Is credit card debt one of the factors hurting the economy? - cut credit card debt
All notices of credit card debt that you hear "Cut your debt in half!" Well, I think it's good to get out of debt, what if you owe $ 10,000 and pay only $ 5000 is not unfair to the person or persons who will?
Could lead to save them all, and it?
Tuesday, January 5, 2010
Cut Credit Card Debt Is Credit Card Debt One Of The Factors Hurting The Economy?
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3 comments:
Yes, it's a big problem, but have not yet hit the newspapers. For credit cards are in bonds, which are synthesized backed by assets such as bonds and sold. As people lose their jobs, they are not able to pay their tickets and to junk bonds, too.
Moreover, in normal times, consumer spending is about 70% of economic activity, with much credit. With the current liquidity crisis, banks will refuse to offer new cards and online increased output. With the fact that many people are already combined at or near the top of their cards so a decline in economic activity and more layoffs.
Yes, but it is a relatively small problem.
Most of the "high risk" cards are interest and cast the value of the company itself, even if the consumer defaults, after a while, however, interest and penalties for delays in their "losses", as they have never borrowed money. Believe me, it is misleading in its accounts.
Secondly, what really killed the banks, the mortgage crisis, and no one to blame but themselves. They came out and pushed loans to people who could not pay it and mislead consumers to believe they knew it could afford. The motivation behind this was that in earlier times had a mortgage, could take home and raised a profit on the property value.
The problem is the bursting of the housing bubble and now the banks are not alone with these mortgages in default houses worth less than the loan, so they have a great success.
In comparison, credit card debt is verysmall.
Yep. It hurts.
By car finance and leasing companies.
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