We are freaking out about the mortgage crisis... why don't we freak out about the credit card crisis?

Question

Most people owe over $10 K on their credit card and barely pay the minimum... this isn't big news because it doesn't hurt the stock market, right?

Don't think I'm clicking on any website called tuckpink.com

Answer 1

What crisis?

If people charge amounts that they can not aford to pay, it's nobody fault except theirs.

Answer 2

Because it's assumed that a much higher percentage of people will default on their credit card loans. It's already built into the system. Why else do you think we're all paying those high interest rates and late fees?

Also, the balances involved are much less. Most homes have a credit card balance in the low thousands, not over $10k. Even if they stiff the credit card company, it's only a couple of grand.

Besides which, when you default on your credit card, your home isn't taken away.

Now if there was some credit card bubble, where millions of people who never should have gotten credit cards, got these very low interest loans and told to charge it up to the hilt, and then were hit with increasing interest rates and payments later on, then yes, it might be the same thing.

Answer 3

Actually I heard on CNN that it is going to get really really bad with the credit card situation because many people who have mortgage problems are putting some of their mortgage payment on their credit cards which is only going to make a terrible situation much worse. They are going to have to lower the rates for mortgages.

Answer 4

Because the social security crisis is next in line.......then the credit card crisis.

Answer 5

That's next....after Congress deals with Senator Craig

Answer 6

CC purchases help the market because they hep the retail market which is a huge economy sector.