50% of Americans Couldn't Come Up with $2000
An article
here says that 50% of Americans could not raise $2000 in the event of an emergency.
That is a scary statistic. I'm sure the economy is partly to blame, but it's also the fact that many (most?) American families did not save while the economy was good.
Define "emergency" and then I'll know if I can come up with it.
I can't.
There were about 10 years in my life when I could have.
But I was bloody miserable for most of them.
Now I would have to throw myself on the mercy of my brother and my Grandad. Which is certainly not the same thing.
I wonder what the % was 5 years, 10 years and 20 years ago.
I wonder if the numbers would be that different.
Define "emergency" and then I'll know if I can come up with it.
The supposition in the article was:
The hypothetical cost "reflects the order of magnitude of the cost of an unanticipated major car repair, a large co-payment on a medical expense, legal expenses, or a home repair."
What is $2000 in plasma?
Blood money? :-)
Here's a graph of savings rates since 1960.
http://research.stlouisfed.org/fred2/series/PSAVERT
Interesting, savings declined on a pretty consistent basis since the early 80's, then in about 2005 it started to increase dramatically.
Here is the chart for those who don't like to click on links.
It's also interesting that savings rate seems to jump up when there's a recession and drop off when things are better.
Maybe recessions are caused by people saving money, instead of spending.
An article here says that 50% of Americans could not raise $2000 in the event of an emergency.
I must assume that means 50% are totally maxed out on every credit card. Credit cards are an emergency fund of last resort. One solution for cash flow problems. Difficult is to believe that 50% of Americans are totally maxed out on all credit cards. That article do not discuss this.
Given my current situation, perhaps it is unusual that I can say that I am part of the "good" 50% of this statistic.
That may or may not be true in the coming months. But as of today, I'm all right.
The supposition in the article was:
The hypothetical cost "reflects the order of magnitude of the cost of an unanticipated major car repair, a large co-payment on a medical expense, legal expenses, or a home repair."
Yeah. Except for the 'legal expenses' the others aren't really emergencies.
If you've gotta pay a co-pay
before they will give you treatment, I'm thinking it's not so much of an 'emergency'.
Cars? I can always borrow.
home repair? What are those? ;)
I cleaned out my car and found $2,000.25 in change down the back seat.
Unfortunately, I spent it all on the quarter car wash.
I cleaned out my car and found $2,000.25 in change down the back seat.
Unfortunately, I spent it all on the quarter car wash.
Why would you get just 1/4 of your car washed? :D
...but it's also the fact that many (most?) American families did not save while the economy was good.
That could very well be "
could not afford to save,
even when the economy was good."
I'm always amused by the number of people who are not aware that everyone is not as well off as
they are. A huge slice of America saves
nothing each week, because they
have nothing to put in the bank. They drive POS cars that need work all the time, because they can't afford a better car. And they bought that POS because they couldn't afford a car in better mechanical shape. They can't fix everything on the car because they have to feed themselves, their kids, their family, pay the electric bill, pay rent because they can't afford to buy.
And why must it be assumed that these people's credit cards are "all maxed out"? The people you are talking about do not
have credit cards, because they can't afford the minimum monthly payments.
That's right, some of these people don't have $20 left at the end of the month to pay on a credit card balance.
How are legal expenses an emergency?
Now, as you were.
:blunt:
What is $2000 in plasma?
or in kidney?
Why would you get just 1/4 of your car washed? :D
It's all I could afford.
That could very well be "could not afford to save, even when the economy was good."
I'm always amused by the number of people who are not aware that everyone is not as well off as they are. A huge slice of America saves nothing each week, because they have nothing to put in the bank. They drive POS cars that need work all the time, because they can't afford a better car. And they bought that POS because they couldn't afford a car in better mechanical shape. They can't fix everything on the car because they have to feed themselves, their kids, their family, pay the electric bill, pay rent because they can't afford to buy.
And why must it be assumed that these people's credit cards are "all maxed out"? The people you are talking about do not have credit cards, because they can't afford the minimum monthly payments. That's right, some of these people don't have $20 left at the end of the month to pay on a credit card balance.
...
I'm trying to figure out if this is a judgement or just a statement of fact.
My late FIL used to call it "the high cost of poverty"
Well said Digr. I lived that life for about a decade. I couldn't take it anymore and changed my ways and my life. Even while living paychecks to paychecks (3 jobs) I still was borrowing to make ends meet and to feed my family. I bartered anything and everything I could. Its not living.
