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Credit Card Crisis in the US: Survival Tips

Forbes stated in a report that “While the economy tumbles and the government rushes to help stop the housing crisis, another danger is lurking - in your wallet.”

Credit cards, according to Forbes, “are shaping up to be the next chapter in the financial meltdown, promising to stymie consumer spending, drag on the economy and force a whole new wave of financial difficulty on Americans.”

To help yourself from getting into credit card problems, it was advised by experts like Liz Moyer that you do the following:

• To combat the risks, major lenders like Bank of America (nyse: BAC - news - people ), Citigroup (nyse: C - news - people ) and American Express (nyse: AXP - news - people ) are raising rates on existing balances and slashing credit lines. Meredith Whitney, an analyst at Oppenheimer & Co., estimates banks will cancel $2 trillion of available consumer credit over the next year.
• There are some things you can do to help yourself. Experts advise reading the terms and conditions on your account statement every month, so you can pick up on any unexpected changes your card company slips into the fine print. Also critical: maintaining your credit rating at its current level, giving card issuers less ammunition to change your account terms.
• Another tip: Make sure you don’t use too much of your credit limit. Use no more than 30% to 40% of your available credit on one card and across all your cards. Going past that threshold is a trigger lenders to change terms. It can also dent your credit rating.

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