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Are Credit Cards The Next Collapse?

American Express and MasterCard credit cards are shown in Washington June 25, 2008. Consumer groups have long complained that credit-card issuers push cards onto people who don't need them or can't afford them. They say that rising credit-card defaults - just like mortgage defaults - are largely the fault of banks who lent to risky borrowers. (Jim Bourg/Reuters)

First came trouble with mortgages, then home equity loans and commercial real estate. Now, banks are starting to worry about credit cards.

As the economy slows and unemployment rises, consumers are defaulting on credit-card payments more often. And though that trend is unlikely to create a crisis in line with the mortgage fallout, it's still a headache for banks that are already hurting.

Posted in Economy/Trade, financial crisis