Monday, December 24, 2007

Credit problems

Unpaid credit cards bedevil Americans - Yahoo! News
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.

"Debt eventually leaks into other areas, whether it starts with the mortgage and goes to the credit card or vice versa," said Cliff Tan, a visiting scholar at Stanford University and an expert on credit risk. "We're starting to see leaks now."

Don't use credit cards as a bank! the interest rate will get you! I know a few friends that had this problem... one missed payment.... pow!

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