Credit Card Crunch
Some of this activity reflects the different ways consumers use credit cards now. Shoppers leave the checkbooks home and charge groceries, movie tickets and taxi fares to cash in on card rebates – and use credit when they shop by phone and computer. But there’s more of that old familiar, getting-in-over-our-heads syndrome, too. Consumers are spending $1.08 for every $1 they earn, says Federal Reserve Board member Lawrence Lindsey, who worries that the binge trend has been building for decades....