One of the main principles of economics is that markets are connected. This is also true of debt. The effects of the subprime mortgage crash, and the credit market crisis, are beginning to leak into household finances. More specifically, the debt problem is spreading to credit cards. Credit card delinquencies are up, reports the Kansas City Star:
Serious delinquencies also are up sharply: Some of the nation’s biggest
lenders — including Advanta, GE Money Bank and HSBC — reported
increases of 50 percent or more in the value of accounts that were at
least 90 days delinquent when compared with the same period a year ago.
And credit card delinquencies are expected to rise further. Why? Because most holiday shopping is put on credit cards.
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