With the number of home mortgage defaults and foreclosures continuing to soar, and a ripple effect reverberating through the auto loan and credit card sector, we are witnessing some of the worst financial conditions for consumers in history. What will be the impact on credit scores, and on insurance prices set in part on that rating factor?

Did this credit crisis come about due to reckless borrowing by consumers? In some cases, yes. But the vast majority of those in financial distress are in that position because of reckless and abusive lending practices and a dramatic decline in home values across the country.

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