Delinquencies Reach The Credit Card Industry

It started with mortgage defaults, now bad credit habits are effecting credit card companies as well. According to Fox News, credit card delinquencies are rising and issuers are feeling the effects.

• American Express is taking steps to protect itself in the event that delinquencies continue to increase
• MasterCard's stock is down 20%
• Citicorp's results are down and they blame the U.S. credit card business

Consumers may have trouble making credit card payments, but they certainly aren't decreasing credit card usage. The Federal Reserve reports revolving credit increase of 8.4% to more than $900 billion in June 2007.

Just how much credit problems affect the credit card industry remains to be seen.

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