Thursday, May 21, 2009

The Credit Card Puzzle

How many good credit card deals are out there in the market?

With more than two hundred major credit card companies in existence (not counting those that have only several credit card packages) there is a myriad of credit card deals available to anyone with income and a social security number.

The economy is in shambles. People need their credit cards now more than ever since so many need flexible payment. Studies show that people who are now paying their groceries with their credit card. This is a sign of just how heavily they rely on it. But this is also a time when interest rates are at an all time high. This leads many to think that credit card companies are using this economic crisis as an opportunity to get more profit at the expense of the already burdened consumer.

What is the government doing about this?

The Government is trying to nip this problem right away before it grows out of proportion. The cumulative credit card debt in America is going up to such heights (2.5 trillion dollars this March). The Credit Card bill is scheduled to be signed by President Barack Obama in less than a week. This bill seeks to put an end to all the tricks some card companies use to dupe consumers. Hiding surprise fees in hard to understand terms and fine print, utilizing arbitrary rate increases, giving out credit cards to those under twenty one years old, failure to give proper notice before any rate increase – all of these are subject to banning. After this bill is passed, surely there should be a lot more credit cards with clear terms. Now whether these are good credit card deals or not is uncertain. There are fears that basic rates and fees might be increased, but at least they won’t be hidden anymore.

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