The Bend But Don't Break Mentality of Plastic

By Jorden Meltz

The recession has been a wake up call to all consumers and has lead almost everyone to reevaluate how they spend their money and what they spend it on. The pockets of consumers have not been the only ones gathering more lint than money lately, as credit card companies have been feeling the heat of the recession too. Borrowing fell by about $12 billion over the last month, and clearly has some credit companies worried. The troubled times have resulted in desperate measures such as rate increases and increased fees, as credit companies are looking to make up for the lost profit on those who are still resorting to their credit cards to make purchases. Bank of America, in an effort to not be associated with such actions, has announced they will not raise interest rates on the consumers who have credit cards issued by them, an announcement that gained widespread praise from Senate Banking Committee Chairman. With credit companies knowing that regulation will soon be passed restricting their formerly cash-cow like methods of driving revenues, they are trying to find new ways to ensure the credit industry, although it has fallen on hard times recently, manages to stay as one of the most preferable ways to make purchases. Whether it be through taking a more consumer friendly approach or through dropping rates, as long as they can continue to offer convenience and credit it seems people will be out using their credit cards.


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