Arizona Mortgage Guru » First Mortgages Now Credit Cards

From CNNMoney (August 28):

NEW YORK (CNNMoney.com) — American consumers are defaulting on their credit cards at a sharply higher rate compared to last year, in what could be another consequence of the recent subprime mortgage market crisis, according to a report published Tuesday.

In addition, late payments are also up, cardholders are showing signs they are less willing to pay and credit card companies have written off 30 percent more payments during the first half of this year versus a year ago, the Financial Times reported.

See full article here.

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Tags: cnnmoney, credit cards, personal finance
Categories: Personal Finance

2 Responses to “First Mortgages Now Credit Cards - Quick Tell the President”

Jessica Bennet wrote a comment on September 6, 2007, 12:49, am

Yes, I feel this is another consequence of the subprime market, although it was the subprime market downturn that made borrowers apply for credit cards in order to get out of their financial crunch.

But I think credit card companies should have realized that those unable to pay off their home loans might get into trouble paying off their cc debts also.

Regards,

Jessica

Shailesh Ghimire wrote a comment on September 6, 2007, 8:45, am

Jessica,

You’re right. This is a fall out from the whole financial mess. I’m also hearing that car sales and car loans might be affected by this as well. It’s almost like someone pull a string and everything is falling.

Thanks for stopping by.
Shailesh