Credit Crunch? What Credit Crunch?

This week, the Senate voted to increase the cost of credit in the middle of what pundits have called the worse credit crisis in the history of America. Despite the recent recession, some believe that the consumer credit industry is doing well—one of the few industries to do so in the current economic climate. This move was to be expected and was another matter on the Democrat's to-do list upon taking the reigns of power this year.

What does this mean for us?

1) Good bye 0% APR;

2) Hello crappy cash back offers;

3) Good bye sweet credit card reward programs.

Like many responsible Blue State Republicans, I'm a big fan of the responsible use of credit cards. So long as you pay off your balance each month, credit cards are willing to reward you with cash back, airline miles, hotel stays, and other goodies.

For example, nearly all of my personal purchases go on my American Express Blue Cash card. This gets me about $500.00 back at the end of the year for buying stuff and paying bills that I would have anyway. Recently, AmEx sent me a letter advising that they were reducing the cash back interest rate on most of my purchases effective 6/1/09. Once again the Dems are costing me money.