Credit Card Users Keep Getting Squeezed, Rates and Fees Rising

Whenever credit card use becomes more difficult for consumers, small-business owners are one of the most deeply affected of that group. Credit card debt is a huge source of small-business financing (some would say too big of a source).

But it is indeed getting more difficult. The Wall Street Journal reports today that even though the Fed is lowering its benchmark rate--which should be increasing lending activity--credit-card issuers are tightening in a number of ways: raising interest rates, hiking punitive fees, and lowering limits.

The exact responses differ. But it all points to one message: if you've had a large outstanding balance on your card for some time, the party's over. For example, Chase is now charging a $10 monthly fee for some customers with outstanding balances of over two years.

The article has a great breakdown of what issuers are doing by specific company. Check out my earlier report on how some strategies--like adding new cards--are not the right answers.