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New Credit Card defaults rising
[link|http://www.marketwatch.com/news/story/credit-card-defaults-rising-us/story.aspx?guid=%7BC4FE2D82%2D06FD%2D400A%2DA524%2D4D2A76FE3ECB%7D|Market Watch]
U.S. consumers are defaulting on credit-card payments at a significantly higher rate than last year, according to a Financial Times report citing Moody's data. Credit-card companies were forced to write off 4.58% of payments as uncollectable in the first half of 2007, almost 30% higher year-on-year, the report said. But Moody's said the rate of losses remained well below the 6.29% average seen in 2004, a year before the US enacted a new law that made filing for personal bankruptcy more onerous, the report said.

Not a good sign and probably partially related to the credit crunch and housing slump. People expecting to take out home equity loans are finding they can't.

And on another level, I find the figures they give for not paying to be quite scary. If they are really not getting that much of their money, wouldn't it make sense to stop issuing cards to every deadbeat that asks for one?

Jay
New Who has to ask? Cards are given out as readily as BB cards.
A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort. (Herm Albright)
New Raising the question about *their* 'financial instruments' -
are the obfuscations as dense as in the mortgage package 'instruments'?
as skillfully diffused to escape any responsibility?

Does any one know (yet?)
Successful Corruption breeds more and more and..

New Probably not
Raising the question about *their* 'financial instruments' -
are the obfuscations as dense as in the mortgage package 'instruments'?
as skillfully diffused to escape any responsibility?

Because you can't know how long credit card debt will last, or how much the debt will bring in interest, it would be very hard to turn into some sort of structured cash flow the way mortgage debt is/was. I'm sure the credit card companies have looked at it, but I have not heard of anybody trying it yet.

The real danger here is that rising rates of default mean that people are tapped out on debt. Which will result in consumer spending going down, just when economists are hoping the consumer spending will keep the economy going.

Jay
New no, they will just instruct congress to ressurect debtor
prisons and lease the inmates out to fast food joints. They're covered.
thanx,
bill
Quantum materiae materietur marmota monax si marmota monax materiam possit materiari?
Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free american and do not reflect the opinions of any person or company that I have had professional relations with in the past 51 years. meep

reach me at [link|mailto:bill.oxley@cox.net|mailto:bill.oxley@cox.net]
     Credit Card defaults rising - (JayMehaffey) - (4)
         Who has to ask? Cards are given out as readily as BB cards. -NT - (jbrabeck)
         Raising the question about *their* 'financial instruments' - - (Ashton) - (2)
             Probably not - (JayMehaffey)
             no, they will just instruct congress to ressurect debtor - (boxley)

About Three Miles long and right up the wazoo.
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