The Consumer Credit Crunch

This is alarming for two reasons. Obviously, banking institutions are reducing risk at an accelerated rate.

Immediately, though, my speculation is that something sinister is afoot. When a credit card exceeds its limit, the lender imposes a monthly fee.

This begs the question: if borrowers do not immediately reduce the credit to the newly reduced limit, are they going to have to deal with monthly "over the limit" fees?

If so, then this reduction will likely be viewed as an attempt to produce revenue. Is there a trend? Are credit card limits suddenly being imposed on those with mortgage loans?

My previously free personal checking account was suddenly charged a monthly maintenance fee last month. I viewed it as a money grab by my bank. It's nominal...but I'm keeping more cash on hand these days ;-)

That's an interesting point, rhojo, but I'd think it would be incredibly indefensible. That said, how many people actually look - I mean really look - at their credit card statements?

-Julia
Julia Schrenkler, Interactive Producer MPR | APM