Credit card defaults headed to 20-year low


Credit card defaults are headed to a 20-year low, according to new analysis from Moody’s.

We have changed how we handle credit. People are paying their bills in much larger numbers and that has really made a big difference. I don’t know if you’ve noticed, but if your score is good, the banks are carpet bombing your mailbox with the pre-approved applications. (I hope that doesn’t start a new credit crisis!)

Your personal balance sheet may be significantly healthier than it was. Think about this, it’s not like the economy has truly recovered. We still have high unemployment and high underemployment, so there’s no robust recovery to speak of. But how we handle own financial houses has improved so much.

My challenge to you is to keep this momentum going. If you can teach yourself the habit of only buying on credit what you can afford, it changes things for you. I think about the anxiety people feel when debt is snowballing out of control. I want you to have a sense of control.

If you know yourself and that you find it hard to exert control, don’t carry the plastic on you.

On the other hand, if you have your charging under control, you can get great benefit from reward cards. I like for you to find the best reward cards for your charging patterns at  

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