Current Issues in Economics and Finance

Bad Debt Rising

March 1997Volume 3, Number 4
JEL classification: G21, E5

Authors: Donald P. Morgan and Ian Toll

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.

PDF full articlePDF 6 pages / 100 kb