According to an article in the Market Watch, credit card consumers are launching a massive, but silent revolt against credit card companies in response to higher interest rates, outrageous fees and unwarranted cuts to their credit limits.
The article said:
“…consumers cut $11.98 billion in borrowing in August, trimming their outstanding debt to $2.46 trillion, representing a 5.8% annual rate of decline and deeper than economists had expected. Credit-card debt dropped the most, falling 13.1%, or $9.91 billion, to $899.41 billion. It was the 11th uninterrupted month of declines, the longest on record.”
As if credit card consumers didn’t have enough reasons to cut back on their credit card usage with a 9.8% unemployment rate, credit card company price gouging has sent them over the edge. According to a Consumer Reports survey, nearly 32 percent of credit card consumers surveyed said that they had closed their credit card account in the last 18 months.
Fifty percent of them closed their credit card accounts because they were upset when credit-card issuers cut limits, hiked interest rates, jacked up fees or imposed new charges. Credit card usage has dropped so low that debit card transactions, for the first time ever, has exceeded the number of credit card transactions according to one study. Just fifteen years ago, debit cards made up only 1% of electronic transactions; but some analysts predict that debit card transactions will make up 56% of electronic transactions by 2015.
That’s news that has some banks scurrying to find a way to bilk customers during debit card transactions, so be on the look out to changes to your debit card agreement. Expect ATM fees to increase, new fees for over-the-counter debit card use and even inactivity fees. The banks apparently will stop at nothing to get your money.