I feel badly for the news reporters that just churn out what they are told to churn out about consumer credit card default rates rising. What fails to get mentioned in each and every article or report that I have read is the correlation between consumer credit card default rates and the rise in the consumer redit card interest rates.
Isn't it possible, just possible, that for every percentage point that the consumer credit card interest rate is raised, there will be a corresponding rise in the default rate of at least one percent as well?
In my opinion it results in the reporter looking silly if they are unwilling to include such a simple question in their credit card default article or column... "
Do you, oh grand credit card executive/pubah, see a correlation between raising interest rates on credit card accounts and the rise in credit card defaults?
Unless the credit card industry executives are asked the question above, we cannot make any progress in getting to the truth about what is really going on.
