Banks Write-Off Record Credit Card Debt

Banks Write-Off Record Credit Card Debt

Recent articles in the financial papers reported how consumers were paying down their debts. Well, the actual figures paint a different story.

According to an analysis by Federal Reserve data, the bulk of 2009’s drop in consumer debt came about because banks were forced to write-off loans people failed to pay. Of the $93.2 billion drop in consumer card balances, $83.27 billion were the aforementioned required write-offs.