Consumers resolve to change credit card habits
Posted
Dec 26 2008, 02:41 PM
by
Karen Datko
Rating:
This post comes from Mark Huffman at partner blog ConsumerAffairs.com.
Credit card companies appear to be tightening policies and reducing the amount of credit to some consumers, and consumers apparently think that's just fine.
A new poll by Bankrate Inc. found that 40% of consumers say they would not be upset if their credit lines disappeared. In fact, of the respondents who have credit cards, nearly one-third say they will probably charge less in 2009.
A much smaller group -- only 5% -- responded that they would be devastated by the loss of access to their credit cards. The poll is included in this month's segment of Bankrate's "Financial Literacy" series, "Becoming credit savvy."
Consumers also weighed in on credit card company terms and regulations, and taxpayer bailouts to consumers in credit card debt. Key poll findings include:
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Most people (72%) emphatically disagree that credit card companies are entitled to change the terms of your account at any time for any reason, and nearly the same number (71%) strongly believe that credit card companies should be more closely regulated.
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Two-thirds of Americans say they strongly disagree that taxpayers should bail out consumers who find themselves in a big financial bind due to credit card debt.
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Only 6% of Americans report that their line of credit was decreased, 44% say their line was unchanged, and 41% say their line was increased.
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Nearly one-third (32%) of respondents say they will probably charge less next year, while half say they won't change their usage. Only 1% plan to charge more, and 15% say they don't plan on using credit cards at all in 2009.
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When asked to pick the single biggest reason they use credit cards, 40% say it is more convenient than paying with cash, and 19% say they use them to finance emergency expenses.
Related articles:
A credit card is not an emergency fund
Credit card rates, fees marching up
3 steps back to the sanity of cash
Feds ban 'unfair' credit card rules
