Eileen Soherty, the director of the Colorado Gerontological Society says “[senior’s are using credit] for gasoline, they’re using it for food, they’re using it for prescriptions, they’re using it for copayments.”  Doherty also mentioned that in many cases, seniors are using credit cards to help their adult children with expenses.

Aside from the usual problems that come along with credit card debt such as poor credit, those over 55 who are retired often face a special set of problems.  Often, without much income, seniors are often forced to keep up with credit card bills on a very fixed income.

While in a recent poll, 40 percent of American had raked up credit card debt and stated that they were not concerned about how they were going to repay it, experts predict that most seniors are actually quite different than their younger American counterparts.  Kim McGrigg of Money Management International says she believes many seniors actually are very concerned about their money problem, but are too quiet and proud to discuss their issues.  Credit repair experts note that when faced with credit card debt or poor credit, it’s important to seek out expert solutions including consulting with a credit repair specialist. 

Doherty of Colorado Gerontological notes that seniors should try to refrain from using plastic to pay for prescriptions and copays in order to avoid debt and bankruptcy.  Instead, she recommends seeking out different insurance, a medical insurance supplement, or a charitable organization to help pay for the costs.  There are also many credit counseling services that are available to seniors.  Seniors should check their local listings for help and remember that they can always contact credit repair specialists when in need.

According to the report, Chicago-based firm TransUnion conducted its regularly quarterly analysis of trends in the credit card industry.  Their findings show that Iowans  had average credit card debt of $3,807 in the third quarter, up slightly from $3,792 in the second quarter of 2010 but still the lowest in the nation.  Iowa is closely followed by North Dakota and South Dakota who rank second and third in the nation for the lowest average credit card debt per household. 

Other interesting findings in the TransUnion third quarter analysis include the fact that Alaskans rank the highest in the nation when it comes to average household credit card debt, with a whopping average per household of $7,159.  Hawaii and North Carolina were found to have the second and third highest average household credit card debt by state with averages of $5,716 and $5,640 respectively. 

Despite the fact the average American has a few thousand dollars in credit card debt and a mediocre credit score, TransUnion found that more than 8 million consumers stopped actively using bank issued, general purpose credit cards over the past year, a finding that many analysts are taking as a sign of overall more conservative spending habits of consumers as a result of the recent trying economic times. 

Ezra Becker, vice president of research and consulting in TransUnions financial services business unit, noted that “The vast majority of the consumers who do not possess or have stopped using credit cards continue to have and use other forms of revolving and installment credit, and of course still need to pay for necessities.”

Credit industry professionals and financial analysts await future quarterly credit card industry trend reports in order to track whether or not consumer behavior, consumer credit, and consumer debt will be changed for the long term as a result of the recession.  Currently, Americans in each of the fifty states continue to seek the assistance credit repair specialists to help repair damage done to their credit through debt, default, and other uncontrollable circumstances.

Greatly in need of credit repair, or seeking to prevent the need for credit repair, many Americans are left wonder, “Just what affects my credit?”  Since credit is comprised of both a detailed credit report and credit scores, as reported by the three major credit agencies, it is important to know what affects your credit report as well as what could lower a credit score. 

Your payment history is the most well known factor that contributes to your credit score.  Its also luckily one that can sometimes be controlled by personal responsibility and planning.  Paying your bills on time is essential to keep your credit score up.  If you think you are going to have a problem making payments on time in the future, don’t simply avoid the issue.  Contact your creditor to notify them.  While this may not completely remedy the situation, it ensures you are doing all you can to work with them.

Current debt ratio is reflected by how much credit you are using versus how much credit you have.  Credit scores will drop if you consistently carry balances that nearly max out your credit limits across cards.  Remember to keep as small a balance as possible on cards, and make timely payments to maximize your score. 

Remember that your credit history can affect your credit score.  It generally helps to have a longer history of doing business with credit card companies.  If you have zero balances on lines of credit that you have not used in years, your score could drop. 

New credit applications and types of current credit can affect your credit score.  Credit scores do account for the previous 12 months worth of inquiries.  If you are opening too many accounts at once, this could hurt your credit score.  Some experts include that a mix of lines of credit, for instance some credit cards, a student loan, and a mortgage, rather than many similar credit cards, may be better for your credit score.

As U.S. consumption continues to outpace income, foreclosures increase, and young adult and student debts become more and more of an issue, the desperation to pay down debts continues to grow.  

Debt is a serious issue all over the country.  In a recent letter to a South Oregon newspaper, a man asked advice columnist Bruce if he should raid his retirement account to pay off debt.  Such letters exemplify the extreme measures people are contemplating to try to solve their debt problems. 

