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'Fiscal cliff' vs. your credit card

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    Expect higher interest rates, new fees

  • Duration 2:57
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Let's deal isn't reached by the end of the year -- taxes won't be the only thing going up.

How could have a major impact on your credit card.

Vera Gibbons is a personal finance expert she joins us live with what we all need to know good morning Kyra nice to see during yanking our I -- this -- -- -- she's on a 5 AM chair apparently a pacing you're saying we concede we can expect more credit card.

Democratic government club that's right because you know taxes would rise the average household would -- -- liability go up about 3500 dollars so.

More taxes higher taxes means you've got less money to pay down your credit card debt right I think a lot of people would become more heavily reliant on their plastic used for everyday expenses.

Of course this comes at a time man.

The average household has 151000 dollars in credit card debt delinquencies late payments are on the rise so not a party had tough times are -- -- -- to -- taxes -- credit card and what should happen on the credit card.

Charge that's right a kidnapped tightening lending standards -- -- -- write if off the -- kind of back into recession and then lending standards would tighten again they've been a little bit looser as of late they would tighten up a bit and I think.

Credit card companies to its slash limits on your credit card on existing consumers and if the issue new credit to new consumers.

They would keep those limits relatively low because they don't want assuming any kind of any more risk.

A lot of people are buying houses now because they say the interest rates are pretty low if they can come up with a cashing had to put down.

You're saying this shouldn't change that oh well here's -- thing if we go off the cliff and the US's credit rating takes a hit.

A downgrade rights and the government's borrowing costs go up and -- -- yours or you'd see rates rise.

On your credit card.

On your -- on your mortgage is that tend to think that would go up and just because you have a fixed rate card all that means is that the issue has to be 45 days.

In order to reiterate that those could -- make it up by -- full percentage point and we can expect some sneaky new fees.

Lovely right -- I mean despite the credit card act.

They find a way -- sort of put in those sneaky fees distant shore up the -- -- -- -- -- for new sources of revenue.

Another consequence would be fewer introductory offer 0% introductory offers.

See a lot of them out there right now.

You know 0% financing for 1821 went one month nearly two years -- -- percent financing.

Now a couple of years ago those offers were very hard to come by you or they messed with the terms -- was your present for six months for example -- -- could see us go back to that type of situation.

If we do fall off the client can be helpful on a Sony just bought a house and they need to furnish the house one they don't have that kind of money.

-- by sofas and -- and so they -- to a furniture stores set.

When they get credit cards your percent for two years and they figured out how -- -- -- -- off with the Muslims have a plan I could and I sufferers are present for two years is going as you can actually.

Paying off well I didn't ask him what you worry about that after the holidays but you know you're that person definitely get on a -- pay something every week -- with your dad he got half the credit -- my -- yeah.

But it -- charge more than yeah -- JavaScript in your little but he's a Smart man yeah thanks so much reacted they -- think.

With sixty now.

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