Current Issues in Economics and Finance
Bad Debt Rising
March 1997 Volume 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.

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