The Philadelphia Enquirer has the story in “Advanta moves up card-freeze date“.

This article begs the question, what does a credit card company do when the default rate climbs so high that being in the business costs more money than it takes to stay in business? How many borrowers of the 79.85 percent who have not defaulted will default now that their credit card company offers no services? In this case, the article notes, “The company hopes customers will pay off their balances, but it is not clear what business Advanta will have after that.”

Losses Of Canadian Credit Card Firms Forecast To Hit $800 Million

Target credit card delinquencies up 4 percent in December

US credit card delinquencies at record highs -Fitch

You may have heard it in passing. The comments were similar to, “home owners are maxing their credit cards to pay for basic necessities like food and clothing.” Or maybe you’ve heard the astounding statistics about the number of credit cards the typical person has and the average credit card debt they carry on their cards.

While it hasn’t received as much attention (yet) as the housing bubble and the current credit crunch, you’ll hear more and more about the credit card bubble in the coming years. And it won’t be good news.

Now that lenders are tightening requirements for home owners who wish to get home equity lines of credit (HELOC) or home equity loans, more people will be turning to credit cards for cash.

It won’t be pretty for many.

The Credit Card Bubble Blog at http://www.creditcardbubble.com is a place to consider the impact of the credit card bubble on individuals and the economy. So jump in! Share your thoughts, ideas, tips and forecasts. It’s likely to be down hill from here for a while ..