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Credit cards, auto loans, student loans, HELOC's - it's all going down. I just wonder why anyone would show any surprise at that. I've felt all along that the whole house of cards would collapse. In other threads, people who think like me are called "doomers" or "D&G".
But it looks like we may be onto something, ya think?
Credit cards, auto loans, student loans, HELOC's - it's all going down. I just wonder why anyone would show any surprise at that. I've felt all along that the whole house of cards would collapse. In other threads, people who think like me are called "doomers" or "D&G".
But it looks like we may be onto something, ya think?
Derivatives. That's where the real problem lies. Mostly unregulated and with no oversight. The CDS auction payments will be due on Oct 21 for Lehman's as well. The current derivatives estimate is valued in the $500 trillion range. Even Warren Buffett has said he doesn't understand them.
Credit cards unlike home loans or even automobile loans are used to buy things like meals, clothes, oil changes, gasoline, etc. - things that have little or no remaining asset value. There simply cannot be a bailout on credit card debt - that's a debt which each individual cardholder must be held personally responisible for.
Credit cards unlike home loans or even automobile loans are used to buy things like meals, clothes, oil changes, gasoline, etc. - things that have little or no remaining asset value. There simply cannot be a bailout on credit card debt - that's a debt which each individual cardholder must be held personally responisible for.
Agreed. People will either service the debt or go bankrupt. It's up to the credit card issuers to tread carefully and negotiate with borrowers if they have any hopes of getting their money back.
Credit cards unlike home loans or even automobile loans are used to buy things like meals, clothes, oil changes, gasoline, etc. - things that have little or no remaining asset value. There simply cannot be a bailout on credit card debt - that's a debt which each individual cardholder must be held personally responisible for.
Hello Kooter,
Have you been watching the news? The government isn't doing anything to help over leveraged homeowners. Why would you even think they'd help you with credit card debt.
I've been asking myself this same question. My wife told me the other day that the average family has something like $10000 (can't remember the figure exactly but it was shocking) in credit card debt....AVERAGE. With the way things are going there are going to be tons of defaulted accounts. I can see the big card companies going bankrupt. As was said above people use cards to by things that you can't liquidate in a lot of cases. You can't repo an oil change or a trip to the hair dresser. What is the plan for these card companies when half the people who owe these huge amounts can't pay it?
Credit cards unlike home loans or even automobile loans are used to buy things like meals, clothes, oil changes, gasoline, etc. - things that have little or no remaining asset value. There simply cannot be a bailout on credit card debt - that's a debt which each individual cardholder must be held personally responisible for.
That's not how it works now. Credit card debt = unsecured debt. So, people can pretty much walk away from their credit card debts with little recourse. UNLESS the CC company decides to sue them. With the level of defaults going on right now, it is HIGHLY unlikely that they are going to go after everyone. They will try their usual corn ball tactics to scare people (just read some of the posts about this on this very forum). Other than that, after 3 to 5 years (depending on state) they cant come after you. Then after 7 yrs it comes off your credit report (slate whipped clean). Thats how it works my man. Will these companies be bailed out? Well they are already being bailed out. If I remember right, its a tax right off so they get their money. Its those other companies that buy your debt for pennies on the dollar and try to come after you that will take the reeming.
From the article:
Quote:
Credit-card delinquencies are likely to become the next flashpoint in the credit crisis, though the impact on the overall economy won't be as severe as the housing slump, analysts believe.
These "economist" they are talking to must not have gotten the memo about consumer spending and its impact on GDP. Consumer spending makes up 70% of the U.S.A. economy. Now imagine how much of this spending is done via credit.
I've been asking myself this same question. My wife told me the other day that the average family has something like $10000 (can't remember the figure exactly but it was shocking) in credit card debt....AVERAGE. With the way things are going there are going to be tons of defaulted accounts. I can see the big card companies going bankrupt. As was said above people use cards to by things that you can't liquidate in a lot of cases. You can't repo an oil change or a trip to the hair dresser. What is the plan for these card companies when half the people who owe these huge amounts can't pay it?
I was reading in Kiplinger Mag About Average american's credit card debt is
around $ 16 ,000 !
Credit Card Companies will most likely eat most of this DEBT In ChargeOffs .Alot more americans will be unemployed and on the dole
So how can they sue Defaultors ???
Most Credit Card Companies will most likely go Bankrupt themselves !
Along with AMERICA?
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