Credit Debt help turns to emergency 911 trauma care today, amidst economic meltdown. For millions, it’s survival mode. Forget the averages reported. If you’re laid off, you’re desperate!
Millions of people once boasting “good” credit scores now are besieged by “bad” credit, late payments, collections, charge-offs & no savings or 401k.
For Jamie Wickins of Orlando, Florida, life took a sudden, sharp turn south in ’09.
“Once upon a time, I had a secure job making a good living,” Jamie recalls. “My wife didn’t have to work and my kids enjoyed enrichment programs I’d never had growing up.”
“We weren’t living high on the hog, so to speak, but we never worried about money.”
In June 2009, Jamie’s feet were cut out from under him when he lost his job. That “rainy day” savings fund disappeared…really fast.
Jamie watched his credit scores drop as his credit usage, late-pays and debt increased. Jamie and family turned to survival mode, finally giving in to illusion of returning to their previous standard of living.
“It’s all about surviving as a family,” Jamie says. “For how long, I have no idea,” he adds. Look below at these charts that I argue are grossly INACCURATE!
Not for one minute do I believe the average credit score TODAY is 693. Yesterday, yes. Today, no! Keep scrolling to see more inaccurate data collection:
No way do I believe the average CREDIT UTILIZATION is 34.7%. Two reasons: 1) People are living off their cards today. 2) Many people who responsibly use their cards and are not forced to live off their cards are watching in horror as their credit limit gets slashed in 1/2 or more.
Slashing a person’s credit limit by 50-60% (or more) NEGATIVELY will impact credit utilization. for instance, you have a $2,000 balance on a $10,000 card. You’re good, you think. You’re using (only) 20% utilization.
Oops, big, bad credit card bank slashes your card credit from $10,000 to $5,000, seriously INCREASING your utilization from 20% to 40%. This is a mild example.
I’m getting reports daily from people screaming about a $10,000 credit limit plummeting to $2,000 limit. Yikes, that’s bad…for more than just credit scores.
Credit cards and car or furniture loans for instance: $16,695. It’s higher. You know it. I know it.
At least in Florida, 1 in 8 is behind on a mortgage (house payment). Whether it’s one or many lates, a late is bad. On a 30-day mortgage late, the credit hit is up to 120 points. Even (if) the average credit score is 693, subtract 120 points from 693 and you have a B-A-D credit score.
Credit debt decisions point toward necessities such as rent, food, utilities, car payments & gas. Entertainment is cable TV if possible. When you talk with family and friends, are you seeing fear and a change in their buying decisions? Are your friends and family “concerned” about their “near-term” financial future? Scroll down & leave a comment. Be the first to tell what your family is doing differently to “weather this storm.” If your family is not affected, tell us about it. Of course, I HOPE not every person or family is feeling the crunch. You will give others hope.
Welcome back! Got a question for me...or an experience to share? Please go to the bottom of this article to ask a question or share an experience. :) Thank you!
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