By Nathan Duke
A recently released staff report by the Council found that the average city household credit card debt is $4,126; that interest rates have gone up from an average annual percentage rate of 12.71 percent last year to 13.77 percent this year; and that seniors, young adults and low-income households are disproportionately affected by credit card debt. The Council examined 387 cards, through the New York State Banking Department's annual Credit Card Survey.City Councilman Eric Gioia (D-Long Island City), chairman of the Oversight and Investigations Committee, said New Yorkers can save thousands of dollars by researching credit card options and choosing the most affordable one.”Not all credit cards are created equal,” he said. “Our investigation reveals that a customer who shops around can save literally thousands of dollars in fees and interest paying off credit card debt.”The Council recommended that residents shop around when picking a credit card, check credit scores periodically, pay more than the minimum amount on their cards and keep the number of cards they carry to a minimum.”Many New Yorkers are bombarded every day with unsolicited credit card applications in their mailboxes,” Gioia said. “If the offer looks too good to be true, it is.”The report also recommended requiring the city to post credit card information on an easy-to-use searchable Web site that allows shoppers to compare credit cards.The report listed Capital One Bank's MasterCard and Wachovia Bank's Visa card as having the lowest annual percentage rates at 5.90 percent and 6.75, respectively. It listed Wells Fargo Bank's Visa card and Chase Bank USA's Visa card as having the highest percentage rates at 18.77 percent and 22.49 percent, respectively.”After we've all spent hard-earned money on holiday gifts for family, friends and loved ones, we shouldn't be giving credit card companies a gift in excessive interest payments and fees,” Gioia said. “I think most people would be surprised to know if they spend $1,000 this holiday season and pay the minimum payment on some credit cards, they would be paying until 2064.”Based on information from The Gallup Organization and the Federal Reserve Board, the Council's report said the average American spent $763 on gifts during the holiday season and that U.S. residents charged a total of $120 billion on credit cards this season. The report also said U.S. households are currently carrying about $800 billion in credit card debt and that new, tougher bankruptcy laws are making it more difficult to recover from financially-crippling events.Reach reporter Nathan Duke by e-mail at news@timesledger.com or by phone at 718-229-0300, Ext. 156.
