The global recession has certainly hit the global industry –and has hit it really hard. This is precisely why credit card companies are actually passing much of the financial burden they shoulder onto their customers. And this is precisely why if you have a credit card of your own, you should be aware of the existing situation and do your best to avoid using plastic for now. Bad loans and the increasing rate of unemployment have certainly made it all the more difficult to deal with credit cards for virtually all banks in the industry.
Because there are just so many people defaulting their loans, banks are now passing on that financial burden on you, the consumer. At present, banks have actually passed on close to 8.5% of their financial burden on to their customers who still have strong paying abilities. Moreover, banks are now doing all that they can to make up for their losses. You just might have experienced some of these attempts as well. For now, banks have resorted to increasing their interest rates, reducing the credit limits of their customers, and even closing down the accounts of their customers entirely.
If you are beginning to notice any of these attempts being implemented on your credit account, then you should contact your financial advisor or lending institution right away. After all, as a paying customer, you do have your rights that you should exercise to protect yourself. Yes, there are new rules to be implemented regarding the limitation of rate increases. However, these rules will not be implemented until 2010, and it is impractical to wait that long.
So, what should you do then? Take the initiative! Be frugal, first and foremost. Do not resort to using plastic at just any given time. As much as possible, prepare enough money for all the expenses that you have to take care of – rent, groceries, utility bills, and the like. Prepare a budget plan so that you will see for yourself where your money comes from and where it goes – and stick to that plan! The economy has certainly taken a turn for the worse and you should not just wait for it to alleviate somehow.
But if you are unfortunately at the losing end – meaning you are one of the people who have defaulted, do not fret just yet. Yes, there is still hope for you. There are actually credit cards for bad credit that you can sign up for, you know. Now, you may be asking yourself, just what good would these bad credit credit cards do for me? Wouldn’t signing up for them just worsen my situation? Yes, these are indeed worthy questions to ask.
Still, you have to remember that even if credit cards for people with bad credit are available, it would still be better to practice frugality. Do not wait for the new laws to be implemented – take the initiative and spend your money wisely.