Tweet
One other thing I forgot to mention that really hasn't hit the news media yet but I expect it to next year.
I will make a prediction right now that this time next year, we will see personal bankruptcy unlike anything we have ever seen due to what I am seeing in the credit card industry.
As it stands right now, most of the major banks are raising their credit card rates to some outrageous rate for example 26% + prime. That would put current rates near 30% when prime rates are extremely low. Just imagine 30% on $10,000 of credit card debt. That would be a $250 monthly payment on interest alone. This is going to place a crushing blow on what is already a teetering economy. I find it truly amazing that these are coming from the banks that were bailed out by our government and feel sorry for those that are going to get caught in a storm that is looming on the horizon and will probably drive the country into further recession.
I will make a prediction right now that this time next year, we will see personal bankruptcy unlike anything we have ever seen due to what I am seeing in the credit card industry.
As it stands right now, most of the major banks are raising their credit card rates to some outrageous rate for example 26% + prime. That would put current rates near 30% when prime rates are extremely low. Just imagine 30% on $10,000 of credit card debt. That would be a $250 monthly payment on interest alone. This is going to place a crushing blow on what is already a teetering economy. I find it truly amazing that these are coming from the banks that were bailed out by our government and feel sorry for those that are going to get caught in a storm that is looming on the horizon and will probably drive the country into further recession.
Comment