As credit card use rises, many face red Christmas
News from Jennifer Waters’s Consumer … – MarketWatch:

By Jennifer Waters, MarketWatch

CHICAGO (MarketWatch) — Here comes the credit-card crunch again. Consumers, and increasingly subprime borrowers, are taking on more debt and could find themselves slipping back into the black — or rather the red — hole of financial distress.

“Banks want to lend,” says Steve Chaouki, group vice president for the financial services business unit of TransUnion, the credit-rating bureau. “And there isn’t much demand for credit from prime consumers.”

Reuters

Credit-card solicitations have fallen from their sharp increases a year ago and mailings to high credit scorers are dropping far faster than they are to those with below-prime scores, according to Ipsos, an international research firm.

“The higher-end FICO groups appear saturated or tapped out, leaving the appeal of direct mail to these groups less enticing,” says Roy Persson, the director of competitive tracking services for Ipsos.

Revolving credit, the bulk of which is credit cards, peaked in 2008 at $ 1.01 trillion, according to the Federal Reserve. That debt had recorded steady dro…………… continues on Jennifer Waters’s Consumer … – MarketWatch

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Consumers are taking on more credit-card debt — including subprime borrowers, Jennifer Waters writes today. That’s because banks want to lend again, but there isn’t much demand from prime consumers. Read more about that trend in today’s Personal Finance pages.

Plus, learn how t…………… continues on MarketWatch

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