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Rising Rates Sounding Alarm Bells for Debt-Laden U.S. Consumers

  • Credit-card spending has surged 9.4% as delinquencies rise
  • Fewer U.S. consumers using ARMs than before financial crisis
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Marc Chandler, global head of currency strategy at Brown Brothers Harriman, discusses consumer debt.(Source: Bloomberg)

A healthy economy can be a dangerous thing.

Americans have a history of loading up on debt in good times, then paying dearly when the bills come due. Adding to the pain: A booming economy is often accompanied by rising interest rates, which make mortgages, credit cards and other debt much more expensive.