In another sign that the real estate and consumer spending bubble has popped, there is a new startup in San Francisco that lets people pay their mortgages, auto loans, and education loans with a credit card. It’ll be interesting to see when this credit bubble pops in turn. With the mortgage market suffering and foreclosures rising, there has been an accompanying rise in credit card balances, as people use their credit cards to stay afloat. Letting people put mortgages these other loans onto their credit card merely piles up the credit card debt, all of which has astronomical interest rates. While the credit card companies love this due to the fees collected, I can’t help but feel this house of cards is going to fall down in the next year or two and cost credit card companies a bundle. I’d assume they get some of it back since they have paid off the legislatures to tighten bankruptcy laws in the last couple of years. However, there’s still gotta be some pain for them, and it may result in tighter credit for the rest of us.

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