Alex Filonov

Credit Card Rules: No Consumers Need Worry

I am paying my balance in full. And I want to continue doing so. Essentially, credit card companies give me about of month of free credit, which means extra money in my pocket. This credit is not exactly free, because merchants pay a fee. But they do accept credit cards, so it looks like it's profitable for them.

Couple of points here:

it's convenient to carry more than one credit card, because not all merchants accept all of them. At Costco, you need Amex.

In current environment, further contraction of debt is very dangerous for economy. We are not out of deflation danger yet, and debt (and monetary mass) contraction is deflationary.