Now going on $9 trillion in federal debt growing year by year whether Democratic or Republican can it really be said that the Economy thrived under Greenspan/ The Fed while the debt grow? Credit Card Debt, Mortgage Debt, Installment loan and more are at record levels as is the interest on debt. Approximate 42% on American's monthly income goes to debtt payments....Sit and think about that

As Economy Thrived Under Greenspan, So Did Debt

By Nell Henderson
Washington Post Staff Writer
Monday, January 23, 2006; Page A01

Greenspan's Fed didn't do it alone, economists agree. Other factors helped fuel the borrowing binge, including global financial trends that have helped keep mortgage rates low and prompted lenders to extend more credit to more people.

The result is a prosperity built on borrowing, say many economists, pointing to a string of recent records and firsts:

· U.S. household debt hit a record $11.4 trillion in last year's third quarter, which ended Sept. 30, after shooting up at the fastest rate since 1985, according to Fed data.

· U.S. households spent a record 13.75 percent of their after-tax, or disposable, income on servicing their debts in the third quarter, the Fed reported.

· The trade deficit for last year is estimated to have swollen to another record high, above $700 billion, increasing America's indebtedness to foreigners.

"The economy's increasing reliance on unprecedented levels of debt is clearly unsustainable and extremely troubling," said Charles W. McMillion, chief economist with MBG Information Services, a financial analysis firm. "The only serious questions are when and how will current imbalances be addressed and what will be the consequences."
[Read More!]

The Article I wrote “Sub Prime Customers The Target for Credit Card Debt.”

It is expanded here. The sub prime mortgage meltdown has had it’s on the economy. Economists feel a recession is likely and the Feds is stepping in to lower interest rates. Credit card crisis is having an ugly impact on the economy.

"The last life preserver of home equity loans has just been ripped away, so families are now alone in a sea of debt," says Harvard Law School's Elizabeth Warren, a law professor and expert on consumer debt. She's referring to the ability of families to turn the rising value of their homes into home equity loans to pay off their fat credit card bills.
"Whether they drown quickly or slowly is an open question, but they will drown," Warren said. "The numbers don't lie on this; there aren't any other options here."

CONSUMING FIRE-DEBT SLOWLY KILLING THE BIG SPENDERS By CATHERINE CURAN

September 16, 2007 --

What else can I tell you to move into action?
[Read More!]

By Ilyce R. Glink

Summary: A homeowner is looking to refinance even though their credit score is in the 500s. Ilyce cautions the homeowners to get a legitimate lender and credit counselor.

Q: I need an answer fast, as we are in the process of refinancing. We have about $55,000 in credit card debt, $45,000 in equity line and our house mortgage is $159,000.
(article continues below useful links
[Read More!]

Credit card companies woo struggling mortgage-holders

By Robert Gavin, Globe Staff | September 4, 2007

As subprime borrowers began to default on their mortgages in rapidly growing numbers this year, credit card issuers increased their efforts to sign up such customers with tarnished financial histories, according to a market research firm.

Link to The Sub Prime Market

---

Please, please read this articles. You will end up shaking your head and wondering how could this be. Credit card companies are marketing to home owners who are in default on their mortgages? Yes, just like college student, the sub prime customers in the United States are a great market place. Why? The answer is simple though counter intuitive...that is beyond common sense. You see it is all about creating debt, yes, that's right. The more debt you make the more profit for the Bankers and the Credit Card Industry.

Your misery and financial ruin is their source of power and wealth!
They (our representative in government) still tell us that we are a country of Law so for now while that may still be so, use it (the Law) or lose it. You are afraid? Think of what we have lost and will lose if you give up this power to use the Law to put these Debt Inc. business out of business. One can always dream of a people free of debt! [Read More!]

'Rising' credit card costs warning

5 days ago

The cost of using a credit card is increasing as providers use a range of charges to make money from customers, a consumer group has warned.

The Office of Fair Trading (OFT) said last year that credit card companies must cut the penalty fees they charge customers to a maximum of £12.

But Which? said since then other fees and charges levied on customers had "notably increased".

Some credit card providers have introduced annual fees of up to £24 a year, while the amount charged to people transferring a balance from one card to another has risen from a typical 2% to 2.5% or 3%.

Click Here For The Article For The Press Association
[Read More!]