Primary credit card limit of 25% consumers were reduced by banks

According to Standard & Poor's survey released Oct. 15, as much as 25% of they're at or near the limits on their primary credit card, and 20 % said they're approaching the limit on their secondary cards.

Purchasing may shrink further as more lenders follow Citigroup Inc. (see: Citigroup lost $1.4 billion from credit card securitization) and JPMorgan Chase & Co. and impose tougher lending standards to conserve capital. Wal-Mart Stores Inc. executives told analysts at a meeting this week that customers have "maxed out" their credit cards.

Outstanding credit-card debt has risen 75 percent since 1999, while real wages have grown 4 percent in the same period, according to a report last month by Innovest Strategic Value Advisors, headquartered in New York. These conditions are expected will cost retailers by losing as much as 8 % of their holiday sales this year which accounts for as much as 35 % of their annual revenue; because lenders and stores are clamping down on financing.

The less credit available to consumers has the more impacts into retailers confidence.

Related Posts :

1. $915 bln in U.S. credit card debt is time bomb
2. Citigroup lost $1.4 billion from credit card securitization
3. The Next Meltdown: $950 bn Worth of Outstanding Credit-Card Debt—Much of it toxic

Sources :

Bloomberg: Sears, Home Depot May Lose 8% of Holiday Sales on Credit Limits, November 1, 2008 00:00 EDT

Please Note!

This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.