My late FIL used to call it "the high cost of poverty"
That's an excellent description.
Right now I could raise it. But that's only because Dad left some money. Before he died, the only way I could have raised it would have been by borrowing off him.
There have been times in my life where I've had decent cash coming in, but never a sustained period. I have generally spent far more time living on the margins of the economy where, frankly, saving was not an option. Living cheap, is a much less cost effective way to live, you get less for your money.
I'd like to see the savings rate plotted with the interest rate in the average savings account. I'm a saver but saving money is a losing proposition.
And why must it be assumed that these people's credit cards are "all maxed out"? The people you are talking about do not have credit cards, because they can't afford the minimum monthly payments.
First, one has a credit card, does not use it, and therefore has no monthly payments. Or one only uses a credit card for amounts that can pay off that month. Either way, the credit card is that emergency $2000.
The argument is valid, but subjective. Do you describe most of the 50%? Or well less than 1%? A problem with all these assumptions is one glaring problem. No hard numbers.
I don't believe most of the 'on the edge' cannot have any credit cards. A credit card that you have and do not use can cost nothing. I would suspect a significant number of that 'on edge' 50% has foolishly used credit cards. It would explain why they enrich the richest with their 20+% interest charges on outstanding balances. And therefore cannot afford any savings.
But again, that is only suspicion based in a lack of any hard numbers. We really do not know why that 50% is close to which edge. And, unfortunately, the article does not even define 'edge'. Does not even define how many Americans have credit cards.
The article implies an American public that is living on large cash flows and few real assets. It is how AIG, GM, Lehman Bros and so many other financially irresponsible companies also lived. It only implies this is worse than ever before. But provides no numbers to make that conclusion. It only suggests a serious problem that has been deteriorating.
Meanwhile, saving numbers in the chart strongly suggest American financial stability has seriously deteriorated.
Do you believe more than 50% of this nation cannot have any credit card? I suspect that is not true. Anybody can afford a credit card by not using it. Then an emergency $2000 fund exists.
First, one has a credit card, does not use it, and therefore has no monthly payments. [COLOR="Red"]FALSE
[/COLOR]
The argument is valid, but subjective.
I don't believe most of the 'on the edge' cannot have any credit cards.
A credit card that you have and do not use can cost nothing. [COLOR="Red"]FALSE
[/COLOR]
Anybody can afford a credit card by not using it. [COLOR="Red"]FALSE
[/COLOR]
Many companies are canceling credit cards if they are not used and/or the credit rating of the consumer does not meet their standards.
Google is your friend and this has been happening for at least 4 years. Its the "If you don't use it, you lose it" plan
Unrelated statistic - "37% of families are still paying off a credit card they cancelled. "
That statistic doesn't surprise me, even if it's not completely proven. I don't know too many people who could come up with 2k without blinking an eye. I know we'd have trouble doing it right now although we'd manage.
I have to say that over the last couple of years, the cost of living here has gone up so much it's just impossible to find the right words to describe it. We're on an above average household income, and yet we're finding we can't save at all anymore, so we're in the midst of making some major changes to how we live. One of those is sacrificing the quality of the food we eat. When you're paying $10/kg for bell peppers, and $6/kg for carrots it's becoming impossible to eat healthy as in, to afford to buy enough fruit and veges to allow everyone their recommended daily intake, which is a guide and the teenagers in our house would eat more than that at the moment. That's not even including buying things like milk and bread and some kind of protien. Fortunately for us, we suppliment that by fishing, but it's still out of control.
I know this isn't america, but it's still a western country.
Why Creditors Close Inactive Accounts
Closing your unused credit card gives the card issuer the ability to extend that credit limit to someone who's going to use it. In other words, that's someone who's going to make charges and incur interest. It's simply a business decision all lenders have to make at some point.
some links
here ...
Many companies are canceling credit cards if they are not used and/or the credit rating of the consumer does not meet their standards.
Google is your friend and this has been happening for at least 4 years. Its the "If you don't use it, you lose it" plan
Unrelated statistic - "37% of families are still paying off a credit card they cancelled. "
I wouldnt say many are cancelling cards.
I would say it is primarily Capitol One, which also wont accept new customers with high credit ratings and a history of paying off charges monthly and not having any interest or penalty payments.
How are legal expenses an emergency?
If I'm in jail, it's an emergency.
P.s. Capitol One is teh debbil.
