So everyone’s practically pissed off at what happened to the economy. People are still losing jobs. Houses are still getting foreclosed. The average Joe is struggling to keep up even with living expenses. Amidst all this, there’s the issue of credit.
It has been an age-old sage-like advise from personal finance experts – one credit card is all you need. But not for us. Just take a look at your wallet and see how many cards you own. And we probably don’t even have to ask how much debt you currently have from these cards alone.
Some Asian countries whose citizens mostly relied on cash for their living expenses and purchases have managed to stay afloat. Mostly because of that. Americans (and other European nations) spend money they don’t have.
Credit card companies have been quite sneaky in making money from their customers. Many have seen their card providers sneak in rate bumps without any warning. Card companies argue that they need to boost earnings to keep themselves afloat. But at what cost? More burden for the already drowning Average Joe?
A new credit card law will seek to address that. Some provisions like rate hike protection go in effect this August but that doesn’t stop companies from jacking up the rate now. And they are. Interestingly, why is American Express the Dow’s best performer this year?
I think that is great news, I think people sign up for credit cards because they see a great deal but don’t realise the long term cost and think that they can make money to cover it. Banks are always looking to make money all the time but at what cost to the economy.