A consumer’s credit card activity can be a key indicator of whether or not they can afford their mortgage, it has been suggested.

Investopedia has set out a list of tell-tale signs that point to mounting financial trouble and the likelihood of mortgage default.

These include the practice of only making the minimum repayments on credit cards, with Investopedia noting that this can lead to expensive debts building up over time, thereby hindering a person’s chances of keeping up with home loan repayments and other obligations.

“In your mind, paying the minimum due on each bill may mean you are keeping up with your financial commitments, but financial experts know that minimum-only payments are a key indicator of financial distress,” it said.

“While this may mean that you carry too much debt, this also means that all your income is barely covering your spending.”

Consumers aiming to limit their debts could choose to compare credit cards in search of the best options. Read full article…

We all know what a pain in the keister it is to deal with a stolen credit card, or at least we can guess. If you’ve never experienced it yourself, you probably know someone who has. Yours truly once had a whole wallet full of cards stolen, and I can assure you, it’s no picnic.

But that’s not the worst thing that can happen with a credit card theft. Someone might go hog-wild with a credit card you even never knew you had.

Now wait a minute here!

Everybody knows you’re supposed to keep a close eye on your credit card statements. This simple step saved the bacon for a friend of mine, who used to work as an archaeologist for a company in New Orleans.

One day, the CFO called him in and asked, “Why did you spend $500 on your company MasterCard at this gas station across town?” And my friend, confused, said, “I don’t have a company MasterCard.

Read full article…

Credit card users in Australia could be tempted to compare the market following an announcement by a leading financial institution.

National Australia Bank (NAB) has announced that it is to reform the way payments and balance transfers are managed on its credit card accounts.

The move, which NAB said is the first of its kind by a major bank, is set to lead to lower interest payments for credit card users.

More than 1.5 million customers will benefit from the moves, which come after pressure from consumer advocacy groups and are in line with proposals made by the Federal Government during the recent election campaign.

Lisa Gray, NAB’s personal banking group executive, said: “Consumers may be unaware that typically across the finance industry their credit card repayments are used to pay off balances attracting the lowest interest rate first, leaving the higher interest balance to attract interest charges.

“This will no longer be the case for NAB customers. Read full article…

President Obama, sometimes criticized for an excess of coolness, had something close to an “I feel your pain” moment Friday — and that pain was caused in no small part by his personal credit card use.

The moment came as he announced he had appointed Elizabeth Warren as a special Treasury adviser, a role in which she will shepherd into existence a new federal consumer watchdog agency. (See Connie Prater’s blog from Thursday that anticipated Warren’s appointment.)

I could have used that watchdog myself early in my career, the president told those attending the Rose Garden ceremony at the White House.

Before talking about his personal credit card woes, he gave mortgage lenders, banks and credit card issuers a sharp stick in the eye.

“Part of what led to the financial crisis were practices that took advantage of consumers,” Obama said, “particularly when too many homeowners were deceived into taking out mortgages on their homes they couldn’t afford.

Read full article…

I’m a history buff, and I work for CreditCards.com, so I got a kick out of finding the brochure whose cover is pictured at right. It shows a bit of credit card history from an innocent time when credit cards were a new concept.

It’s a long story, but I ran across the brochure when cleaning out a house in South Florida.
I just love the wide-eyed look on the face of the stereotypical ’60s woman, pearls and all: Wow! Free money! Little does she know.

(Aside: Is that hairdo a bob? Or have we discovered an important archaeological artifact: the proto-Bieber?)

The brochure is dated 1965, and it unfolds to reveal a list of about 500 South Florida businesses, concentrated in women’s and children’s apparel, and automotive services.  Times have changed: Four of the businesses were corset-makers.

Read full article…