Originally Posted by tw
First, one has a credit card, does not use it, and therefore has no monthly payments. [COLOR="Red"]FALSE[/COLOR]
The argument is valid, but subjective.
I don't believe most of the 'on the edge' cannot have any credit cards.
A credit card that you have and do not use can cost nothing. [COLOR="Red"]FALSE[/COLOR]
Anybody can afford a credit card by not using it. [COLOR="Red"]FALSE[/COLOR]
Many companies are canceling credit cards if they are not used and/or the credit rating of the consumer does not meet their standards.
I don't think either of your arguments is absolute. tw is right that those things can happen, and you're right that it's getting less likely to happen. To categorize his assertions as [COLOR="Red"]FALSE[/COLOR] is Intellectually dishonest, IMHO.
For probably the first time in my life, I could scrape together $2k right now. I would not have to use credit or sell anything or pay a bill late to do so.
I've spent the last decade (since a nasty divorce and subsequently losing my job) getting square again, financially. I work two jobs, make decent money, RENT a nice house and have no credit card debt. My only debt obligation is 1 car payment. It will be paid off in 2 years and I do not plan to ever finance a vehicle again.
My goal over the next 5 years is to re-establish my credit with carefully controlled credit card spending and save $25k for a down payment on a condo which I intend to finance for 15yrs. At the same time, I will be heavily saving and investing. Once the condo is paid off, I plan to retire.
But for 40 years, I was paycheck to paycheck and always teetering on the edge of financial ruin. Ok sometimes I was deep in the pit of ruin, but I survived somehow. Now I have to find a way to enjoy my retirement years.
Part of doing so involves getting healthy, because who the hell can afford major medical costs or wants to spend their retirement as an invalid? So I quit smoking, am losing weight, began eating organic and non-processed, and recently started running and lifting weights. I don't think I've ever been healthier.
Stormie
I don't think either of your arguments is absolute. tw is right that those things can happen, and you're right that it's getting less likely to happen.
It is a fact that card companies are canceling dormant or unused cards. They are not making any money on the card if it isn't used. They will extend that credit to someone else who will use it - that is how they make money. They can only extend so much credit and to have it "wasted" on someone who is not using it is not a fiscally sound business plan.
I too was unaware of this until about 2 years ago when a card I kept just for emergencies was canceled without notice. :mad:
To categorize his assertions as [COLOR="Red"]FALSE[/COLOR] is Intellectually dishonest, IMHO.
Spreading misleading information and blatant falsehoods is intellectually dishonest. Your ire is also misdirected.
It is a fact that card companies are canceling dormant or unused cards. They are not making any money on the card if it isn't used. They will extend that credit to someone else who will use it - that is how they make money. They can only extend so much credit and to have it "wasted" on someone who is not using it is not a fiscally sound business plan....
...Spreading misleading information and blatant falsehoods is intellectually dishonest. Your ire is also misdirected.
The big three - Chase, Citi, BOA (who along with Amex represent more than half of all card isusers) - dont cancel dormant cards. Their policy is to provide a notice of pending cancellation unless the customers requests the card to remain active.
It is primarily Capitol One and a few small bank insurers that have a cancellation cause with no recourse.
So I would suggest that your statement is spreading misleading information to some degree.
My card was a Chase card and was canceled.
Again, I am speaking from personal experience. There is nothing misleading about facts, whether you like them or not.
My card was a Chase card and was canceled.
Again, I am speaking from personal experience. There is nothing misleading about facts, whether you like them or not.
Perhaps you just ignored the notice or had credit issues. I dont know the circumstances, I do know the policy. It is a risk management policy and a standard practice among the big three. Even more so since the passage of the CARD Act in 09 (no, the act does not address dormant cards, but it does reaffirm the overall risk management practices).
First, one has a credit card, does not use it, and therefore has no monthly payments. [COLOR="Red"]FALSE[/COLOR]
The argument is valid, but subjective.
I don't believe most of the 'on the edge' cannot have any credit cards.
A credit card that you have and do not use can cost nothing. [COLOR="Red"]FALSE[/COLOR]
Anybody can afford a credit card by not using it. [COLOR="Red"]FALSE[/COLOR]
None of the statements are [COLOR="Red"]FALSE[/COLOR] on their own merit.
J works in the HQ of the card department at one of the banks mentioned, *specifically* in matters like these, and will settle this immediately when she gets home.
oh snap!
you just wait til momma gets home.
J works in the HQ of the card department at one of the banks mentioned, *specifically* in matters like these, and will settle this immediately when she gets home.
