As policymakers are fighting with the global financial crisis, some attention is being diverted towards more personal financial issue: credit card debt.
Large levels of credit-card debt have been carried by the Individuals, too expensive houses and gas-guzzling cars also constitute one element of people living beyond their means. Nowadays the amount of credit-card debt has been reduced by the banks; simultaneously the individuals have put all their efforts in saving. Both these scenarios have resulted in a reduction in consumer spending, which creates difficulty in making an economic recovery.
Analyst Meredith Whitney, has recently written in The Wall Street Journal, she notify that banks have reduced available credit-card lines by “nearly $500 billion” in the fourth quarter, 2008. It was estimated by her that in 2009 more than $2 trillion of credit-card lines will be cut off.
