An outfit called Innovest has recently come out with a new report on the state of Americas credit card industry. Their preliminary conclusions point to some scary implications for the economy. In a nutshell, the report says several things:
1) The credit situation of the average American has deteriorated over the past 10 years, with mortgages being just a small part of the larger picture.
2) About 30% of all credit card debt is held by subprime borrowers.
3) Due changing banking practices, 1 in 10 credit cards may default by the end of 2009, possibly resulting in up to 1.2 billion dollars in losses.
Click here and here for the gory details.
Best,
James
DINKS (Dual Income No Kids) Finance is a blog discussing personal finance for couples. While by no means financial experts, we own a variety of assets including real estate and stocks. We've both been up to our eyeballs in debt and have made tons of financial mistakes. However, we've both successfully retired that debt and we both do learn from our failings. We hope that our voice in this blog can help others in achieving their goals!
