October 30th, 2008 by Reed Allmand 
As the eroding economy squeezes credit crunched consumers, credit card lenders are pulling back the amount of credit offered, even to the most creditworthy. With over $21 billion in bad credit card loans in the first half of 2008, credit card lenders are laying off thousands of workers as the industry is predicted to lose over $55 billion in the next 18 months, according to a Dallas Daily News article. According to analysts, current losses which amount to 5.5% of credit card debt could surpass the 7.9% of losses sustained during the implosion of the technology bubble in 2001.
This is bad news for many Americans who rely heavily upon credit cards to pay for everyday purchases. For consumers who have leaned on easy credit to stretch their budgets as rising housing costs have taken a bite out of their wallet, a contraction of credit may be fatal to their financial outlook. More and more Americans may need to consider bankruptcy as the credit card lenders not only limit offers; but reduce existing customer’s credit lines.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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