Bad credit card debt is expected to reach $100B

East Valley Tribune ^ | 10-18-08 | Edward Gately

[Oatka]

Real wages have grown by only 4 percent . . .

Thank "Global Competition" and "Free Trade" for depressing wages.

[Sloth]

According to Innovest, the lenders that likely will suffer the largest losses will be... • Those that have made it nearly impossible for consumers to repay their balances by piling on fees and penalties, and unexpected interest rate increases because of changes in their overall credit situation.

Good.

[Moonman62]

Don’t forget illegal alien slave labor.

[Sloth]

I don’t think the credit card companies will be able to sell this paper for pennies on the dollar.

Out of curiosity, does anyone know why the card companies don't first offer to sell the bad debt to the *debtor* (i.e., effectively settle it) at the the same rate they'd sell it to another company?

[Terry Mross]

I’m told so they can get the most write off.

[RKBA Democrat]

“If you got a good credit card as opposed to bad, wouldn’t the debt therefore be considered um.... good?”

In my view having “good” debt is sort of like having “good” cancer.

[Reeses]

Its credit card loss rate jumped to 7.3 percent from 6.46 percent in the second quarter and 4.37 percent a year ago.

Most retailers losses from shoplifting don't come anywhere near 4 percent. Credit cards are an odd business.

[cherry]

why should we feel sorry for any of these people...neither the credit card companies nor the poor idiots who keep living the high life on no money....

when we first married, 33 yrs ago, we had about $10,,000 in the bank plus a few savings bonds, no debt, just out of the service,etc...my husband even got a job....

we couldn't even get a Sears charge card.....NO CREDIT!

[cherry]

I would guess that the 75% figure includes people that have HELOCs with credit cards attached to the accounts...

[longtermmemmory]

How much of this bad credit card debt is going to be burried in obama micro campaign contributions.

Unsecured debt is dischargable in bankrupcty. The have TRIED to make it not dischargable with a laughable means test and pre-filing time presumptions but those deny reality.

This is a result of the credit card companies figuring they can make more money from bad customers and absorb the defaults with the added fees and tax write offs.