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Customers get credit-savvy
Let me admit, this piece of news made me very proud. Even as doomsayers are predicting the demise of America under a mountain of debt, credit card companies are discovering a very disturbing fact – the fact that all is not well with their business. Of course, there are more people using their credit cards for miscellaneous purchases than ever before. And the industry has managed to rope in young college-goers as well. So, what could be the reason for the worry among industry circles?
There is a very interesting phenomenon going on right now that is troubling credit card companies. Although Americans are deeper in debt than ever, they are paying off bigger portions of their monthly credit-card bills. And timely payment of bills is one thing card issuers don’t like. That’s because card issuers profit from interest on unpaid balances. In the past, when interest rates crept up, fewer cardholders could afford to pay down balances.
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Yeah, funny news no wonder. Honestly, speaking credit card is a very good thing but one's spending habit is the most dangerous thing. Americans are now becoming more matured in using credit cards that is a good thing. I feel sad for the card issuers.
Posted by: Razib Ahmed | Jun 7, 2006 12:23:34 PM
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