Over the course of the past few weeks, several changes have occurred to many of the credit cards on our website along with the complete removal of others. The proverbial belt of available credit appears to be tightening even more as interest rates are raised, credit lines are trimmed and cards are eliminated all together. And all of this is happening just as we enter into the holiday season, the time of year where retailers offer great deals on merchandise and the demand for credit increases dramatically.

Despite all the changes and the reasons for those changes, there are still some really good credit cards available and even some issuers have improved their offers for holiday shoppers this season. If you’ve been thinking about applying for a credit card this holiday season, now is the time to do so. Several very competitive and industry stalwarts are still available that earn rewards, allow you to make purchases or balance transfers for an introductory 0% APR and help establish or rebuild credit.

The term “Black Friday” can be traced back to the 1960’s in Philadelphia (WikiPedia 2008) and did not carry the same connotation it carries now. Nowadays, “Black Friday” is still synonymous with long lines and traffics jams, but more importantly the amazing deals retailers offer us on electronics, clothing and other holiday merchandise. If you’re one of the few employees who still gets a Christmas or year-end bonus, taking advantage of the “Black Friday” deals may not always be practical with the timing of a bonus. However, taking advantage of an introductory 0% APR on purchases would allow you to enjoy the special pricing on the day after Thanksgiving for many of your gifts, pay no interest and pay off the balance with your bonus. You can also enjoy additional savings when using a reward credit card.

If your looking past the holidays in anticipation to the start of a new year and are looking to make a few New Years goals, like getting out of debt, then check out balance transfer offers. Bank of America has extended some of their balance transfer offers to 15 months for 0% APR and a low 3% transfer fee. For those with a balance still on their department store credit cards accruing 20 plus percent interest, check out card offers that offer lower rates on balance transfers for those with excellent, above average and good credit.

No matter what type of credit you have, there are still many offers to choose from. Making sure you act fast to save additional money on holiday purchases, saving money on existing balances or to rebuild your credit, there is a credit card offer available for every need. Remember this holiday season to read the full terms and conditions of each card and never over-extend yourself from your ability to repay your balance in full within a reasonable time if necessary.

Millions of consumers are defaulting on their credit cards. We aren’t talking about hundreds of dollars. We are talking about thousands and thousands of dollars of unpaid balances. Because so many credit card holders are defaulting, banks are being hit…hard.

Federal regulators have now entered the picture. They are being asked by financial and consumer advocated to let lenders significantly reduce the amount of debt owed by some consumers. Consumers that are in heavy debt are being considered to begin a special program. This program would help reduce their credit card debt by up to 40 percent.

The credit card debt forgiveness program is being pushed by the Financial Services Roundtable and the Consumer Federation of America. Both of these two organizations have pointed out how desperately urgent the situation is. America has hit an all-time high in credit card defaults (both the number of defaults and the monetary amount of these defaults). Banks and other financial institutions have been left scrambling.

So, what exactly is the proposition? How will this plan work? Consumers who aren’t able to qualify for current repayment plans and who are carrying extreme levels of debt. In a recent statement, the two groups said, “This proposal would make it financially feasible for credit card lenders to provide immediate financial assistant to American consumers who are carrying record levels of debt.”

Almost every major credit card institution has already agreed to begin a temporary program. This program would forgive up to 40 percent of the person’s debt. The remaining balance can be paid over time. Each institution would evaluate each case separately and the amount to be forgiven would be forgiven on a case-by-case basis. Those who qualify to have 40 percent of their debt forgiven would reach an almost personal bankruptcy status.

The plan is hoping to create a balance between the creditor and the consumer. “We are asking to provide guidance to lenders that will in turn offer relief and stability to consumers.” Is this the best thing for Americans in such a heavy recession? Should there be more counseling programs in place to prevent people from living so far out of their means? The Federal Reserve estimates that Americans are now enslaved to approximately $900 billion in credit card debt.

What is your opinion? What should be done to combat such rising credit card debt?

People everywhere are experiencing the “credit crunch.” Some people have been feeling the effects of the credit crunch for several months while others are just beginning to feel it. Credit card companies have begun to take drastic measures in determining someones credit worthiness.

Have you ever heard the adage “guilt by association?” American Express customers have now been linked into that category. American Express is now limiting cardholders’ freedom according to where they live, shop, etc.

Customers are completely outraged. American Express customers around the country have recently noticed lower limits and tighter restrictions. Some customers are now having to consider closing their businesses. Without the freedom to purchase products for their business, many people might have to close their doors.

American Express has sent letters to people with AmEx cards notifying them of the changes. These letters include several reasons why the changes have been implemented. Among these reasons are, “Our credit experience with customers who have made purchases at establishments where you have recently used your card.” Another reason has been, “Our analysis of the credit risk associated with customers who have residential loans from the creditor indicated in your credit report.”

