Credit-card delinquencies are likely to become the next flashpoint in the credit crisis, though the impact on the overall economy won't be as severe as the housing slump, analysts believe.
As the economy worsens and unemployment rises, more Americans are having trouble paying off their credit card balances. That has pushed up losses for credit card issuers, forcing them to tighten standards, which puts a further squeeze on cash-strapped consumers.
“After mortgages and home equity, credit cards are the next in line to feel the crunch,” says Marc DeCastro, an industry analyst with Financial Insights.
As the economy worsens and unemployment rises, more Americans are having trouble paying off their credit card balances. That has pushed up losses for credit card issuers, forcing them to tighten standards, which puts a further squeeze on cash-strapped consumers.
“After mortgages and home equity, credit cards are the next in line to feel the crunch,” says Marc DeCastro, an industry analyst with Financial Insights.
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- tags:
- Economy, 2008, Credit Crisis, Bank bailout, 1 more + add
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- Apocalipstick
- added this
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As they should.
Their high interest rates and retarded need for fees.....this serves them right.
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I don't think that this will come as much of a shock to most people. So many people were using their credit cards to come up with the extra cash for their mortgages. Not just that, but many people live off their credit cards for various reasons from just getting their bare necessities to keeping up with the Jones.
We live in a world that is run on credit. It is the next logical step in the progression of the market fall out.
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- viva_canuks
- 1 year ago
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