Credit card losses mount
April 29, 2009 | alternatives, industry | Comments (0)Missed this from yesterday:
Fitch’s Charge-Off Index, which tracks the write-down of uncollectable debt by credit card firms, climbed 101 basis points to a record 8.41 percent, eclipsing the prior mark of 7.52 percent reached in November 2005 during the bankruptcy spike.
The charge-off rate has increased 28.01 percent in the past six months and is up 46.77 percent year-over-year. The rate is being amplified by declining asset pools, as issuers continue to tighten underwriting at a time when overall consumer spending is slowing.
“As consumers struggle between surging unemployment and steeper declines in home and equity market values, they have been cutting spending and a larger percentage have fallen behind on their credit card bills,” said Fitch.
Pass the antidepressants.
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