Credit cards that are widely considered to be a convenient way to make purchases are becoming tough to manage at the current phase of slowdown.
The global financial crisis has had a significant impact over the credit card industry and thereby made the situations worse for both the issuers and the customers. The credit card segment has faced increased number of delinquencies in the recent past. Hence with a view to lower the risk, credit card issuers are tightening their norms. They are reducing or withdrawing the credit free period and also increasing the interest rates on the credit borrowed.
Also banks are resorting to a practice of deducting the money from the savings account of a person who has a credit card with that particular bank. All this is been done to avoid the defaults that have been rising after the crisis.
So under such a situation it is very important to manage the credit card properly before one falls into a debt that gets out of control.