Summary
The increase in foreclosures has taken its toll on other segments of the credit industry, as consumers prioritize their spending. "All loan products have been pretty slow," said Larry Capps, assistant vice president of the collections department at NuUnion Credit Union in Lansing, Mich., and Creditors International Committee member. "People just aren't comfortable with the economy right now and have money tied up elsewhere."
A common misconception amongst consumers is that the change in the value of homes has affected the number of delinquencies. "It just means your house is worth less," Capps explained. "It doesn't mean that you can't make your payments.""We often say to consumers, 'I know you want that house or that car, but you can't afford this,'" he said. "We don't want to send them into that spiral."See the full content of this document
Extract
The Foreclosure Ripple
The current housing-market slump has curtailed consumer spending and spiked nationwide foreclosures. According to the RealtyTrac U.S. Foreclosure Market Report, a total of 2,203,295 foreclosures were filed in 2007 alone, representing a 75 perc...
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