Tougher Economic Times Affects Lenders As Well
So we’ve been talking about economic turbulence of late and how it affects individuals struggling to make ends meet.
On the flip side lenders are forced to deal with rising defaults on an estimated $920 billion that Americans carry in credit-card debt.
Delinquencies of 90 days or more rose 18% (to $961 million) October 2007 when compared to October of 06. One would assume that these stats would be precursors to a decrease in card use but unfortunately this simply is not the case.
According to Forrester Research, More than four out of ten consumers (between the ages of 18 and 21) who surf the Internet own at least one credit card. 65% of these youngsters used the Web to apply for the credit card.
According to the Experian-Gallup Personal Credit Index survey Approximately half of all credit card holders don’t pay the full amount of credit card charges each month. About 11% say they usually pay only the minimum monthly payment.
How much would you think Americans charge each year on fast food? In 2006 we racked up $51 billion worth of hamburgers and fries on our personal credit cards.
How many Americans say they charge more than they earn? According to the Federal Reserve Bank, 40%. Just think, that’s only the individuals who have accepted it and were willing to fess up.
