Americans have record credit-card debt and banks are starting to sweat an uptick in default rates, reports Fortune’s Peter Gumbel. Why some fear this could be the next subprime. Credit card companies concerned about excessive debts being racked up by customers. You have been pre-approved to PANIC!

By Peter Gumbel, Fortune - October 30 2007

(Fortune Magazine) – This past summer’s subprime meltdown involved about $900 billion in now-suspect securitized debt, reckless lending, and consumers who buckled under the weight of loans they couldn’t afford. Now another link in the consumer debt chain - credit cards - is starting to show signs of strain. And the fear that the $915 billion in U.S. credit card debt (an uncannily similar figure) may blow up has major financial institutions like Citigroup, American Express, and Bank of America strapping on their Kevlar vests.

Last month, as banks reported their worst quarterly results since 2001, concerns about rising credit card delinquencies began to make their way onto earnings announcements alongside mentions of subprime woes.

SSgt Yatahey’s comments — Personally, I think credit cards are a necessary evil … I don’t own any credit cards and don’t want them — if I can’t pay cash for something, I simply don’t need it!

Here’s the new rules of the credit crunch