Story of credit card: part1

In the past, credit cards are new for many people but continuously evolving. The major laws protecting consumers’ rights involving credit were passed in the mid seventies. In the early 1980s. High interest rates, but the credit card industry started to burst. By the mid-1980s, the volume of credit cards issued was break down because high competitive in industry. Banks that wanted catch market share began offering the best deal to consumers for induce them to become their customers. Although the market for credit was growing, most people were using the card as a convenience rather than as loans. Many people can paid their balance each month at full amount so banks get a little money from credit business. Every bank knows that the best customer for credit industry is one who pays the minimum each month and on time.

According to The Nilson Report, credit card debt hit $273.4 billion in 1992 and is expected to rise to $436 billion in 2001. Credit card debt is rising rapidly and banks are looking for their market share so led this industry to high competitive. It is now more important than ever to find an approach for debt management. This is especially true for people living from paycheck-to-paycheck who must dip into their credit sources to make ends meet. United States is quickly becoming a nation of debtors with the average credit card hold per people is almost ten cards! The people who plan their credit spending and can repayment in the full are offered with extended credit limit and better rates. But the others who can not meet their payment have very few options available since banks have already known their bad credit history.

Having debt not only cause a financial trouble but it also give you a tension. The most things of arguments, and divorce, or married couples are money. No money, having debt, also have family conflicts.

Continue reading part 2 Story of credit card: part2