The American Bankers Association has reported that credit card delinquencies are at a record level and put the blame on higher gas prices.
While I have no doubt that higher gas prices have affected the budgets of many people, it’s scary the number of people who are currently living on the edge. While I would expect that increasing gas prices would cause families to redistribute their budget money, it isn’t a good sign when it forces a large number of people to begin defaulting on their debt obligations.
Unfortunately, this trend will likely increase. Gas prices have risen significantly since the second quarter report and with winter just around the corner, the prices for natural gas and heating oil will put even more strain on budgets. Then there is the aftermath of Hurricanes Katrina and Rita that will undoubtedly have a huge affect on people who lived in those regions.