So it seems, otherwise it would have been mentioned in an article that discussed rising default rates on consumer debt. The article correctly notes that unemployment is highly correlated with delinquencies and default. That's of course true, but an important part of the story is the loss of home equity due to plunging house prices. People who have equity in their homes will rarely default on credit card debt or other forms of consumer credit since they have the option to borrow against this equity. Now that tens of millions of homeowners no longer have the option to borrow against their homes, they are far more likely to default if they lose their job or have a serious health problem.
--Dean Baker