Battle of the banker babes?
My info is from my sis, who works at a pretty high level in the consumer/community affairs dept of one of the big three.
This'll be good.
:corn:
It's like someone telling me how financial aid works and what the regs are because something happened one time to them or to their friend's dog and that is how it works because that is how it works.
GO J! :)
disclaimer: I ain't on any side...I have no clue about any of it. ;)
I predict that the answer will be somewhere in the middle: they can do it, but don't always do it.
sez Carnac the Magnificent. ;)
Well, in my experience, I have cards I don't use, and I don't pay squat for them. So right there, the "FALSE" claim is wrong. I haven't been contacted by anyone that they are going to cancel my cards.
I don't carry a balance on the card I do use. I imagine the card companies don't like me much, but they do make a little bit off of each transaction through merchant fees. Certainly enough to cover postage on the bill.
We had a few dormant cards close in the last 2 years, but prior to that never. I assumed it had to do with the financial chaos. Other than that, for us...
First, one has a credit card, does not use it, and therefore has no monthly payments. [COLOR="Red"]TRUE[/COLOR]
A credit card that you have and do not use can cost nothing. [COLOR="Red"]TRUE[/COLOR]
Anybody can afford a credit card by not using it. [COLOR="Red"]TRUE[/COLOR]
This'll be good.
:corn:
It's like someone telling me how financial aid works and what the regs are because something happened one time to them or to their friend's dog and that is how it works because that is how it works.
GO J! :)
disclaimer: I ain't on any side...I have no clue about any of it. ;)
The initial charge of [COLOR="Red"]FALSE[/COLOR] was not based on what happened to him or them or his friends, but the old
"Google is your friend" defense.
Pet peeve - Google is not your friend. It is a tool and only as friendly as your interest in using it wisely and thoroughly, not superficially and selectively.
disclaimer: I ain't on any side...I have no clue about any of it. ;)
In other words: I ain't on any side. I have no clue about any of it.
(you don't need to explain sketchy cellar debating techniques to me.)
This'll be good.
:corn:
or to their friend's dog...
I'm holding the "my friend's dog ate the evidence" in reserve. ;)
I shared what my personal experience was. I also stated facts and corrected some bad information. It is very easy to support that it can and has happened. Info is available all over the internet about the fact that they cancel them and some info about why. Take for what it is.
I never said all the time, every case, always... just that they can and do cancel dormant cards.
I have a credit card that I never use, and they haven't canceled it yet. Just because some companies do it doesn't mean that tw's statements are false.
Especially if you look at the wording:
First, one has a credit card, does not use it, and therefore has no monthly payments.
That's me.
A credit card that you have and do not use can cost nothing.
Note the
can. Also me.
Anybody can afford a credit card by not using it.
Note the afford. I've got a card that I don't use, and costs me nothing, so obviously anyone could afford that (unless they're shopaholics who can't afford to have a credit card available or they'll max it out). You could read more between the lines of tw's post, and argue that it would be hard for some people to get the card in the first place, but that's not a direct contradiction of anything tw said.
As long as there are still cards that aren't canceled through inactivity, tw's statements are true.
I never said all the time, every case, always...
Yes you did. That's what your "False" means when tw says it can happen. You were saying it can't.
It turns out everyone is on the same page now, and the arguing was for nothing. You are agreeing now with tw that it can happen.
Even if, in the future, there are no cards left that can be held dormant, you can use them for many purchases you would otherwise pay cash for, and not carry a balance, and still have it cost nothing more than stamps.
Maybe some day you won't be able to get a card unless you promise to carry a balance or pay a monthly fee, but it's not here yet.
Maybe some day you won't be able to get a card unless you promise to carry a balance or pay a monthly fee, but it's not here yet.
When that happens, I'll go back to writing checks or paying cash.
If anyone wants to borrow part of my balance (you know, just so you keep your card...really, I'm thinking of YOU) I will help you out.
PM ME!
Still, though: Capital One is teh debbil.
I stand corrected...
My humblest apologies.
On behalf of everyone, I accept your apology.:)
Meanwhile, Stormieweather described a process that everyone should aspire. A process of moving from debtor to creditor means maintaining a cash flow without 9% and 20+% interest rates.
I've spent the last decade (since a nasty divorce and subsequently losing my job) getting square again, financially. I work two jobs, make decent money, RENT a nice house and have no credit card debt. My only debt obligation is 1 car payment. It will be paid off in 2 years and I do not plan to ever finance a vehicle again.
