Credit card debt…next shoe to drop?

[dharmagirl]

This is an interesting 20 minute interview with Pulitzer prize winning, NY Times writer Joe Nocera.

http://www.npr.org/templates/story/story.php?storyId=91187417

In addition to comments on the housing bubble, personal investing, etc. Joe notes that credit card debt could be the next “shoe to fall” on Wall St:

“Some people (used to HELOC money)…want to live the same living standard and suddenly the spigots have been turned off. Many many people have then turned to credit cards to sustain the lifestyle or to pay back their home equity loan…

Growth in credit debt over the last 3 years has dramatically outpaced what it did the previous 5-7 years….when people worry about credit cards being the next shoe to fall, they worry about people reaching the end of the line on their credit card debt and then beginning to defaulting on credit cards, with this having the same ripple effect on Wall Street that the housing crisis has.

Do i really think this will happen? Not to the same extent of the housing bubble…but it could happen if this recession – and yes i think we’re in a recession – lasts a long ime.

Q: Is recession a particularly difficult time for paying off personal debt?

A Recession is when people get tossed out of work…they don’t get raises…times are tough. If people are in fact using using credit cards to replace Home equity loans and don’t have the money to pay for the refinancing of their home, how can they pay back that credit card debt? It’s a dicey time for American borrowers.”

[jpinpb]

Can’t walk away from credit card debt. I think our buddy Bush took care of that. Can’t file BK on credit cards.

I look out on the horizon and the clouds keep getting darker and darker. How long before there’s a stampede to take cover from this wicked storm approaching?

[jpinpb]

Can’t walk away from credit card debt. I think our buddy Bush took care of that. Can’t file BK on credit cards.

I look out on the horizon and the clouds keep getting darker and darker. How long before there’s a stampede to take cover from this wicked storm approaching?

[jpinpb]

Can’t walk away from credit card debt. I think our buddy Bush took care of that. Can’t file BK on credit cards.

I look out on the horizon and the clouds keep getting darker and darker. How long before there’s a stampede to take cover from this wicked storm approaching?

[jpinpb]

Can’t walk away from credit card debt. I think our buddy Bush took care of that. Can’t file BK on credit cards.

I look out on the horizon and the clouds keep getting darker and darker. How long before there’s a stampede to take cover from this wicked storm approaching?

[jpinpb]

Can’t walk away from credit card debt. I think our buddy Bush took care of that. Can’t file BK on credit cards.

I look out on the horizon and the clouds keep getting darker and darker. How long before there’s a stampede to take cover from this wicked storm approaching?

[dharmagirl]

Some days, I think I’ll just move to Costa Rica and watch the U.S. economy blow up from afar while I’m sipping a fruity drink and having a massage on the beach….

[dharmagirl]

Some days, I think I’ll just move to Costa Rica and watch the U.S. economy blow up from afar while I’m sipping a fruity drink and having a massage on the beach….

[dharmagirl]

Some days, I think I’ll just move to Costa Rica and watch the U.S. economy blow up from afar while I’m sipping a fruity drink and having a massage on the beach….

[dharmagirl]

Some days, I think I’ll just move to Costa Rica and watch the U.S. economy blow up from afar while I’m sipping a fruity drink and having a massage on the beach….

[dharmagirl]

Some days, I think I’ll just move to Costa Rica and watch the U.S. economy blow up from afar while I’m sipping a fruity drink and having a massage on the beach….

[Sunnyjim]

The original BK reform bill did indeed exempt credit card debts from being disharged in Ch. 7 BK. The final bill that was passed does not NOT exempt credit card debt from disharge.

In general, all unsecured debts may be discharged in a Ch. 7 BK proceeding except for certain public obligations such as taxes, judgements, and child support, etc.. Secured debts (like car loans) are usually dealt with by liquidating the asset and then the remaining balance due (if any) is discharged as an unsecured debt.

I am no attorney and so don’t base ANY decisions on the above statements. But I stayed at a really great hotel last night… (couldn’t help making a funny…). No, I was just curious about the actual changes to the BK laws and browsed through a “Dummies Book” for the new laws. Easy for anyone to verify via google or at a site like this:

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/process.html

[Sunnyjim]

The original BK reform bill did indeed exempt credit card debts from being disharged in Ch. 7 BK. The final bill that was passed does not NOT exempt credit card debt from disharge.

In general, all unsecured debts may be discharged in a Ch. 7 BK proceeding except for certain public obligations such as taxes, judgements, and child support, etc.. Secured debts (like car loans) are usually dealt with by liquidating the asset and then the remaining balance due (if any) is discharged as an unsecured debt.

I am no attorney and so don’t base ANY decisions on the above statements. But I stayed at a really great hotel last night… (couldn’t help making a funny…). No, I was just curious about the actual changes to the BK laws and browsed through a “Dummies Book” for the new laws. Easy for anyone to verify via google or at a site like this:

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/process.html

[Sunnyjim]

The original BK reform bill did indeed exempt credit card debts from being disharged in Ch. 7 BK. The final bill that was passed does not NOT exempt credit card debt from disharge.

In general, all unsecured debts may be discharged in a Ch. 7 BK proceeding except for certain public obligations such as taxes, judgements, and child support, etc.. Secured debts (like car loans) are usually dealt with by liquidating the asset and then the remaining balance due (if any) is discharged as an unsecured debt.

I am no attorney and so don’t base ANY decisions on the above statements. But I stayed at a really great hotel last night… (couldn’t help making a funny…). No, I was just curious about the actual changes to the BK laws and browsed through a “Dummies Book” for the new laws. Easy for anyone to verify via google or at a site like this:

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/process.html

[Sunnyjim]

The original BK reform bill did indeed exempt credit card debts from being disharged in Ch. 7 BK. The final bill that was passed does not NOT exempt credit card debt from disharge.

In general, all unsecured debts may be discharged in a Ch. 7 BK proceeding except for certain public obligations such as taxes, judgements, and child support, etc.. Secured debts (like car loans) are usually dealt with by liquidating the asset and then the remaining balance due (if any) is discharged as an unsecured debt.

I am no attorney and so don’t base ANY decisions on the above statements. But I stayed at a really great hotel last night… (couldn’t help making a funny…). No, I was just curious about the actual changes to the BK laws and browsed through a “Dummies Book” for the new laws. Easy for anyone to verify via google or at a site like this:

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/process.html

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