Credit Card Delinquencies Are Increasing

MSNBC reports sharp increases in credit card delinquences in recent months. Experts believe the delinquencies could have a negative impact on the economy.

Experts say these signs of the deterioration of finances of many households are partly a byproduct of the subprime mortgage crisis and could spell more trouble ahead for an already sputtering economy.

Why are delinquences rising? It's likely due to a lot of things. Recent mortgage problems, slowed job markets, and a careless attitude toward debt are just a few. More stringent bankruptcy rules could also be to blame.

Although we may not know a specific reason for rising delinquencies, we do know there are far reaching effects for individual consumers. The more delinquent you get on your acccounts, the harder it is to get caught up after penalties and fees are added. Not only that, late payments hurt your ability to get credit and loans in the future, especially if the accounts remain in a delinquent status.

Consumers can prevent such credit problems by being proactive. Learn to recognize warning signs, contact your creditors early, and don't hesitate to seek professional help.

MSNBC Article: Amount of unpaid credit card bills is rising

Recommended Reading:

• What To Do When You Can't Make Your Payment
• The Effects of Late Payments
• Signs of Credit Card Trouble
• How To Choose Consumer Credit Counseling
• Making A Get Out Of Debt Plan