Credit Cards and the Credit Crunch
June 24, 2009 by admin
“In tough economic times like these, reliance on credit cards tends to grow, as evidenced by the 7% annual rise in U.S. household credit card debt in May. But it’s in times like these that we should take more care than ever.This serves as a note to self. I am someone who at times has racked up credit-card debt. I always intend to pay off my balance in full every month, but there have been months when my debt has accrued. (Having good credit and very low interest rates has made this a less expensive proposition for me than for many others.)”
Source: Wall Street Journal
Editorial Notes: In tough times like these Australians may feel the need to head in the same direction as America by increasing credit card debt. With increases in job losses, the stock market crash and the increase in the cost of living one can be tempted to increase credit card expenditure to make ends meat. If you are using a credit card to compensate for hard times it is important that you pay off the outstanding balance monthly to avoid hefty interest rate repayments. If you are using a credit card with a high interest rate compare credit cards and move to a new low interest rate credit card. With balance transfer offers you can potentially move from a 20% interest rate to a 11% rate with 6 months at 0% to pay off your previous credit card balance. What do Australians need to do about the credit card situation? Do we rely to much on credit cards in Australia? How many people are still using credit cards that charge over a 20% interest rate?
