Debt Consolidation Credit Counseling In Phoenix

The gloomy financial forecast for 2009 shows no sign of improving, if reports in the media are to be believed. Financial institutions are decidedly nervous going into the New Year. The latest Bank of England interest rate cut to the lowest in its 315 year history seems to have had little effect on calming monetary nerves and all reports indicate that the sun has finally set on the era of easy credit. However, consumers still want credit, and they want it at a good rate " preferably 0% for at least the first few months. Credit card companies are worried about exposing themselves to further potential bad debt, so are there still low rate cards available to those with the credit rating and the desire to keep spending on plastic?

The number of advertisements promoting 0% offers has dropped sharply this year. In comparison to 2008, when the present economic crisis was still an unseen storm on the horizon, there has been very little in the way of New Year, new card promotions, even from the larger providers. This absence of new deals has been noticed not just by the public but by financial watchers as well. The financial organisation Credit Action agree with the evidence and say that credit in general and low rate credit cards in particular are in short supply. They also found that where credit was available it was often more expensive than before. The pundits all agree " the banks are tightening their belts and their credit criteria.

However, the popularity of credit cards remains unabated and consumers are still on the lookout for a credit bargain. Director of Credit Action Chris Tapp has commented on this, explaining that credit cards are an integral part of modern consumer money management for the public and a very normalised part of the way consumers manage and borrow their money. It looks like it is going to be very difficult to persuade a public that has grown so used to using plastic on a daily basis to change to a different system any time soon. The advent of online shopping and auction sites such as Ebay has also prompted an increase in the use of credit cards, as transactions online are almost exclusively credit card based. The combination of a public in love with credit and a shift in how we shop confirms that credit cards still have a special place in the nations wallets.

There are still bargains to be had, despite all the gloom and doom. 0% balance transfer cards are still relatively plentiful and special offers on purchases are quite common as well. The 0% grace periods on purchases tend to be much shorter than those for balance transfers and once these special offers end the APR can climb rapidly. This can prompt an unseemly scramble as customers desert their cards in search of a 0% balance transfer to save money. However, frequent card-jumping can quickly damage your credit rating and reduce the chances of further credit. This year, cards are looking for customer loyalty and are changing their tact accordingly. In the coming months we may start to see a groundshift in policy amongst card providers, where cards incur interest charges earlier, but those charges are kept lower to keep customers from seeking solace in a quick-fix 0% temptation.

Rather than chasing illusive 0% deals, 2009 credit card customers would be better placed to accept that, along with death and taxes, credit card interest payments are inevitable and look for the best deals they can find. This includes not only the APR of the card, but any additional fees that a customer may incur such as insurance, handling fees, late payment charges and other hidden extras. The consumer has to realize that the days of free and easy lending are over and has to adjust their expectations accordingly. After all; if businesses have to bend to the financial wind, so do consumers.

The Internet has its part to play in the brave new credit card world, and online comparison sites are coming into their own. They give the smart consumer a chance to make an informed decision before they leap blindly into the offer that seems to promise the most financial bling but may have a hidden sting in its tail once the honeymoon period is over. Credit card companies are realizing that there is a groundshift in the marketplace and that, despite the dire financial warnings issued almost daily, the consumer is very much in charge this time around. There are still low rate credit cards to be had, but it all has to be part of a much more symbiotic relationship between customers and credit card companies.