Just before the previews started at a showing of Slumdog Millionaire on Saturday night, my ear caught the two 40-something guys behind my wife and I talking about Bernard Madoff’s giant Ponzi scheme.
“That makes like 10 people we know who were caught up in this,” said one of the guys.
As I pretended to listen to what my wife was saying I focused on their conversation – hoping to hear a name I might know.
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.