Meredith Whitney states that the banks are going to cut credit card limits by 55% in the months ahead.
This means two things for us: we're prime candidates to lose credit access, perhaps altogether -- and our customers may find themselves going over limit much more often.
BTW, the banks are hitting card users with draconian fees and rates upon the slightest 'infraction.' For example, one guy had his 6% rate bumped up to 36% because he was two days late! Further, most banks have boiler plate in their terms that allows them to jump up their rates if you trip up your credit at a DIFFERENT bank!
BTW, the credit card industry is seeing record charge-offs and unemployment is still rising at a rate of 750,000 per month!
Consequently it is to be expected that our vendors will be pulling in their horns. If you want your supplier to stay alive it may be necessary to pay them even quicker -- and get better pricing for yourself.
