[HuffPost] Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come.
An Associated Press analysis of financial data from the country’s largest card issuers also found that the greatest rise was among accounts more than 90 days in arrears.
Experts say these signs of the deterioration of finances of many households are partly a byproduct of the subprime mortgage crisis and could spell more trouble ahead for an already sputtering economy.
« You’re looking at more and more distress _ consumers desperately trying to preserve their credit lines, but there’s nowhere else to go, » said Robert Manning, director of the Center for Consumer Financial Services at Rochester Institute of Technology. « It’s like a game of dominoes. »
[Telegraph] Crisis may make 1929 look a ‘walk in the park’
As the credit paralysis stretches through its fifth month, a chorus of economists has begun to warn that the world’s central banks are fighting the wrong war, and perhaps risk a policy error of epochal proportions.