U.S. Credit Card Debt Soars to Unprecedented Heights

[Purveyor]

Source: Epoch Times

WASHINGTON—Studies indicate that credit card defaults and related write-offs increased drastically since 2006. Today, lenders write off 33 percent more in credit card debt than they did two years ago.

Statistics show that about 35 percent of all credit card holders are already exhibiting signs of possible default. Late credit card payments result in fees many consumers can't afford.

Credit card debt accelerated to unprecedented heights since bank loans began to dry up due to mortgage defaults. Total U.S. credit card debt reached almost $800 billion in November 2007, up from around $680 billion in March of last year, according to the latest available government statistics.

In the aftermath of the U.S. mortgage crisis, the credit card bubble may be next to burst. In the past few years, banks have aggressively marketed credit card ownership and usage to consumers with limited income and low credit scores. Credit card standards remain lax, while loan standards have tightened to a degree.

--
The Next Credit Crisis?

"Rising credit card debt since April 2006 amid the decrease in the mortgage expansion rate resulted in a substantial shift to credit card borrowing from mortgage debt," according to a recent report titled "House of Cards: Consumers Turn to Credit Cards Amid the Mortgage Crisis, Delaying Inevitable Defaults." The report was published by the Center for American Progress (CAP), a nonpartisan Washington, D.C.-based research institute.


Read more: http://en.epochtimes.com/news/8-4-28/69849.html

[OhioChick]

1. Only to Worsen. n/t

[Horse with no Name]

2. Thanks Congress!

The gift that keeps on giving.
I had to drag one out of the drawer the other day to do something I never do...put gas in my car.
It hurt to do that.:(

[Crowman1979]

3. If someone says we aren't in a recesssion, then they need a serious beating.

The government doesn't give a shit about the consumer. Yet big business' get bailouts o' plenty.:mad:

[TalkingDog]

6. Ditto, if someone says we aren't headed for a depression.

Welcome to DU

[corkhead]

7. I could report you to the SS for that remark

:evilgrin:

[Caretha]

4. 35% !!!

Omg....we're in deep shit folks. Think "Snowball Effect".

[Doctor_J]

5. That's because Congress won't pass all of the MBA Resident's great laws

after all things were going great when we had a GOP congress :sarcasm:

[Thor_MN]

11. And in the fall we get to hear about McSame

All the fuckups and none of the business education you expect in a rethuglican.

[Zachstar]

8. High Fuel Price High Food Price corperate bailouts!

If we are not rocketing towards depression then we are extremely lucky.

Recession? That was months ago. Before it cost 100USD to fill a gas tank.

[Raster]

9. Good thing cheney*/bush* allowed the credit card companies to rewrite the consumer laws....

so that they can now charge up to 30% interest on credit cards. Oh, and don't forget the good payday loan folks. They get to charge 200%, 300%, even up to 400%. So this is what this country has become: legalized bribery in Congress and legalized loansharking on Main Street. Wake up America!

[bluesmail]

12. and legislation tailor made to let the corporations file for

bankruptcy but the average american is forbidden.

[Trillo]

13. Can you guess where many Stimulus Checks are going? n/t

[Purveyor]

17. There are way to many Democratic votes that supported laws such as the Bankruptcy Reform Act

within the past few years including my own state senator Stabenow.

It is way beyond time to 'call them' on it and demand a correction to their vote now that we have the majority in Congress.

I won't hold my breath...

[Ferry Fey]

18. They get to raise rates in lockstep, too

Remember, that if someone with a high credit card debt is tardy in making a payment, not only can their rates be raised, but other credit card lenders can raise the rates they are charging to match!

This collusion is one of the most sinister aspects.

[oberliner]

10. It's amazing how many of those credit card offers come in the mail

Definitely a disaster waiting to happen.

[nichomachus]

14. Just a little perspective

$800 billion in debt equals $3,700 in credit card debt for every adult in the US. And, since I don't have any, someone else has a little more. I know a lot of other people who don't have any either.

If you were to spend $1 million a day, it would take you 2,247 years to spend $800 billion.

[Uben]

15. I use a few.....

....but they are all paid off monthly......always, no exceptions!

[Yavin4]

16. Shhh Rev. Wright Is Scaring White Folks Again

Come on where are your priorities?