Bad Debt Rising
6 Pages Posted: 11 Jul 2007
Date Written: March 1997
Charge-offs on credit card loans are rising sharply. While many analysts blame this trend on an expanding supply of credit cards, a closer look reveals the importance of two demand factors - wealth and the share of the population at peak borrowing age - in explaining the increase in bad debt.
Keywords: credit cards, charge-offs, risk, life-style demand
JEL Classification: G21, E5
Suggested Citation: Suggested Citation