Credit-card defaults loom

Some economists fear that credit-card defaults could be the next shoe to drop in the economy, as overextended borrowers can't meet their payments. Defaults are expected to reach record highs as unemployment increases.

The credit crunch has made it harder for many people to get credit cards, mortgages, home equity lines of credit, car loans, and even student loans. Fifty-seven percent in our poll said they've reduced their credit-card spending. Eighteen percent said they have had their interest rates increased, been hit with penalty fees, or had their credit lines reduced.

Even cardholders with good credit records are feeling the pinch. Georgia Heard owns a small jewelry shop in Gray, Ga. She was shocked recently when she learned that the interest rate on the credit card she uses for her business had risen from a 0 percent introductory rate to 34.99 percent. She'd never missed a payment but had been late twice. She was unaware of the change for six months, meaning she had been financing the costs of her business for that time at almost 35 percent. She says the credit-card company refused to reduce her interest rate. "Just like predatory lenders, credit-card companies need to be kept under control," Heard says.