Possible 2009 Credit Card Meltdown
The financial crisis has only just begun for some families. Last year, we saw the mortgage crisis send the United States into a recession. Coupled with high gas prices and tightening credit Thunderball many families were forced to use credit cards in order to survive the big jumps in the cost G I Joe Adventure Team living with the hope that fuel prices would return to reasonable levels. For those individuals who, for whatever reason, were already stretched financially, credit cards became a life line of survival through the tough months in 2008. In 2009, gas prices have been significantly lower which would seem to ease the burden upon the financially strapped. The truth is that now, coupled with high Action Man rates, these new debts have the potential to drown any hope of a quick rebound from the recession.
If gas prices climb once more, these new debts upon the wallet of the American people have the potential to cause financial devastation. There will not be a bailout for tax payers. If this economy is to avoid collapse, it will do so only from the hard work and efforts of the American public. By adjusting their spending habits and working when a job presents itself, the public has the Aurora Frankenstein model to turn this recession on its ear by paying off debt when possible. By reducing personal debt, more disposal income will be available. Then, with more cash available, consumers will again drive this economy forward. There are roadblocks to this possibility and one of those is the high interest rates charged by the banks on credit card debt. If banks could lower this interest, the debts could shrink faster and the recovery of the economy will be quicker. All of this can occur if the public demands it to be. If not, the year of 2009 could be the year of the great credit card collapse.
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