Credit Card Crunch
Just read that the next credit crunch will be credit cards. Surprise, surprise! We live in a house of cards and the big bad wolf is ready to blow it down. It has started already with the subtle fine print in the monthly statement advising you of a change of terms. Unfortunately the explanation is unintelligible and probably should be taken to a lawyer. The problem with that is the lawyer wants a retainer and does not accept credit cards. Apparently somewhere in the fine print is a disclosure that the credit line is being reduced. This is a good move on the part of the credit card companies. Tighten up credit, customers will stop using credit cards, credit card companies will start losing billions, credit card companies will get billions in bailout money! Another problem for consumers is their credit score. In someones infinite wisdom it is tied to their line of credit. The lower the line of credit , the lower the credit score. The lower the credit score, the more unfavorable the terms for borrowing will be. Actually it should not really matter since lending institutions do not want to lend anymore. The United States has come up with earth shaking technological advances. Its creativity in financial packages has also been earth shaking. We could have done without the latter.