I’m paying mine off with as big a payment each month that I can afford. Unexpected bills made me take the card back out of the safe, but it’s been returned, and now I’m clearing the red ink.
Credit card defaults are up because credit card issuing banks are giving them out like candy canes at Christmas, to people who have no financial substance. My mailbox is full to overflowing with CC offers from banks in places I’ve never been, like South Dakota and Michigan..........
The credit card industry has allowed for major losses in the fees/interest they charge. Their entire marketing campaign has been to THROW credit at anyone and hope that a percentage would pay back. They target college campuses and young people they know do not have the sense to not play with something they cannot afford to pay off....it is all about playing the odds. After all, where else can any organization, bank or otherwise, make 20% per year on their money reliably??? The risk is worth it.
Ripple effects.....
Just means that the rest of the credit card suckers will have to pay more to bail out the companies.
Oh, too bad. Take the losses and learn something.