In case you did not know, there is another bubble, growing massively in this country, getting ready to shoot. Revolving credit card consumer debt continues to grow every month, eventually breaking the $ 900 billion mark for the first time in June last.Federal Reserve reports that this year, Americans have piled up to $ 39 billion in new credit card debt. We refer to the tsunami crisis looming credit card. Better batten down the hatches!
For the month of August 2007, the U.S., consumers are adding another $ 6.2 billion in new debt on top of $ 5.6 billion it racked up in July. All in all, including everything except mortgages, Americans owe nearly $ 2.5 trillion in debt! Now that the mortgage game is over, all that easy money is made, the next big thing will milk bank for maximum growth and profit credit card. Fees and fines are growing steadily for years, such as average interest rates. Last year, banks have more than 100 billion dollars in interest and another $ 50 billion in fees and penalties. These guys are your friends
Many people who have been squeezed by the bursting housing bubble, increasingly rely on their credit cards for life. Since the cap money for home equity is run dry, and their lifestyles do not change, or circumstances such as losing a job or medical problems cause them to continue to rely on credit cards, no end in sight to how much additional debt John Q . The public will be. At some point, the dam has burst, and a lot of people are going to drown.
Who knows how many people live beyond their means over the past few years, removing the temporary wealth in real estate, only to spend it on luxuries such as holidays and lavish weddings in Tuscany? How many people carry unsecured, credit card debt for their property, only that the risk of foreclosure if you miss a few payments? How about people who think the value is already overpriced home will continue to grow, and took out a mortgage teaser rates, hoping to refinance to get in a couple of years and are now stuck with a mortgage that has doubled, and no way to pay for it?
Now that the game is over, these people are turning to their credit cards to survive. People who were "hooked" on a teaser rate mortgages, are now in a position to pay "real" mortgage payment. Many go into default on the mortgage, while keeping your current credit cards. Some use them as an ATM machine are maxing out their limits, and constant barrage of applying for new cards to grace your mailbox.
They live in fantasy land if they think they missed a mortgage payment will not hurt their credit. Give it a month or three, when a credit card to see that you are missing mortgage payments, they jack your interest rate to 25% +, then you are, excuse my French, "drunk". Most payments will lose interest, and it could take 10-100 years to pay off debt.
Card companies know people will do anything to stay in touch with the card, and that people need cash. Requirements that credit cards are the lowest in 10 years according to Fed survey, if you have a pulse, you can get a credit card. They even give credit cards to people pets.
Junk mail credit card calls to grace your mailbox are driven to the post office in the semi-trucks on pallets, and they are unloaded with forklifts. While mailers are actually less than what is sent from the peak in 2005, the percentage of people responding to, and be accepted by credit card companies, has risen steadily, and in fact has increased three times since 2005!
Is all the result close to taking equity from your home overpriced. It was never sustainable, and I feel sorry for people who bought at the peak, paying $ 600,000 plus a 40-year-old house that is not worth 1 / 4 of that price. I think the balloon could keep growing, and the median price of the house exceeded the ability of the average person to buy one, it's just a matter of time before something has to give, and it is.
Now I talk to people all day who are taking cash advances from credit cards to live on, or pay their mortgage. That will end at some point
Bubble credit card will be the next one burst. If your credit card debt is out of control, you have to do something. Through the process of debt settlement, there are ways to deal with your creditors for less than you owe, within 3-4 years, that will leave you in a position to get a new loan after it is over. Read our free report on Debt Settlement to see whether the choice for you.
