Jan
26th
Mon
26th
Credit Card Debt Starts Shaking
Finally, newspapers start talking about the next tsunami of debt write-off related to credit card debt: The Washington Independent ยป House of Cards.
As job losses mount, the default rate on credit card debt (which reached an average of over $11,000 per card in 2008 in the US!) will spike and trigger a domino effect across financial institutions.
Write-offs will negatively feedback into the system by further reducing consumer lending and reducing consumption.
My feeling is that bad news are not over.
