Last time we discovered that banks are cutting back on the amount of credit cards they issue and who they issue them to.  We also found out that consumers, especially in the USA, are using their credit cards more for small transactions, but less overall.  This seemed like a good move; small purchases are easier to repay on time and help cut down on the amount of interest and debt that consumers accumulate, allowing them to rebuild shattered credit ratings and continue to use their cards within their means.  However, is this enough to save the credit card industry?

With banks holding back credit and consumers starting to live more within their means, I wonder whether we could already have lived through the Credit Age?  Certainly the economic recession is terrifying to many of us, but I wonder whether this fear won’t just fade away when the dawning light of financial stability reappears – however many years in the future that may be.  For we should not underestimate just how great a change it would be for us to move away from living outside of our means.  The commonplace use of credit cards is not simply something that could disappear overnight; it is a lifestyle for so many that credit card spending is practically part of our cultural identity!  Should we expect this depression to teach us a hard lesson from which we will learn and grow, or should we be realistic and assume that the financial crisis will simply lead to a new system of credit into which we will all gratefully plunge ourselves?

We cannot deny the fact that most of us would rather live outside of our means and pretend that everything is fine when it really isn’t.  Our history of irresponsible borrowing and masses of ever-growing debts are tribute to these facts.  Perhaps the credit crunch will teach us a valuable lesson; maybe it is time for us to put our credit cards down after all…