Double bind of increasing debt and falling equity

In effect, the minimum payment option means that the scale of the homeowner's debt is increasing each month (which becomes a double bind when house prices start to fall).

RELATED ARTICLESExplain
The Global Financial Crisis
Potential consequences of the financial crisis?
More financial institutions will collapse
Financial institutions will suffer further capital losses
Financial institutions forced to write off bad debts
Many homeowners will default on mortgage and loans
Wave of option adjustable rate mortgage deafults to come
Big monthly payment increases when Option ARMs reset
Double bind of increasing debt and falling equity
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