The Internet is all abuzz about congress passing credit card reform. Some writers are saying it is a long needed reform and will help individuals. Others are saying that it will just end up being good card holders subsidizing less than stellar card holders.
Frankly, I am probably in the middle. I do think some of the reform ideas were good, but there are always unintended consequences. My one credit card company has already changed their point system downward and has added an annual fee (prior blog on 5/14/09). I expect more of the same from other companies – they will find ways to make money! With defaults rising and the rules of the game changing, I think the days of cashback and no fees may be numbered.
If my other cards start to add fees, or as some commentators have suggested give no grace period (interest begins immediately), then I will probably switch to using a debit card. I keep very little money in my checking account, so the risk is limited. It will mean that I will have to keep a closer eye on my balance, but that is better than paying interest or fees. And right now, my debit card has its own little reward program for usage.
I will probably not carry any more cash than I do now – which is little to none. I will probably begin to carry a check or two in my wallet. We use duplicate checks, so I don’t have to write anything down.
It will be interesting to see how things play out. What do you think?
