Current Issues in Economics and Finance
Meet the New Borrowers
February 1999 Volume 5, Number 3
JEL classification: G21, E5

Authors: Sandra E. Black and Donald P. Morgan

Credit card lenders have been writing off loans at sharply higher rates since 1995, suggesting that riskier borrowers are acquiring credit cards. What makes the new borrowers riskier—even more than their personal characteristics and attitudes toward debt—is the fact that they carry higher debt burdens and work in occupations where income may be more cyclical.

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