5월 7일 (목) Increase of Credit Card Delinquency

Increase of Credit Card Delinquency<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p>  <o:p></o:p>  <o:p></o:p> Credit card delinquents are likely to be rejected when they apply for jobs or new credit cards, the Ministry of Finance and Economy (MOFE) said Sunday. The ministry said that due to the rising number of delinquents who refuse to pay their debts, the MOFE would adopt a system in which those delinquents face disadvantages when applying for jobs or new cards. The MOFE said it would also open a database of personal credit ratings to companies or department stores, which would include the details about a person"s past debt payment history. Byeon Yang-ho, the director-general of the Financial Policy Bureau at the MOFE, said the rumor that the government would rescue all credit card delinquents is groundless. "People who intentionally don"t pay their debts will suffer ill treatment," he said. But some analysts have argued that the government"s policy would have adverse effects, saying that by restricting delinquents" job opportunities, the government would only make it harder for them to repay their debts. The government"s guidelines are also in contradiction with the Korea Federation of Banks" new plan to offer jobs to credit card delinquents to help them improve their financial standing. The heads of major banks, including the largest bank, Kookmin, decided during a meeting last week to take adverse measures against such delinquents. The measures include the banning of loan extensions and applying high interest rates to delinquents who refuse to pay their debts, while those who pay debts quickly are to be given preferential treatment, including low interest rates. Discussion Questions 1) When you buy something, which one do you usually use, credit card or cash? (Which do you prefer to use?) 2) What are advantages or disadvantages by using credit card? 3) Which kinds of person can be credit card delinquents? 4) What do you think about the main reason of increased number of credit card delinquents is? 5) What is your solution to decrease these delinquents? Do you agree with the government"s plan?<o:p></o:p>