Rising Credit Card Delinquencies
Posted by Peter Frost on Wednesday, October 14, 2009
Millions of people in the USA are facing impossible levels of personal debt, rising credit card debt delinquencies, utility shutoffs, foreclosures and homelessness. Revolving household debt has soared since 2006. Consumers falling behind the cost of living who could no longer tap into their home equity have turned to credit cards which is a much more expensive form of credit. Today revolving debt is estimated to be over $970 billion, with average credit card debt per household now $10,678 which is up 30 percent from 2000.
Collection agency profits have been growing between four to six times over the past several years, according to Securities and Exchange Commission statistics. All indications are that tactics have become increasingly aggressive, and sometimes criminal. Much of this collection agency business borders on illegality, employing a policy of deliberate harassment and abuse. As an collection industry, it has long garnered the most business practice complaints by the Federal Trade Commission, but the past few years have seen reports skyrocket.
There is a vast amount of debt in place in American finance. Every type of debt is being securitized, sliced and diced in the now notorious manner of subprime mortgages. The banks have created these subsidiary industries and are dependent upon them. Not only have they have spun off securities in the accounts receivable industry, but they trade in virtually every kind of debt from motorcycle loans, recreational vehicle loans, franchise loans, boat loans, nonperforming loans, equipment leases, home equity loans, trade receivables and student loans. These are all sources of speculative profit.
At bottom, all of this debt represents a claim on surplus value extracted from the labor of the working class. The working class must be made to pay or face the abhorrent policies and tactics of the debt collection industry. These abuses are not excesses of a few cowboy entities, but reflect the parasitic character of capitalism and the specific requirements of the banking industry.
If you are needing help then debt consolidation is able to achieve great reductions in credit card debt without the collateral damage of a bankruptcy filing. This program works by negotiating with the consumers creditors in order to extract concessions in the amount of debt and interest that is owed. In some cases debt consolidation is able to achieve a fifty percent reduction in monthly payments and shorten the repayment.
Collection agency profits have been growing between four to six times over the past several years, according to Securities and Exchange Commission statistics. All indications are that tactics have become increasingly aggressive, and sometimes criminal. Much of this collection agency business borders on illegality, employing a policy of deliberate harassment and abuse. As an collection industry, it has long garnered the most business practice complaints by the Federal Trade Commission, but the past few years have seen reports skyrocket.
There is a vast amount of debt in place in American finance. Every type of debt is being securitized, sliced and diced in the now notorious manner of subprime mortgages. The banks have created these subsidiary industries and are dependent upon them. Not only have they have spun off securities in the accounts receivable industry, but they trade in virtually every kind of debt from motorcycle loans, recreational vehicle loans, franchise loans, boat loans, nonperforming loans, equipment leases, home equity loans, trade receivables and student loans. These are all sources of speculative profit.
At bottom, all of this debt represents a claim on surplus value extracted from the labor of the working class. The working class must be made to pay or face the abhorrent policies and tactics of the debt collection industry. These abuses are not excesses of a few cowboy entities, but reflect the parasitic character of capitalism and the specific requirements of the banking industry.
If you are needing help then debt consolidation is able to achieve great reductions in credit card debt without the collateral damage of a bankruptcy filing. This program works by negotiating with the consumers creditors in order to extract concessions in the amount of debt and interest that is owed. In some cases debt consolidation is able to achieve a fifty percent reduction in monthly payments and shorten the repayment.