Why would 50% not be able to pay $2000 today? Does that mean 50% are even maxxed out on credit cards? That article does not say - is too subjective.
I believe most can get $2000 at any time. Even a loan shark is an alternative. The article is probably ignoring loan sharks, the 'get money today for your future tax refund' outlets, and other emergency money outlets. But again, we cannot say for sure. The article does not define 'the edge'. Does it even ignore a loan shark option?
More important. Do 50% have no grasp of financial responsibility demonstrated by Stormieweather? The article implies that. I find it difficult to believe 50% are that financially ignorant.
Stormieweather defines what every financially responsible adult aspires. To move from debtor to creditor. Anyone working towards that goal could easily obtain $2000. But resulting fees, penalties, and interest charges would be a setback to the lifelong task of 'moving from debtor to creditor'.
50% of Americans could not even get money from a loan shark? I find that difficult to believe. But again, hard numbers remain unknown. Still it is curious (or distressing) that so many still have so little. Or have been so manipulated by advertising as to make Capital One so profitable.
50% of Americans could not even get money from a loan shark? I find that difficult to believe. But again, hard numbers remain unknown. Still it is curious (or distressing) that so many still have so little. Or have been so manipulated by advertising as to make Capital One so profitable.
I think loan sharks were probably not counted, alongside money-making schemes like selling a kidney, whoring kidnapping or becoming a drug mule for the money.
Of course I may be wrong, just guessing.
Many have been taken care of via government programs as well. They have never learned to be self sufficient. They've never had to be. Its frightening the number of [people who have no clue about any of it. And their numbers are increasing dramatically. There is an entire subculture of those who have always existed on an income derived from someone else. They have never been independent. ]
Is it 50%? I wouldn't have thought so, but perhaps it is. The questions were probably left open-ended intentionally so as NOT to provide hard facts. That way the politicos can use the "info" and interpret it for their own benefit.
I'd liek to know the amount of people polled to start with.
If that's already been addressed here I apologise.
And the area.
Maybe we should do an anonymous Cellar poll, but include restrictions such as "not including money borrowed from family, loan sharks or earned short term by illegal activity."
I'll bet over 50% would be able to.
Then again the dolescum on her have been mostly British.
And mostly me.
Maybe we should do an anonymous Cellar poll, but include restrictions such as "not including money borrowed from family, loan sharks or earned short term by illegal activity."
I'll bet over 50% would be able to.
I agree, but I don't think this community reflects general society. For one, we can all afford a computer and internet connection.
How do you find a loan shark? Are they in the yellow pages? I guess I don't hang around the right type of people to know.
glatt: hangs with dolphins.
*snort*
Around here, we refer to payday loan folks as loan sharks. I know few who've never had to use it.
But it's capped based on your income. It just puts you in a hole if you use it for, say MEDICAL EMERGENCIES [COLOR="White"]like no teeth don't tell me having no teeth isn't an emergency unless you're unemployed or work with dead animals[/COLOR]and you get behinder and behinder. They just don't nail your knees to the floor.
If anyone wants to borrow part of my balance (you know, just so you keep your card...really, I'm thinking of YOU) I will help you out.
PM ME!
Hmmm, maybe I can go into the loan shark business. I could lend you use of one of my credit cards for a
fee....:evil2:
'Cept, how to go about enforcing payment.
eeeeek.
I'm so scared of Giant Smilie Head I'd probably poo out the money.
:eek:
(Yeah, thing was, I had helped out a friend with her husband's teeth because they had no money or insurance...they make the payments, but it's in my name. OTHERWISE, I could have done all the teeth fixing I wasn't expecting to happen without having to do what I did. Stupid, probably...but trying to help gets me in all kinds of trouble. I should stay out of the helping business.) :)
Hey, just a general note: (ding ding ding) that's why I hate these kinds of finger-wagging statistical statements of how dumb some of us are: there are an awful lot of situations that can't be controlled or situations where we were busy trying to help someone else...something all the stats in the world doesn't take into account: the human aspect.)
We have property and livestock. We live like the "Amish" mostly but we almost own our farm outright. All assets not much cash. I have a ton of credit at Sears ;)
I agree, but I don't think this community reflects general society. For one, we can all afford a computer and internet connection.
That was my point.
I'm not saying the poll was deliberately skewed, but without knowing the numbers polled and the how and where, such a dramatic figure does not necessarily reflect the average.
