Credit Card Free Fall
ADOTAS — The Internet will end as we know it if no one can or will buy on their credit cards.
As the goverment tries to jumpstart mortgages, it also wants to help consumers’ credit spending. According to the Wall Street Journal, economists believe credit card spending fell at an one percent annualized rate from September. On Friday, the Fed will release October consumer-credit data. Charging has held stable because consumers have been using it for day-to-day purchases. That will likely end.
According to the WSJ, J.P. Morgan Chase economists expect savings to rise in 2009 to more than five percent of disposable income from roughly zero (!) percent at the 2008.
But banks, even ones that have sucked up bailout dollars, are cutting credit limits, raising rates and fees and suspending offers such as no-interest balance transfers. They are also reducing reward programs and shutting down inactive accounts. If the government doesn’t push that trend to reverse, it could find consumer credit tanking. That would obviously hurt the economy and online spending.
— Express your opinion, comment below.
Reader Comments.
Unfortunately, the government never reacts until after the fact. So I wouldn’t expect anything in the near future.
I would think this is a good thing. People (including the government) shouldn’t be spending money they don’t have. And if they do, only for the big ticket items like a house or car or in an emergency. I personally only charge on my card if I know I can pay it off completely the next bill. It’s called living within your means, as in not buying stuff you don’t need. It seems hard for people to do, especially in our materialistic culture, but it is possible.
- Pingback from Online buying not just a card game » Adotas
Leave a Comment
Article Sponsor
More News
-
Loading ...
Latest News
- Funding in Brief: $10M for Spongecell, $8M for Prolexic February 9th 2012 ADOTAS – Rich media ad company Spongecell has raised $10 million [...] more »
- Google AdMob Axes Minimum Bids, Targeting Fees February 9th 2012 ADOTAS - As of Feb. 15, Google will change its [...] more »
- Infographic: HootSuite Analyses Social Media Impact of Super Bowl Ads February 7th 2012 ADOTAS - So, it’s the Tuesday after the Super Bowl, [...] more »
- Facebook to Serve Mobile Ads in Coming Weeks February 6th 2012 ADOTAS – According to a Financial Times report, Facebook will [...] more »
- Survey: 39 Percent of Mobile Users Responded to Super Bowl Ads Via Mobile February 6th 2012 ADOTAS - During the Super Bowl yesterday, mobile ad network [...] more »
- Sponsormob Leads the Way Into RTB for Mobile February 3rd 2012 ADOTAS – For more than half a decade, Berlin-based tech [...] more »
- Weird Study: Mobile Purchasing While in the Bathroom on the Rise February 3rd 2012 DM CONFIDENTIAL - According to 11mark, three-quarters of Americans with mobile [...] more »
Features
- Attribution Online: Introducers and Influencers and Closers… Oh My! February 9th 2012
- With gTLDs, Global Branding Starts with a Name February 9th 2012
- Rethinking the Online Advertising Ecosystem, Part One: Independent Publishers February 8th 2012
- Case Study: Social Ad Effectiveness February 8th 2012
- Video: “Build an SEO Foundation” Excerpt February 8th 2012
Spotlight
Sponsormob Leads the Way Into RTB for MobileADOTAS – For more than half a decade, Berlin-based tech firm Sponsormob has remained relevant in an industry characterized by [...] more...
Reader Favorites
Classifieds
- PS Technical Writer - SEO Data Analyst
- Interactive Project Manager
- Media Buyer
- PHP Software Engineer (Facebook Platform/Social AP
- SEO/Marketing Internship at Green Education Startu
Recent Comments
- With gTLDs, Global Branding Starts with a Name – ADOTAS | ShopComs.com: [...] With gTLDs, Global Branding Starts with a NameADOTASADOTAS – It's no longer important how
- Domain Outlook : Latest Domain News » Blog Archive » With gTLDs, Global Branding Starts with a Name - ADOTAS: [...] With gTLDs, Global Branding Starts with a NameADOTASADOTAS – It's no longer important how
- With gTLDs, Global Branding Starts with a Name: [...] and Microsoft have little to worry about over names like UnitedThis and UnitedThat. The
- ReTargeter » Attacking Bad Banners: Inaugural Edition: [...] between 0.01% to 0.1%. Even with retargeted ads, which tend to have clickthrough rates
