Credit cards: The next crisis?

A number of traders believe that households struggling to meet the soaring interest costs on their mortgage payments will use their credit cards to pay the debts in the short term. That could put credit card repayments under pressure alongside mortgage payments. If consumers begin to miss payments on credit cards, many of these CDOs could have their credit rating cut. Given that those CDOs have been used as collateral against other debts in the market, that could spark a fresh bout of contagion in the market.