It could only be 100 people in a small area.
Or 250 people using a public library.
Or 1000 people on a certain calling list.
Right. Like "4 out of 5 dentists surveyed" like CWEST!
Maybe they surveyed 5 dentists: Dr Charlie West, Dr Cary West, Dr Charlene West, Dr Chaz West, and Dr Conway West.
eeeeek.
I'm so scared of Giant Smilie Head I'd probably poo out the money.
:eek:
--snip
Is this you (gender changed to protect the gastronimically solvent)?
[youtube]iHkVtM6yHUs[/youtube]
Many have been taken care of via government programs as well. They have never learned to be self sufficient. They've never had to be. Its frightening the number of [people who have no clue about any of it. And their numbers are increasing dramatically. There is an entire subculture of those who have always existed on an income derived from someone else. They have never been independent. ]
Is it 50%? I wouldn't have thought so, but perhaps it is. The questions were probably left open-ended intentionally so as NOT to provide hard facts. That way the politicos can use the "info" and interpret it for their own benefit.
Whoa.
I'm not sure what you mean here, but it sounds like you are suggesting that there are millions of "welfare queens" or similar types who live off of government handouts for life and the number is growing, when in fact, most individuals and families receiving some form of social assistance (TANF, SNAP, etc) are relatively short term and the number was declining over the last 10-15 years (since welfare reform) until the recession.
On the issue of numbers maxed out on credit cards, those with the lowest income, up to $25K, have a higher rate of always paying off the balance than those making between $25-100K.
http://www.census.gov/compendia/statab/2011/tables/11s1190.pdf
I hope I am wrong about the first comments (never learned to be self-sufficient...an entire subculture...always existed on an income derived from someone else) and it was just my misunderstanding of your position.
I would suggest that probably most Americans never learn good financial management practices in a formal manner. IMO, it should be part of a high school curriculum.
Maybe some day you won't be able to get a card unless you promise to carry a balance or pay a monthly fee, but it's not here yet.
Nah, they'll just charge merchants more and more to be allowed to run transactions. You know those "rewards" cards everyone has? I learned awhile ago that the
merchant is the one paying that extra reimbursement back to you, not the credit card company. It's something they have to put up with if they want to allow their customers the convenience of using credit cards.
The kids' preschool tacks on a 2% surcharge for anyone using a credit card instead of a check, plus an additional 3% if it is a rewards card.
An article here says that 50% of Americans could not raise $2000 in the event of an emergency.
That is a scary statistic. I'm sure the economy is partly to blame, but it's also the fact that many (most?) American families did not save while the economy was good.
As I understand your economy, if 50% of your citizens saved money, your economy would collapse.
As I understand your economy, if 50% of your citizens saved money, your economy would collapse.
Good call Uday.
J: "Of course. Not just my bank, but all credit card companies cancel cards that are not used. It's called Inactive Termination."
(J manages customer communication at one of the major banks mentioned, including rate changes, balance transfers, and yes, inactive termination.)
J followon: "The risk departments actively try to cancel accounts that are not used, because some people forget they have the cards and then when they are stolen they are a bigger problem. We market to people trying to get them to use their cards. Use of a card without running a balance still means the card is active. They could probably use the card once a year and not be terminated."
J: Is period of non-use the only factor you consider when cancelling cards?
"There are many reasons to cancel... lack of payment obviously... I'm not in the risk department, but they have many reasons to cancel there, such as people who are using the card for fraud, or what they call 'gaming the system' in various ways."
I guess i meant to say "when cancelling dormant cards"...?
Ah, she's gone upstairs and so this method of communication has become a hassle :D . I don't know if she knows that, because she handles the communication, the various letters and whatnot that get sent, not the decision on when to cancel.
sry, don't bother. but we also have many dormant cards that have not been cancelled, was just wondering what made us super-awesome-special.
could be any number of reasons - define "dormant" - last used more than 12 months ago? 0 balance?
Maybe your dormant cards have the same parent bank as some of your active cards. Maybe you have other valuable relationships with the bank(s) that own your dormant cards (mortgage or other loans, checking, savings etc)
Maybe you have linked your CC with other bank accounts as part of overdraft protection (again multi-relationships make you more valuable)
Also - don't underestimate any banks ability to see and evaluate your spending habits - even using other products. If you have strong credit and use it (even selectively) you are like raw meat to a starving wolverine.
Thanks J. Input much appreciated.