A Looming Debt Default Cloud – Credit Card Debt
Credit card debt is mounting. The American consumer is being consumed by the shadows of their own consumption. The minimum payments are reaching the max. The Max balance limit is shrinking with every opportunity credit card companies are presented with.
It almost doesn’t make sense. Just a year or so ago you couldn’t keep the offers away. Then suddenly you can’t front money to loan yourself. This is a dangerous and bizarre market we find ourselves in. The financial world is one in turmoil. The mortgage and housing industry seems to be out cold and the looming title wave of credit card defaults seems unavoidable.
Well there are several bright notions and some great debt solutions that are available to those of us who have fallen victim to financial hardship.
First the good stuff that has taken place…
- President Obama has passed a credit card holders bill of rights that outlines 10 consumer protection laws that protect credit card consumers from the predatory lending practices that we have all come accustom to whether we know it or not.
- The American consumer has started to save once again. For almost a decade we as Americans have been spending more then we have been taking in (thanks China… and sorry) . This practice has stopped and is now in reverse.
- Lenders are making settlement offers for those of us in need of debt help.
Now the not so good stuff that has and is taking place…
- We as collective financing consumers have taken on way too much debt and we are all going to suffer some consequences. the only question is how severe.
- Troubles from credit card debt is the tip of the iceberg. Not even considering the obvious problems stemming from the mortgage and housing crisis that have devastated the financial well being of many of us there are still tons of other debt and lending problems. For instance student loan debt is an absolute nightmare of nightmares. Car loans are also going to get worst.
- Unemployment… Need I say more.