the best we can with what we have. Make the best choices.

I haven't heard or read any factual evidence that "big companies" are deliberately hurting the "little people". It looks like supply and demand to me. There's a finite supply (of which we import a lot) and incredible demand (the US has one of the highest oil consumption rates per capita).

The price of everything has gone up over time including things like milk, coffee, and bread. There's no reason to think gas would be any different. Given that oil is non-renewable, we have to expect the price to continue to increase in the future. The best we can do as a country is to look for alternative fuel sources and conserve what sources we have.

I agree with you, hhou812hh.

We need other sources of energy. In the meantime, we do the best we can with what we have. Make the best choices.

I haven't heard or read any factual evidence that "big companies" are deliberately hurting the "little people". It looks like supply and demand to me. There's a finite supply (of which we import a lot) and incredible demand (the US has one of the highest oil consumption rates per capita).

The price of everything has gone up over time including things like milk, coffee, and bread. There's no reason to think gas would be any different. Given that oil is non-renewable, we have to expect the price to continue to increase in the future. The best we can do as a country is to look for alternative fuel sources and conserve what sources we have.


Interesting that everyone claims that oil is non-renewable, and that we are "running out." Considering that oil is a natural resource, and comes from the ground, I should that, that it, like trees and water, would replenish itself. However, I am not a genious, but that's how other natural resources work, right?

Supply and demand is crap when rich Arabs are living in multi-level homes, and are supplying terrorists with money and resources to bomb and terrorize us. Interesting how they hate us, but love our American money.

I am all for drilling in the Alaskan Wilderness, and for taking our money back in oil from Iraq. I also believe that there are millions and millions of barrels of oil stockpiled somewhere, and that while we are paying out the wazoo, someone's pockets are getting too fat. I also think that our President has a strong conflict of interest with all the oil stock that he has as well. (REMEMBER: GAS HAS GONE UP MORE THAN A DOLLAR IN LESS THAN A YEAR! IT STAYED ABOUT THE SAME THROUGH THE 1990'S HOVERING AROUND A DOLLAR A GALLON. REMEMBER?)

I am sorry that some people think it's perfectly acceptable that gas has gone up so much in less than a year, and that the people getting very rich off of it are the same ones that want us dead. That really ticks me off.

Lightening, reading your opinions today I find myself simply tuning you out. Have you read the Book: Dark Side Of The Light Chasers, by Debra Ford? It's a great book. She does lots of counseling with people like you, helping them to own within themselves the things that tick them off about others. Since you mentioned "complaining and whining" today, I conclude that you, in fact, are a closet complainer and whiner yourself. I also conclude that you've made some very poor choices somehwere, partly because you tell everyone how you have not.You are the only one who does not complain at work? Really? Until you learn to love and accept that part of yourself that makes poor decisions, is ignorant and complains and wants to cry and blame someone else, you will continue to seek Forums like this with an audience you perceive to be weak and powerless to express your anger at yourself. I am here for information to help me make an informed decision about the best course of action. I am not complaining, nor whining, and I'm tired of reading your self righteous verbal attacks on innocent people.

Bravo Copper 2, BRAVO!!!:clapping:

Copper 2 - that is the niceset advice given in the best spirit to Lightening yet. I needed a really good laugh today. I will suck it up and apologize for it being at someone else's expense. :cool:
My flooded yard, needs a little dirt to go with all the water. I swear my yard is more under water now than I have ever seen it, even duting hurrican Floyd with the flood, had to leave warok early and take vacation because I couldn't get around today to do my job. (see, lightening I don't use my time irresponsibly, I know that is your next comment, I will actually roll over vacation to sick time , because I can only carry so much time)::unsure:

I will keep this brief -:aggress: :beee: Lightening please take that d*!! tarnished fake silver spoon out of your mouth with the false teeth. Take off your mirrored shades and look at the real world and realize life aint fair and if you can do a better job run for office, after all you might even get one vote - yours.
You must lead a lonely life to pick on people you don't know.:beee: NOW, I will try my best to get off my soapbox and stop venting and try to relay fears, offer some kind advice and lend a shoulder to those in need, in other words to try and do what others have done for me in this forum.
Thank you also for the oppurtunity to vent - I feel better than I did when I received my discharge in the mail & that is the truth!!!!!!!!!!!!!!
Have a great day everybody.
(hope not to offend any of the others here):yahoo: :D

A recent AAA study said if your tires are under inflated by 10 psi, you could be losing 4.6 miles per gallon and what with the prices today, this can total about $7.60 PER TANKFUL!

I went shopping and saw one of my tires are low..So, I have my mini-compressor, so I'll be "Notching" those little gas thieves up.

copper2 - I too applaud your response to Lightning; my sentiments exactly. He sounds like the poster child for the self-righteous. Such a stellar individual to sit on his ivory throne in judgement of others. This is indeed a support group and his holier than thou opinions are neither warranted nor appreciated. He is not our judge and jury. Someone put a stop payment on his reality check if he thinks we are going to tolerate, much less embrace, his superior attitude about what we should or should not do. We all chose a very difficult and painful route to financial freedom at a cost we all knew would have consequences. My advice to him would be find another forum; I am sure there is a utopia out there somewhere.

I agree with both Tin and Lightning. I do not buy the notion that oil is unrenewable or that we are running out. It may not renew at the rate of usage but it does renew. There never were enough Dinosaurs to account for the amount of oil we've consumed.

I do believe that the US has the power to quickly convert to alternative fuels though. It seems to me that we are securing the supply for the third world countries that are just emerging from the 19th century.

As to price hikes recently, I don't know all the factors. I do know that few refineries have been built over the last thirty years. Also China and India are becoming major players economically and have a thirst for oil that may be difficult to quench. Refineries require large investment, lots of land and are a huge terrorist risk overseas. Given all of these factors I still can't figure the sudden hike in price.

With gas prices rising, people are having to make "choices" of what to pay..... buy gas to get to work - or pay the credit card companies......
Its a no win situation here....
Many folks are making the choice of gas over medicines to be able to get to work....
WHAT A SHAME THAT OUR SOCIETY HAS COME TO THIS!!
Yes, something needs to be done about the gas situation.
Our nation "relies" on other nations - way too much on natural resources....
Cost are high, shortages are real and controlled by foreign countries...

I recently heard on the news that utilities (gas, electric, propane) will be up to 5 TIMES HIGHER this winter than last winter.

Its bad when your "heat bill" is higher than your mortgage payment!!!

Any suggestions, folks!

Minny

I remember when gas prices skyrocketed back in like 99-00.........and I thought those prices were high! lol Hopefully, prices will be slashed by $1.00 pg gallon by years end!

I agree with Todd, it is possible and to some extent likely.