The credit card crunch is on its way and will affect consumers spending habits.
Credit card companies are now in the process of reducing marketing strategies, cutting back on rewards and increasing their underwriting standards.
This means that it will be more difficult to get a credit card.
If you do get one, the benefits and credit limits may be reduced.
It will mean that the interest rate you pay on balances will be higher.
Some analysts have projected that the write off for credit card companies in the next 18 months will exceed $55 billion.
In the first half of 2008 over $21 billion has been written off as bad debt.
Card companies have reduced their number of mail out offers to levels they were in 2004.
They will look at credit limits and continue to lower the maximum amount you can charge.
Reward cards will be another casualty as card companies pare back the value of the perks.
Rates will probably go up and that means the interest you are paying on your card will increase.
For the average consumer this may or may not be a problem.
If you are in the process or even thinking about applying for a credit card, it would be wise to speed up that process.
If you are carrying a balance on your card, do the best you can to pay it off, the last thing you need is a higher interest rate.
If you have a reward card, cash in your points before the value of the reward goes down.
A balance transfer card may be a good solution right now to reduce your interest payment.
Many of these cards offer 0% on transfer balances.
Evaluate your particular situation and take the action that will keep you financially healthy.
Pay off balances or apply for a supplemental card today to best meet your needs.
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