How to Cover Wall Street

Though the layperson may still not completely get just how the credit crunch could affect them, it could become pretty clear when it starts to affect his or her spending. A common denominator that is a staple in many people’s financial lives is credit cards. The economic crisis has already had adverse effects on the credit-card industry. You may have noticed fewer credit card offers in your mailbox, and fewer still with offers of zero-percent interest rates. This year, banks like HSBC and Citibank have cut their mailings by as much as half.

Also, your credit limits may start to decrease without your knowledge. Or, if you have a credit card that you  keep around for emergencies but has been rendered inactive, it may be canceled so the issuer can cut the cost of maintaining the account. These may seem like small changes, but they can hurt your credit score, so it’s a good idea to keep a close eye on your accounts these days. The Wall Street Journal reports how you can track what’s being done to your credit score.

This CBS News story outlines the changes that you will likely see happen in credit cards in the near future.

As the Wall Street Journal reports, there are also companies chomping at the bit to take advantage of people who already have loads of credit card debt, like Wally Bowman, a security guard in Ohio who paid a company $249 a month to settle his $15,000 of credit card debt. Unfortunately, the debt was never settled and instead increased to $20,000, forcing Mr. Bowman to file for bankruptcy.

As the crisis continues, keep an eye on your accounts and make sure they aren’t being changed without your knowledge, and read the fine print that comes with your statements. Knowledge is power, people! It’s your money.

Image courtesy of The Silver Penguin on Flickr.com.