U.S. credit card defaults rise to record high in May

[sarcasmo]

Source: Reuters

Snip< U.S. credit card defaults rose to record highs in May, with a steep deterioration of Bank of America Corp's (BAC.N) lending portfolio, in another sign that consumers remain under severe stress.

Delinquency rates -- an indicator of future credit losses -- fell across the industry, but analysts said the decline was due to a seasonal trend, as consumers used tax refunds to pay back debts, and they expect delinquencies to go up again in coming months.


Snip< The bank is paying the price of expanding rapidly in recent years and of holding one of the highest concentrations of subprime borrowers among the top card issuers, analysts said.

Read more: http://news.yahoo.com/s/nm/20090615/bs_nm/us_creditcards

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Hard to feel sorry for "the bank paying the price".

[OhioChick]

1. Consumers will remain under "severe stress" until they have JOBS. n/t

[MannyGoldstein]

2. Don't Worry - The Administration Will Bail Them Out

Seems puzzling... they jacked up their rates, then people can't pay.

No worries, though, it's not like they're unionized like GM, so they'll be bailed out. And the bankers will deserve the jaw-dropping bonuses that they'll take from the bailout cash, it's been s-o-o-o-o traumatic for them.

Just more IOUs for Summers to cash in after he leaves office.

[earcandle]

3. one of my cards increased by 7K without any purchases on my part... just interest and penalties...

since november.  they are having a feast of our famine, but
they will not be paid.  

[MannyGoldstein]

4. It Sucks For Everyone, And It's Stupid

But Battlin' Barack and the Fightin' Congressional Dems will only use it as an excuse to put more cash at risk with the banks.

Sorry to hear about your issues with the bank - good luck!

[sarcasmo]

5. They just increased the balance by 7grand is that what happened?

[earcandle]

6. just interest and penalties...