Consumer credit rose at an annual rate of 6.5% in June, to a record $2.45 trillion. As they did in 2001-2002 when the stock market “wealth effect” dried up, consumers are turning to their credit cards to keep up appearances.
By no coincidence, at all, we’re sure… the rate of defaults on credit cards in the first half of 2007 rose 30% over the same time the year before. Late payments are on the rise, as well. Bank of America, Citigroup and Capital One have all raised fees and interest rates in response.
By no coincidence, at all, we’re sure… the rate of defaults on credit cards in the first half of 2007 rose 30% over the same time the year before. Late payments are on the rise, as well. Bank of America, Citigroup and Capital One have all raised fees and interest rates in response.
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