photo by Grundlepuck
In case you were busy watching OJ Simpson stammer his way to jail or Brittany Spears attempting her comeback, you may have missed the news that the Credit Card industry is said to be pulling back $2 trillion dollars worth of credit lines in the not too distant future. This move alone is going to have a drastic effect on the short-term future of the economy and is certainly going to hit home for people trying to make it between jobs. Let’s all face it, we are going to have to learn how to live without credit cards for awhile.
Here is how the Credit Card Industry will consolidate:
- They will close accounts: Which means, if you have not used a card for a few months or are using it as a security blanket they most likely will pull that card right out from under you.
- They will shrink existing lines: Say goodbye to that $2,000 cushion you have.
- They will raise interest rates: Either to dissuade you from using the card or to stick it to the people that actually pay on time; which is their business model to begin with.
What can I do?
- Not a damn thing. Their contracts are “iron clad”.
- Contact your Government Officials. Express to them that these are unfair practices. Until enough people get mad enough, the geniuses in Washington will continue to let them get away with this.
- Stop depending on credit cards (Easy to say!).
The credit card companies have painted themselves into a corner at this point. They will look to rebound by taking the steps given above, but that won’t be enough for the money grubbers on Wall Street. They will look for other means to increase profits and that means you, Joe Debtor, who hasn’t paid in 6 months. If you thought they were harassing you before, you haven’t seen nothing yet.
4 Comments until now.
While it may be more painful for some, those of us who refused to EVER carry over a balance on a card don’t care. I use my cards freely and pay the balances every month.
It’s not so difficult to stop relying on credit cards. Most people use credit cards on impulse items that accumulate over time. At least, that’s how I’ve witnessed it.
I have no credit card debt. The only thing about this that bothers me is that my credit card could be slid out from under me, as I only plan to use it in case of an emergency.
But hey, go and get a personal loan out instead for those sudden emergencies. Lower interest rate!
Thanks, for stopping by.
That is true many credit card purchases are impulse items. However, personal loans are little harder to come by especially for someone in a hardship scenario.
Glad to see you have no debt but you have to remember you are the exception not the norm.
Why can’t I get this kind of news on TV? Oh that’s right it would scare the daylights out of people.
Comment!