The credit card industry has taken a hit but that's largely due to their risky lending habits. I've heard people say to me " I've never had a late payment but yet they raised my rates." Well of course, they'll raise your rates because they know you care about making your payments on time and keeping your credit rating above 700.
I mean, the borrowing habits of the upper middle class is ridiculous. People extend themselves on credit and hope that things turn out for them but in this market it's not been as rosy as it used to be and no one should count on it.
The cheese was moved but people are hemming and hawing instead of adjusting to the times. Make some changes to your way of life.
The banks are going to keep making money, as we've seen, they can't allow the big conglomerates to collapse or the effects are going to be damning to the economy worldwide.
So here's what you the individual are supposed to do to protect yourself:
1. Adjust the debt to income ratio, if you're carrying debt from the last 5 years or more and have no real plan of how to get rid of it in the next 5 years, contact a reputable debt management company to help you.
2. Quit borrowing money that you can't afford to pay back. If you could not afford to buy something with cash, what makes you think you'll be able to pay the bill when it comes.
3. Please for the love of God, do not borrow more money to pay off your debt.
4. If your business has been surviving on credit, it's better to cut your loss NOW or you'll be looking at Chapter 7, 11 or 13 depending on your level of commitment.
I have a lot more to say on this issue but for now, stew on this!
