What can happen to consumers in countries with weakening currencies encumbered with debt denominated in stronger currencies?

Some Hungarian Mortgages And Mortgage Payments Have Just Jumped 10%

...a significant number of Hungarians have historically taken out mortgages denominated in Swiss Francs. They liked the low interest rates those mortgages offered. Unfortunately over the last 6 months the Forint (Hungarian currency) has gone down against the Swiss Franc.

...In 2006 and 2007 80% - 90% of new mortgages were denominated in Swiss Francs...

...the Forint is trading...approximately 10% lower against the Swiss Franc since March. This means that all of those with Swiss Franc denominated mortgages suddenly owe approximately 10% more.

They suddenly have to make payments that are approximately 10% higher.

...Can you imagine what it would do to the US real estate market if an appreciable number of home owners suddenly found that they owed 10% more than they had a couple of months ago?

How would US citizens react if they had to make 10% higher payments in a high unemployment environment?

...Do you think the extra Hungarian real estate problems due to the Swiss Franc mortgage problems will help Hungary’s credit ratings?

David White