Tuesday, Sep 25, 2007
Meanwhile, bond rating agency Moody’s has reported that credit card companies wrote off 4.6% of payments as uncollectable between January and May,
moneyweek.com: Could this be the new subprime crisis?
Meanwhile, bond rating agency Moody’s has reported that credit card companies wrote off 4.6% of payments as uncollectable between January and May, a 30% year-on-year increase. It’s likely to get worse; according to Merrill Lynch’s David Rosenberg, overall balances on credit cards jumped by an annual rate of 11% in May and June, showing that distressed homeowners are turning to their credit cards. “The lender of last resort as banks pull in their horns is the credit card.” All this presages a jump in credit-card delinquencies over the next year. “The next shoe to drop” in this subprime mortgage fiasco “is probably going to be the credit-card business”.
Posted by chris @ 06:38 AM (231 views) Add Comment
2 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. alan said...
Yes, card fraud is a growing pain.
However spending beyond our means is a national sport these days. Half of Essex wants to be a celeb these days. Everyone wants to be "seen in something good".
German executive cars.
Flashy designer clothes
etc.
2. Yellerkat said...
But that's the US! No dodgy credit card debt here!