subject: Slower Credit Card Industry [print this page] Slower Credit Card Industry Slower Credit Card Industry
Bright Spots?
One of the brighter signs of the credit industry must be taken with a grain of salt as loan write-offs can be seen as a rise in the economy but are normally fueled by tax refund checks. It is the same old story across the United States of America as the economy grinds right along and takes with it the credit industry for the ride.
Keeping an Eye on the Ball
The card holders of the United States keep an eye on the rate that issue or are such as they use their credit cards more. They are in tune with the pulse of the credit industry and noted that the more individuals use their credit cards the more the companies earn by way of fees, so the amount United States customers spend is critical. Another sure sign of a stagnated economy is the amount of the present day Card-loan balances. What this barometer dictates is that as companies continue the downfall and the free falling kind can use across the United States the card companies continue to scale back on offering credit and this is not helped by the talking up of the lending practices by the political parties in power it in the United States of America.
Federal Reserve
According to the Federal Reserve, revolving credit lines fell by a whopping $5 billion in August from July and have continued to fall since the end of 2008. The total amount of loss by the credit card issuers for the upcoming 2011 year is somewhere around $830 billion dollars. While that may seem a very incredible amount of money it is a drop of about 25% going back to October of 2008.
Tied Together
The credit card industry is essentially tied to the growth of the heat on me in the United States of America. There can be no rise in credit card spending if the economy in general and as a whole is stagnated with little or no growth. What needs to happen is for the federal government to lighten the reins on the litigation that is now seen as a detriment to the credit card issuer and industry. That is one way to lift an economy out of the abyss of stagnation and two get things back on you wouldn't feel as soon as the last quarter of 2011.
