You’ve probably heard about the rise of debt-free credit cards, and you might even have heard of the “credit card death spiral” — that is, the fact that many Americans are becoming debt-burdened by debt and can’t make payments due to the stress of being stuck with debt.
But for some consumers, credit card debt is just as much about being stuck in debt as it is about being able to pay it off.
We sat down with some of the biggest players in credit card finance to talk about how they’re working to combat the problem.
Credit card companies are being more upfront about the risk of default While most credit card issuers are doing everything in their power to ensure their cards remain viable, they’re also taking steps to address the risk posed by non-compliant cardholders.
In response to the mounting debt burden of cardholders, credit cards issuers have been taking more proactive steps to prevent cardholders from defaulting on their obligations, from offering credit monitoring services to consumers who have made payments, and from restricting the use of unauthorized debit cards to make it harder to skim credit card payments.
In some cases, these new measures have led to card issuer executives announcing a voluntary code of conduct that makes it clear that consumers are responsible for the debt they’re carrying, and that if they default on their card, the company is willing to hold them responsible.
Some credit card companies now offer consumer-facing protections to help consumers stay in control of their finances Credit card issuors are also making some significant changes to their customer service policies in the hopes of protecting consumers from the financial risks associated with credit card defaults.
These changes are not limited to the use or misuse of the card, but also include: removing credit monitoring as a primary method of customer service, including with regards to credit card balance reporting and other information