Debt bubble about to burst
Jim Jubak, at MSN MoneyCentral is no alarmist. But he’s concerned about the debt bubble. Here’ some of the reasons why.
In the first quarter of 2004, 53% of all mortgages were adjustable rate. When rates rise, as they will this year, then suddenly mortgages get more expensive.
Credit cards are easy to get now. If you run up a bill too high on one card, wait a bit, then find another with cheaper rates. When rates rise, all that goes away. Because, you see, credit card interest rates float, when interest rates go up, so do they.