It seems that it isn't bad enough that we are in a recession, it's not bad enough that this economic disaster is primarily being blamed on the bad lending arrangement between the banking and lending sectors, it isn't bad enough that major banking institutions are dropping off into bankruptcy and loosing millions of dollars.
So what do the major banks do? Well they started by lowering their prime rate, yes, that's good, but it was too good to be true because you will want to take a look at your next credit card statement that you hold with any major banking institution. It seems that instead of keeping credit card interest rates the same or god forbid lowering them, they have decided to increase the credit card interest rate and worse still increase it a further 5% if a credit card holder makes their payments too late.
The banks say that this is their attempt to try to control the now out of control consumers spending habits and massive amount of debt that they have accumulated.
Funny that they were not concerned about this before. Why do they take a sudden interest in consumers spending habits by trying to curb their spending habits?
What makes matters worse is that these very same banking institutions and other large corporations are receiving monumental financial help from their respective governments throughout the world. Why is it that consumers are not on the receiving end of some of that help and not being weeded out and penalized with higher interest rates instead?
It seems that this recession will get very nasty after all. Economists predict that we are heading into one of the worst recessions we have seen, equal to if not greater than the great depression of the 30's. Let us hope that this depression does not last as long as the first one. Business analysts suggest that we have at the very least, four years of really hard economic struggle from every major economic sector globally.
In terms of what you can do on a personal level to safeguard yourself from the financial crush is to curb spending. That is the most obvious one but also to review all of your credit cards and balances. See which card has the highest interest rate and pay that off as quickly as possible or transfer it to a card that has a lower interest rate.
And by all means, ensure that your payments are not late. With this hike of interest rate on credit cards with late payments, it will be too late by the time you receive your statement and will be near to impossible to get them to revert it back to the lower rate of interest.
In some ways, they are just waiting for you to miss a payment so they have an excuse to raise their interest rate. So be aware and be on time. Don't skip a payment and stay on top of all of your credit card spending.
It may be an economic battle zone in the world today but you can easily remain in control of your own financial affairs by staying on top of things.
Author Resource:-
This article was written by Shawn Wilson, a member of the customer support team at Datepad, where internet dating is always free. Datepad has a massive directory of informative dating articles along with a great list of dating site reviews on their dating blog.
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