American credit card debt is up more than eight percent from a year ago. That’s the highest amount ever recorded. In these tough economic times, it’s important to keep a close eye on your credit cards. Consumer Reports says some companies are doubling or even tripling their interest rates- and it’s not just happening to people with a bad credit rating.
John Carmichael says he always made his credit-card payments on time and had never had problems with his credit rating. But earlier this year, the interest on his Bank of America Visa card nearly tripled overnight. From around eight percent to nearly 25!
“To jump from a low rate to a high rate in one fell swoop, with no justification in something that I did wrong, I think is bad business,” says John Carmichael.
Bank of America says Carmichael had too much debt, even though his card balance was almost one thousand dollars below his limit. Carmichael speculates that banks are changing credit-card terms to compensate for their mortgage-related losses. Consumer Reports Chris Fichera says that’s possible.
Consumer Reports: Credit Card Caution KKTV 11 News, CO - 46 minutes ago American credit card debt is up more than eight percent from a year ago. That's the highest amount ever recorded. In these tough economic times, …Consumer Reports: Credit Card Caution by Steve Rhode