Tuesday, November 6, 2007
Stop me if you've heard this before...
Credit Card Debt a $915 Billion Disaster-in-Waiting for Banks
Tuesday, November 6, 2007 8:14 PMBy: Newsmax Staff
Think the estimated subprime debt load carried by the big international banks is big, at $1 trillion?
How about this: Americans now owe nearly as much – a record $915 billion – on their credit cards alone.
And defaults and delinquencies in the credit card sector are piling up – which means big banks are on the hook, again. More sand in the gears for the global economy.
Credit card companies wrote off 4.58 percent in payments between January and May, almost a third more than in the same period in 2006, according to Moody's Investors Service. As a result, lenders such as Citigroup, Bank of America, and American Express, among others already reeling from the subprime mortgage disaster, are being further weakened.
I haven't had a credit card since September '06. I feel happier than a test subject in proctology school.