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About Decline Credit Card Increase Debt
If you are following FAZ and FAS it's absolutely necessary to know the components. Visa (V) and MasterCard (MC) both have been reporting declining "credit" card use and increasing "debit" card use, for several quarters now. . Both V and MC process card transactions, NOT card accounts,. The banks issue the cards, carry the debt, and therefore all the RISK. Knowing this helps, should help, to identify as a "bill of goods" any blog, news article, or report that is "hyping" increased risk of card defaults dragging down the financials.
One news report was surprised that a couple of "financials" were only reporting about 36% of the expected write-offs. Surprised! WHY? If people are using their debit cards MORE and their credit cards LESS ( and V and MC, both, are TELLING us this is EXACTLY what is occuring ...) ... it's likely they're paying down debt and only spending money they KNOW they have. Now, this is GOOD for the financials ... but probablly, not good for an economy built on "out-of-control" spending. Hopefully, there is a happy middle ground somewhere out there.
Ahorre December 4, 2009 07:59 AM | Deudas