Bad Debt Rising

6 Pages Posted: 11 Jul 2007

See all articles by Donald P. Morgan

Donald P. Morgan

Federal Reserve Bank of New York

Ian Toll

affiliation not provided to SSRN

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

Morgan, Donald P. and Toll, Ian, Bad Debt Rising (March 1997). Current Issues in Economics and Finance, Vol. 3, No. 4, March 1997. Available at SSRN: or

Donald P. Morgan (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
Research Department
New York, NY 10045
United States
212-720-6573 (Phone)

Ian Toll

affiliation not provided to SSRN ( email )

No Address Available

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