How rising home values, easy credit put your finances at risk

[MidnightVoice]

http://www.usatoday.com/money/perfi/credit/2008-06-17-credit-card-trap_N.htm?loc=interstitialskip

During the housing boom, from mid-2001 to early 2006, banks raised card limits at a blistering pace across the nation, in part because of a surge in home equity, much of it now vanished. As home prices ballooned, banks also plied customers with a record number of offers to open new card accounts. Then they guided card borrowers to tap into rising home equity to pay off card balances with artificially inflated home equity, putting their homes at risk.

Today, the mix of high-rate debt and meager home equity has squeezed consumers — and threatens to prolong the economic slowdown. Those are the findings of a USA TODAY investigation, based on analyses of credit card data from Equifax credit bureau, Moody's Economy.com, Synovate Mail Monitor and Mintel Comperemedia.

The consequences are visible. Foreclosures are at record levels. And credit card delinquencies are nearing a six-year high as millions of borrowers struggle to keep up with a record load of revolving debt, mostly on credit cards.

Card issuers extended too much credit, too quickly because of the "phantom equity" in people's homes, says William McCracken, CEO of Synergistics, a financial-services research firm.

In turn, this "reckless extension of credit is contributing to the financial vulnerability that many families are facing," says Travis Plunkett of the Consumer Federation of America.

[Anonymous]

Great find MV-

These companies also made it more difficult to BK CC debt-

"calculated risk assessment" - They did this to make $ and they have and will make this $ - 

Even with raising defaults on CC's these companies are still making $- and it's not their $ anyways- it's all in securities-

capitol One- 1st QTR 2008 made almost a billion dollars before taxes-

Income Before Tax

967.05

I am sure all of my CCC's know that -

I have $XXX K in home equity

I am not eligible to BK

They know I used to carry balances- but don't anymore

They know I how and where I use my cards,

They know I do $XXXX in transactions with XX CCC on a monthly basis -

[Anonymous]

Not only that Tim,

They know where you live!