Credit Crunch for Consumers
June 24, 2009 by admin
As credit card issuers raise rates and fees and lower credit limits, consumers face higher-cost debt — and more work maintaining their credit score. In some cases, banks’ former darlings — consumers who paid consistently and on time but let their balances ride — now are being hit hardest, asked to stomach higher interest rates and fees or try their luck with different card issuers. For instance, some J.P. Morgan Chase & Co. credit-card customers who have carried a balance for more than two years will be charged a $10 monthly fee starting in January and their minimum payment will rise to 5% from 2%. “
source -Wall Street journal
The above shows how the credit crisis in America is effecting the average person. What do you think about the banks lowering credit card limits? How would this effect you if Australian banks lowered your credit card limit? Would this further the struggles of your day to day living or is this a step in the right direction in getting over the world credit crisis?