The advice seeker complained of having $15,000 in credit card debt, not much unlike the average American.  On top of $15,000 in credit card debt, he also held $9,000 in loans.  While this individual’s loans were not specifically student loans, many students face a similar situation with an amassed combination of student loan and credit card debt. 

With interest rates on credit cards and many loans remaining high, the advice seeker mentioned that although both he and his wife work, they do indeed live “paycheck to paycheck” while trying to pay down debts.  With a lack of places to turn, the man, who only identified himself as “Greg,” asked the newspaper columnist if he should indeed tap into his $66,000 in retirement savings to pay doubt debt.  

In a sentiment shared by many credit repair specialists, the advice columnists advised Greg against raiding his retirement account.  It was advised for him to sit down with a debt relieft specialist and, if needed, a credit expert specialis instead to look into better solutions and lower interest settlements.

By doing so, families can reduce reliance on loans and credit cards, and earn interest to help children save for and attend college.  Theoretically, students will then come out of school with less debt, and possibly even better credit scores.  

According to FinAid.Org, overall U.S. student loan debt in June reached more than $850 billion, a number that now surpasses the country’s total credit card debt for the first time ever.  Although student loans may not directly affect young adult’s credit score traditionally, the debts owed can have a domino effect.  As some struggle to pay off student loan debt, they may be forced to rack up credit card debt just to make ends meet, a vicious cycle that is ultimately damaging to credit score.

A recent report by Ingrid Jacques of the Jackson Citizen Patriot advises families that saving even just a few dollars a week can pay off big later, helping future college students to stop the cycle of debt in its tracks.  With families struggling today, however, just to keep food on the table, a roof over their heads, and to pay off their own current debts, early saving for children’s college funds can be tough.  Experts advise that families assess their own current financial health before doing so.  Kevin Snow, a financial adviser with CP Federal Credit Union advises that families address their own credit card debt and other debt before putting money away for college. 

 Since current credit card debt and loan debt can hurt a parent’s credit score, it only makes sense that those same parents are mindful since their credit score may determine the interest rate of any student loans taken out in the future.  Paying college remains a tricky situation for many families today.  While planning for college, to pay down debt, or to repair credit, it is always important to consult with experts who know best, including those that deal with credit repair.

As a recession set in and banks became swamped in bad debts as a result lenient lending behavior and risky consumer behavior, banks and credit card companies become much more stringent in their who they loaned to.  Lenders began to lower credit limits and retract low interest and 0% transfer offers that often attracted consumers that were already buried in debt.   

In 2009, many financial experts predicted that such offers would be gone for years to come, if not for a very long time.  Instead, in 2010, we’ve seen a quick return of such offers, being initiated by most of the major credit card companies.  Credit experts note that while these offers were common in the past, they are now usually only offered to those with excellent credit.  Also, while these offers may look like a good option, new stipulations often indicate trouble for borrowers in the fine print. 

Recent reports have shown that more and more consumers are becoming confused by the recent offers.  Key areas of confusion include which offers are best, new transfer fees, and how payments are applied.  When it comes to finding out which offers are the best, experts recommend checking bankrate.com to compare offers.  There you’ll be able to find out transfer fees are associated with each low balance transfer offer.  Today, transfers are usually about 3-5% of the balance, but you can expect to see rates as high as 7%.  Consumers can also check out how payments are applied and whether they’ll be expected to pay interest on the original balance, or simply the remaining balance at the end of the low interest period.

Credit repair specialists advise that it is very important to remain cautious with such offers.  Getting caught up in high transfer fees and ballooning interest rates, could put you in more debt, further damaging your credit score.

 The recent report states that the rate at which Chase wrote off credit card balances it could not collect (bad debts) was the lowest of the year in October.  The charge-off rate feel from 7 percent from last months, 7.78 percent. Chase also reported that, after the numbers were “tallied up” for October, they also revealed that the rate of which its customers were falling behind on their payments was at a yearly low as well.  Chase’s rate of payments late by 30 days or more dropped from last month’s 3.82 percent to 3.81 percent, down from it’s to out last December at 4.94 percent. 

 Although the trends reported by Chase seem promising, it is important to remember some experts remain skeptical as to whether long term credit holder behavior will be changed.  Others point out that the downward trend reflects a movement toward lower overall credit card debt nationwide.  

The Federal Reserve has reported that the total revolving balances for consumer credit, which remains mainly credit cards, dropped between September and October down to the lowest rates since the end of 2005.  A combination of factors such as consumers vigilantly reducing balances and credit card companies cutting customer’s credit lines are expected to have contributed to the recent downward consumer debt trend.  

