BY JASON HOLMES – During the last few years, people have been struggling with the struggling economy of the nation. Most of the people were knee deep in credit card debt, and one way to reduce them is credit card consolidation. However, with the stabilizing economy, the job market is seen to be growing too. Thus, the market watchers are of the opinion that the creditors will try to cash in on this improved situation.

1. Credit cards are going to make a comeback – The credit card is going to make a comeback in 2011, if not for one and all then at least for some. Credit card issuers are planning to produce such offers that will attract people back to using more cards. In the third quarter of 2010 itself the consumers received 1.2 billion card offers.

2. Rewards will be more attractive – With the introduction of the Credit CARD Act in 2009 most of the financial experts thought that the credit card reward programs would suffer. However, as most of the consumers have stopped using their credit cards, creditors are thinking of refurbishing their rewards programs to attract more number of people to use their cards. The creditors are not only trying to attract new users, but they are also trying to woo back their old users who stopped using credit cards.

3. More consumers will start spending with stabilized economy – The stabilizing economy will result in a string of occurrences. Employment opportunities are going to increase, both credit card and mortgage delinquencies are going to drop as per the reports by TransUnion. Thus, people will be having more money in their hands. Now common human psychology is like if you have more money in your hands, you can start spending more. As a result consumer debt is going to return, at least that is what the experts predict.

4. Borrowing still tough – Though the credit card issuers are going to increase their offers, the borrowing swill still be tough. People with good financial condition and a good FICO score may only be able to get a new credit card. The FICO score is still important. This is all the more so because some more rules had been added on credit card offerings in 2010. Creditors won’t be able to charge two penalty fees at the same time and are not supposed to increase the interest rate just with one default and so on. Thus, getting a new credit card will still be tough as usual.

5. Payment through mobile – AT & T, Verizon and T-mobile have been thinking of introducing a new technology that will allow shoppers to pay for the items they have bought through their mobile phones. That is the shoppers will have to wave their mobile phones in front of a compatible card reader. This will serve as a welcome alternative for the credit card swipes as many people have lost their money while swiping their cards.

In addition, with the stabilizing economy the fear of identity thieves and other kinds of scams are not going to lower. As per the market watchers and the Identity Theft Resource Center, identity theft is going to increase all the more in 2011. Data breaches may also be prevalent in 2011. As more identity thieves are going to use the social networking sites to prey on victims, more wrong records will get listed onto the credit reports of the consumers. Already, 46 states have introduced laws in regards to identity theft. But, in spite of these laws the consumers will have to be aware of their surroundings and to whom they are divulging their personal information. They will have to more careful about using their credit cards.


Jason Holmes is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like ‘Credit Score The Quintessential Therapy for a Happy Pocket’, Take Creditors and Collection Agencies to Small Claims Court’ and, My Story- From Depression To a Smile’