It’s tough all over — and not just in the United States. In India, where revolving credit is still relatively new, consumers are struggling under the weight of crushing consumer debt, according to a story in the Wall Street Journal this morning. But it’s not just Indian consumers who are suffering. The banks that handed out this easy money are being hammered as well. Indeed, card companies that lent money indiscriminately — to unqualified customers — are now paying the price. From the story: New Indian Middle Class Gets Caught In the Whirlwind of Revolving CreditMore people are turning up desperate for help with their credit-card payments, says V.N. Kulkarni, chief counselor at Mumbai’s Abhay Credit Counseling Center, which advises borrowers. Hundreds have been lining up at the center, dumbfounded by their debt and asking the most basic questions.”They are unaware of the charges, unaware of the interest rates,” Mr. Kulkarni says. “They just take the money because it is freely available.”Related Articles:In China, It’s Pay Your Credit Card Bill — or ElseWal-Mart de Mexico Plans 100,000 Credit Cards by Year-End — With Interest Rates of 59% to 75%The Next Bailout: Your Adult Children?
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