Target writes off 8.1% of its annualized credit card debt in March - BloggingStocks

Posted April 25th 2008 11:50AM by Filed under: , , , (NYSE: ) said this hebdomad that it wrote off 8.1% of its internal recognition card loans in March. In lawsuit you haven't heard, consumers are grappling with record gas prices, rising nutrient terms and the worst lodging marketplace in 25 years. As such, consumers are defaulting on more than than just mortgage debt from short-sighted loans.The second-largest discount retail merchant in the U.S. said that defaults from its ain consumer recognition line totaled $55.5 million for the calendar month of March alone. In February, Target's annualized recognition card balance write-off amount stood at 6.8%, which climbed to 8.1% inch March. It's been suggested that Target take a long, , and the topic come ups up every quarterly conference phone call when analysts go on to abrasion their caputs on why Target have such as visibleness to the recognition marketplace -- and the impairment of it throughout 2008.Target appears to also be in negotiation with (NYSE: ) to sell about one-half of its ain recognition card trading operations for about $4 billion, but there is nil concluding yet. mark also indicated that it had been talking with another possible suitor. In all, Target's recognition card trading operations are -- a ball the retail merchant would better utilize to construct new supplies and magnify share redemptions beyond past levels. However, gross from the retailer's recognition card trading operations is nil to sneezing at either. For example, the retail merchant saw net income of $532 million just from its recognition card trading operations along in the 4th one-fourth of 2007.