The Associated Press ran an article the other day about how the subprime mortgage industry mess is now causing some people to default on their credit cards. I guess this is logical. When people run into money trouble, they start charging more or taking cash advances off their credit cards. The article said that serious delinquencies--those 90 days delinquent--were up about 50 percent or more in the value of accounts at least 90 days late compared to the same period last year.
The article also predicted that defaults will be even worse after the holiday season, and mentioned that economists say Americans have a long standing attitude that credit card debt is not a big thing.
I am lucky that I do not have a mortgage, so I don't have to worry about this aspect. I have had credit card debt for too long, and I want to get rid of it. Speaking for myself, I think credit card debt is a big deal. I think what happens to many, including myself, is that you accumulate debt on credit cards quicker than you realize and then you are in a pickle.
The best thing is to not use credit cards. I feel badly though for those caught in the mortage mess who are just trying to survive now, and haven't gotten their heads cleared about it yet or figured out a game plan.
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