This is the first time that such limits have been implemented, although rumors of such limitations have been around for quite some time. American Express is completely defending their position on the issue. AmEx has decided to monitor credit risks. This includes monitoring credit profiles, income, credit reports from all three credit bureaus, payment history, etc. However, the major credit card company is also considering factors that have recently arisen from the struggling economy.

It does seem surprising that a major credit card company is taking such drastic measures to monitor credit risks. The lack of credit risk monitoring is a major contributor to the current crisis facing our economy. However, restricting someones account because they shop at a particular store or have a loan with a particular lender seems a bit unethical.

A troubling economy has led to drastic measures being taken by everyone. What will this lead to next? This is certainly a major issue for a country that lives primarily on credit. Our country is being forced to learn how to live without credit, or at least as much credit.

It may seem counter-intuitive to what you may think is an economic textbook answer. With practically inevitable hard economic times ahead, most people’s natural reaction is to begin curbing their spending and to start hoarding cash. However, this behavior of spending less and saving more has a very negative impact and becomes nothing more than a self-fulfilling prophecy of economic hard times. The herd mentality puts jobs, even yours, and more at risk.

Being prudent with your money during hard economic times is important, but spending less will have an exponential effect on businesses, jobs and more. Businesses rely on revenue through sales to pay their employees, meet financial obligations to creditors and invest in new projects that make them more money. Declining revenue will force businesses to layoff employees and not invest in future projects. Those layoffs compound the problem even further because more of the population now has less money to spend. This vicious cycle starts all over again; jeopardizing millions of jobs.

But what if you really don’t want to spend your money? Wouldn’t a savings account be the best alternative? Not necessarily. Credit is frozen or has retracted severely from even several months ago. Banks use your checking and savings deposits to loan out to other customers or even banks. Tightened lending standards means lending may only occur to the best bank customers. This shrinking pool of people who can actually borrow, but at higher rates, may deter them from borrowing altogether. Fewer people borrowing means banks end up with a surplus of cash that they can do virtually nothing with. Banks can’t lend your money to earn interest and when you combine that with more and more people adding money to savings accounts, it lowers the rate of return for everyone.

What should you do then? Continue to spend your money.  If you don’t want to save, then invest in dividend-paying stocks (which are very cheap these days) and low-yield bonds.  This will put money in the pockets of entrepreneurs and businesses who will turn around and use the money to create jobs and start new projects thereby jump-starting the stumbling economy. If you’re really a doomsdayer, purchase goods with intrinsic value like: food, fuel and clothing. At least you can use this stuff if the economy collapses and it will always give you something to barter with while people are burning their dollar bills to stay warm. Whatever you do, keep the economic blood pumping by spending money.

The House of Representatives has finally reached a decision on President Bush’s bailout bill. The bill was narrowly…rejected. Since then, Wall Street has fallen apart…again. The Dow Jones industrial markets closed almost 800 points down. The Standard and Poor’s 500 index is off 106 points. The Nasdaq Composite Index is off almost 200 points. Citigroup also bought all of Wachovia’s assets. All of this is because the House of Representatives rejected the bailout bill.

The biggest industries to suffer today have been the technology industry and the energy industry. Worries that all of the economies around the world are slowing down have caused the slow down. Consumers around the country aren’t the only ones who were shocked by the vote. Traders of Wall Street were shocked that the bailout bill vote ended up the way it did. However, it is possible that each side will take part to negotiate a new version of the bill.

Now, let’s look at the Citigroup situation. The Federal Deposit Insurance Corporation has again facilitated another acquisition. It was announced this morning that Citigroup will acquire all of Wachovia’s banking operations. The FDIC was sure to clarify that Wachovia did not fail. It further went on to state that all of its depositors were and still are protected. This acquisition is to help Wachovia’s burdens from the mortgage loan mess.

Gas prices are still affecting our economy. The price of crude oil dropped from $106.89 to $96.37. This is because there are so many concerns about the global demand being completely weakened.

The initial bailout plan that was proposed by the Bush administration has been tweaked several times. Both sides, the Democrats and the Republicans, worked all weekend long on a bill that would please both sides. Here is what they came up with:

1. The bailout plan legislation will be expanded to include the bad assets of pension plans, local governments and small banks.

2. Includes a Republican demand that would allow the government to insure the value of some of the bad loans and toxic securities instead of buying them outright.

3. New executive-compensation limits would be part of the legislation that prevents “golden parachutes.”

4. The government would get $250 billion up front, with an additional $100 billion based on the president’s approval. The remaining $350 billion would have to undergo congressional review.

Lawmakers are confident that this new bailout bill will pass in the next few days. Until then, our economy continues to go downhill.