According to this video, Sears Mastercard and other credit card companies are imposing pretty restrictive new credit card rules. They are also cutting credit limits …Even at the expense of offending good customers.
In this credit market, the companies are just trying to protect themselves from defaults on credit card debt.
This is a problem that was bound to come home to roost eventually because Americans are falling deeper and deeper in debt.
The average consumer carries over $16000 dollars of credit card debt on numerous cards.
Consumer debt has increased 75% over the last decade while wages have only increased a meager 4%.
Some of the restrictive rules Credit card companies are imposing in order to limit exposure to risk are: raising interest rates, not taking new customers, reducing credit limits, and closing dormant accounts.
Minimizing risk has become the priority and card companies are willing to punish their good customers who have always paid on time by imposing these new rules.
Americans are all paying for this credit crisis in one way or another.