The Credit Card Crunch

For the sake of satire: The Bat Credit Card / From deviantart.com

I came across this post from Huffington Post where Arianna Huffington discusses about the impending crunch in the credit cards – interest rates can be jacked up by these credit card companies. And why they do that for? Simple: To earn profit in your account.

Here is a snippet from her post:

It’s a particularly vicious economic circle: every day, Americans, faced with layoffs and tough economic times, are forced to use their credit cards to pay for essentials like food, housing, and medical care — the costs of which continue to escalate. But as their debt rises, they find it harder to keep up with their payments. When they don’t, banks, trying to offset losses in other areas, then turn around and hike interest rates and impose all manner of fees and penalties… all of which makes it even less likely consumers will be able to pay off their mounting debts.

Alarming? Yes. And pretty downright scary too. This can be an economic nightmare for America – the nation that is swimming in the pool of credits and debts. And not only that – it could fall out to the other parts of the world – especially to economies that are credit-dependent. WTF.

In relation to this, here are the stuff worth reading:

The Credit Card Debt Crisis: The Next Economic Domino

Credit Card Companies Gouge Huffposters