Wednesday, September 28, 2005

Gas Prices Cut into Wallets

This doesn't look good for the Credit Card Industry. It seems Americans can't pay for the high gas and keep up with their ballooning credit:

The American Bankers Association reported Wednesday that the seasonally adjusted percentage of credit card accounts 30 or more days past due rose in the April-to-June quarter to 4.81 percent. That followed a delinquency rate of 4.76 percent in the first quarter and was the highest since the association began collecting this information in 1973.

It seems that Americans are living too far beyond their means. The low savings rate provides little cushion for these people as well. Let's hope the disruptions don't give us $4 gas anytime soon. Now that will really send Americans reeling.

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