Yesterday I wrote about a little old hardware store that had noticed an increase in card purchases over cash. That’s not a good sign if people are using plastic more for routine things and especially in this environment of credit card issuers reducing credit limits, raising interest rates and closing cards.

You see, the credit card issuers are getting freaked out that more people are going to start using the cards when they can’t afford it. Shocking! I guess that’s okay when you can limp along and make the monthly minimum payments but otherwise it is a bad thing.

The credit card message has been “use the card, use the card, use the card” but that pendulum is swinging to “don’t use the card, don’t use the card, we’ll take that card”.

Apparently this trend is not limited to just the United States or just hardware stores. A story in India noted:

Usage of plastic money is increasing with times but at the same times it is also increasing the worries of credit card companies. In September 2008, the transactions done through credit cards went up by nearly 20% against the previous month. Normally this would be a reason to cheer for the card companies but presently it has become a cause of concern.

The credit card companies are worrying because they think that rising usage of credit card may also result in higher number of defaults among these users.

If all of this is true, which it is, retailers are going to be hating life this holiday season as credit card issuers start closing cards to avoid even higher losses. Without available cash or loose credit, consumers won’t be able to go overboard on holiday spending.

I’m thinking we need a joust between banks and retailers. Wouldn’t that be fun to watch?

Other Related Articles to Read

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• Is The Government’s Financial Bailout Going To Help You Get Out Of … – WebWire
• Sears, Home Depot May Lose 8% of Holiday Sales on Credit Limits
• As Economy Slows, Lenders Begin to Curb Credit Cards
• Rebecca And Her Husband Are Struggling to Keep The Business Going
• Business Noticing Increase in Credit Card Purchases. Not a Good Sign.
• Soon, Where You Shop Will Control Your Credit
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• Humor: US Solves Credit Crisis, Credit Cards
• Credit crisis hits even people not late on bills

Read the full article at GetOutOfDebt.org, click here: Expect Tidal Wave Of Limit Reductions and Credit Card Closures to Hit Before Christmas

The recent bailout of several major financial institutions by the United States government has raised concerns of a “credit crisis” in America. Borrowing money has certainly become a favorite pastime, with the US government alone in hock for over ten billion dollars. And with the average American owing more than $8,000 in credit card debt, paying everything back is going to take a while.

Fortunately, there are companies that can help reign in debt. That’s why, after hearing a commercial on the radio, President George W. Bush made a call to (555) BIG-DEBT, the number for the Big Debt Credit Counseling Service. Bush, along with Treasury Secretary Henry Paulson, members of the House Ways and Means Committee, and members of the Senate Budget Committee, met for four hours on Thursday with John Little, a senior counselor with Big Debt.

Henry Paulson, still under scrutiny for his handling of the federal budget, was pleased. “I don’t know why I hadn’t thought of calling them before,” Paulson said during a post-meeting press conference. “Big Debt told us about secret programs that credit card companies and banks don’t want you to know about. We were able to cut 200 billion in credit card debt right off the top. And with easy monthly terms, and an equivalent increase in middle-class taxes, we’ll have the full debt paid off ten years sooner.”

Humor: US Solves Credit Crisis, Credit Cards Gather.com, MA - 2 hours ago And with the average American owing more than $8000 in credit card debt , paying everything back is going to take a while. Fortunately, there are companies …

Click Here for Credit Card Debt Help

Source: Humor: US Solves Credit Crisis, Credit Cards

Other Related Articles to Read

• Sears, Home Depot May Lose 8% of Holiday Sales on Credit Limits
• Expect Tidal Wave Of Limit Reductions and Credit Card Closures to Hit Before Christmas
• Here’s some real financial advice you can really use: keep spending
• As Economy Slows, Lenders Begin to Curb Credit Cards
• Outrage Over Credit Cards with 222% APR
• In this economy, layaway is in vogue
• YOUR VIEW: Charles Merlis
• Debt collection lawsuits increase in Wisconsin
• Searching For a Debt Consolidation Loan or Credit Card Counseling Service
• Next big worry: Credit cards

Read the full article at GetOutOfDebt.org, click here: Humor: US Solves Credit Crisis, Credit Cards