Late credit card payments down across nation

Local counselors, investors see more interest in reducing debt

More people are paying their credit card bills on time across the country, and the increased interest in reducing debt seems to be holding true in Grant County.

Moody's Investors Service recently reported that the monthly rate at which the nation's credit card holders repaid their debt reached a record high in June, while the delinquency rate fell to its lowest rate in four years.

Area credit counselors and investing agencies may not be seeing the statistics, but are seeing more interest in debt reduction.

"We are starting to see an increase in clients," reported Geoff Baker, regional executive director for Consumer Credit Counseling Services, which has an office in Moses Lake.

As an investment representative, Michael L. Slate, owner of the Securities America, Inc. branch in Moses Lake, said that he too has noticed people concerned about paying off their debt, and said that more people are giving him a call.

"My personal take is that the average American is carrying $6,000 to $8,000 in credit card debt and they're tired of it," Slate said. "They're looking for ways and means to be able eliminate it."

Baker said he thought that the increased interest was because of economic improvement in some parts of the region that allow people to address their debt.

But Baker cautioned against people calling up a debt counseling agency where the only interest is getting the caller into a debt repayment plan.

"That agency is probably not acting in your best interest," he said. "A true nonprofit like us will provide a confidential meeting with a counselor to see if you can handle it on your own, and a lot of people can."

Baker said that people are getting more discretionary money and choosing to repay their debt. He noted that most people want to pay their debts, but don't know how.

CCCS counselors help consumers construct a budget in order to make payments on time, because many creditors charge late fees and over-limit fees, which intensifies debt quickly, Baker said.

"The best thing is to simply not charge unless you absolutely have to," he said. "That's the best hint we can give."

Baker said that the CCCS also works closely with such organizations as the Moses Lake Chamber of Commerce and Moses Lake Business Association because the agency's ties are as much to local businesses as it is with national credit card.

"We treat all debts, not just partial debt or credit card debt," he said.

Slate said that his advice was also to quit charging.

"It's difficult because it's a change of lifestyle thing," he said.

Slate also recommended that debtors make a list of all of their debts, make a minimum payment on the largest debts and, on the smallest debt, try to multiply the minimum payment by four.

"Now when the smallest debt is paid, apply that amount along with the minimum on the next bigger debt," Slate said.

When that debt is paid off, do the same to the next, he advised.

"By snowballing that effect, you're keeping payments exactly the same, but paying off credit cards," Slate said. "It may take two or three years to get paid off, but what a wonderful feeling."