While this is good news for many, with unemployment still high and mortgage and credit regulations getting tighter every day, many individuals will continue to require the help of a credit repair specialist in order to ensure a good credit score.  Ever after debts are paid down, credit scores could still remain affected, needing some repair.  Credit repair specialists are trained in helping to repair the bad credit that results from the overwhelming debt many consumers still continue to face, or have faced in the past.

Although this may seem logical to some, others question just how fair this practice is.  Since  one’s credit can be hurt by a spouse’s irresponsible behavior or by other factors that an individual has limited control over, prying into the financial lives of a prospective employee may unfairly discriminate against them.  This leaves many without a job they may very well be capable of handling, and ironically, only adds to their financial and credit woes.  For this reason, some state legislatures have begun to look into regulating or eliminating this practice.     

Yesterday morning the New Jersey statehouse bureau issued a release reporting that a bill to ban credit checks on current and prospective employees advanced in the Senate Labor Committee yesterday by a party-line vote of 4-2.  The bill, which is a comibination of measures by state Sens. Shirley Turner and Nia Gill, will now be considered by the full senate. 

The bill is aimed at helping avoid the aforementioned “catch 22” for those hit hard by the recession.  Exceptions to the bill include that employers may still conduct credit checks for jobs that include a large amount of money handling, managing accounts or financial information.  

The direction that this bill goes in, whether its ultimately passed or thrown out altogether, should be interesting to follow as it could possibly set the precedent for whether similar bills will be created from state to state in the future.  In the mean time, it’s important to realize that employers can still can run credit checks on employees, and are likely to find several loopholes allowing them to do so in the future regardless of regulations.  As an employee or interviewee its always important to be armed with your best possible credit report and to seek the help of a credit repair specialist when your credit is in question.

Firstly, The Investopedia study revealed that the average American household has over $15,000 in credit card debt.  This number is often understated in other articles, and the fact is, these findings are current as the study was released as recently as October 2010.  According to the report, a whopping 54 million households fall into the $15,000 of more in credit card debt category with the exact average being $15,788.  

It was found that 51% of Americans carry one or more credit cards with the most popular cards being Visa,  closely followed by Mastercard.  Interestingly enough, both cards beat out American Express which takes the third spot although it was the first to become widely accepted in the 1950s. 

Other interesting findings include that, according to the Bureau of Labor Statistics (2008), the Average American spends 34% of their income on housing costs.  It was also reported that the Average American only saves 6% of their annual income, a finding that could become a problem for many who have lost equity in their home and need to find ways to cover emergency expenses.  This paints a portrait of an American who has or is likely to easily fall into hard to pay down debt- translating into danger for the many Americans in this situation, who due to debt and damaged credit, will need credit repair assistance.    

On average, individuals reported having credit scores below 700, with higher regional averages reported in the New England U.S. region and lower average scores regionally in the South Central region of the U.S.  With bank restrictions continuing to tighten, this suggests millions are in need of the help of a credit repair specialist.  CreditCRM is experienced in helping those with bad credit get back on track.

Revisions in both systems will make adjustments for the lack of consumer credit responsibility that has plagued the mortgage industry and led to soaring mortgage default rates, even by homeowners with good to excellent credit scores. Just like attitudes about bankruptcy, foreclosure is losing its stigma among financially-stressed Americans. The crash of real estate industry and financial markets that precipitated the recession has caused consumers to reprioritize their financial obligations. To the dismay of mortgage lenders and credit reporting agencies, consumers with higher credit scores are choosing to pay down credit card balances and make timely payments on second mortgages or property-secured lines of credit while falling behind in their primary mortgage payments. Yet consumers consider what they term “strategic defaults” to be an acceptable, even laudatory, method of managing their personal finances.

Credit industry analysts began noticing a change in consumer credit behavior in 2006 when an increasing number of borrowers who enjoyed the highest credit scores began to default on their mortgages. Over the next two years, 90-day delinquencies among the borrowing elite increased by more than 400%, doubling a default risk once considered inviolable. The rise in mortgage defaults among a wealthier consumer population has created tremendous opportunity for credit repair businesses.  Prime borrowers who are contemplating strategic default or who have already taken that step generally do not realize the damaging repercussions default inflicts on credit scores — or how that damage can be repaired.  

Credit repair professionals are in an ideal position to help guide financially-troubled consumers to make decisions that will have the least-damaging impact on their credit score. Credit repair experts have the knowledge and resources to develop a plan of action that will help consumers repair and rebuild their credit score.