Credit Lines

The Credit Card Responsibility and Disclosure act was passed last spring, but some of its provisions were delayed in taking effect, so the full law didn't really take hold until a few weeks ago. This had the result of giving the banks extra time to squeeze whatever the could from their cardholders. A recent article in the Press of Atlantic City took a look at what's happened in the past 12 months to credit card holders, and it's not pretty.

A year ago, the average credit card rate was under 12 percent. Six months ago, it was at 12.1 percent. Now it's 14.4 percent, the highest it's been in five years, even as interest rates overall are the lowest in recent memory. The average for cardholders with inferior credit ratings is a whopping 21.1 percent, up from 14.3 percent six months ago.

Even so, less than half of all consumers say they're using cash more often these days. That may be a sign of the times, and of this treacherous economy that has left many people without a lot of cash on hand.

More than ever, the important thing is to stay apprised of your situation. If a credit card issuer raises your rates beyond what you think is fair, your best weapon is also the simplest: stop using it.