Tag: credit card

Credit Cards in Times of Economic Crisis: Government Intervention and Financial ReliefCredit Cards in Times of Economic Crisis: Government Intervention and Financial Relief

Unrecognizable female hands holding a credit card and a smartphone, paying for purchases on the Internet remotely

During economic crises, individuals face heightened financial challenges, and credit card users, including Milestone card holders (check out Milestoneapply to apply for one), are particularly susceptible to the impacts of economic downturns.

Governments often play a pivotal role in providing financial relief, implementing interventions to ease the burden on citizens grappling with credit card debt and economic uncertainty.

One common government response to economic crises is the implementation of stimulus packages. These packages may include direct financial assistance to individuals and families, tax rebates, or unemployment benefits.

By injecting money into the economy, governments aim to alleviate financial strain, offering credit card users a lifeline to manage essential expenses and, in some cases, address outstanding debts.

In times of economic turmoil, central banks may also intervene by adjusting interest rates. Lowering interest rates is a strategy to encourage borrowing and spending, potentially making it more manageable for credit card users to carry balances.

However, this approach comes with its own set of complexities, as excessively low interest rates may contribute to inflation and impact overall economic stability.

Government-backed relief programs may specifically target credit card users facing financial hardship. Some initiatives involve negotiating with credit card companies to temporarily reduce interest rates, waive late fees, or provide extended repayment plans.

These measures offer immediate relief for individuals struggling to meet their credit card obligations during economic crises.


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Debt forgiveness programs may also be considered, where a portion of credit card debt is erased to ease the financial burden on affected individuals.

However, these programs are typically more complex to implement and may have long-term implications for both creditors and debtors.

The role of regulatory bodies becomes crucial during economic downturns. Governments may introduce or strengthen regulations to protect consumers from predatory lending practices, ensuring that credit card users are not exploited during challenging economic times.

These measures can include capping interest rates, limiting fees, and enhancing transparency in credit card agreements.

Communication is a key component of government intervention during economic crises. Authorities often provide guidance and resources to help individuals navigate financial challenges.

This may involve educating credit card users on debt management strategies, financial planning, and available support programs.

In conclusion, credit cards in times of economic crisis become a focal point of government intervention and financial relief efforts. Stimulus packages, interest rate adjustments, relief programs, and regulatory measures collectively aim to provide support for credit card users navigating uncertain financial landscapes.

As governments continue to adapt their strategies to evolving economic conditions, the goal remains to mitigate the impact on individuals and foster financial resilience during challenging times.

How to Save More Money With Credit CardsHow to Save More Money With Credit Cards

A credit card on a laptop


Credit cards have increasingly become a part of everyday life, according Mastercard reports that as of 2020, they have more than 100 million customers in Sub-Saharan Africa. While this is still below their target of 500 million, it shows how more people in the region are getting used to no longer using cash alone for transactions.

Many people see credit cards as an obligation, but if used wisely, there are actually many benefits to using them. Here are some ways you can use a credit card to your advantage:

1. Use only one card

Once you’re approved for your first card, you might be tempted to apply for more, but this isn’t a good idea. Having just one credit card makes your spending more manageable and prevents you from exceeding the budget.

It also helps you keep track of how much you actually owe and reduces the chances of you forgetting to pay different bills. This will help you save money in the sense that it prevents you from being tempted to spend more than you initially intended.

2. Have a clear spending limit

The same article also notes that it is important to have established a clear spending limit and automate it if possible. In this way, it will be impossible for you to go above your means, which is a problem that happens to many new credit card users when they receive their first card.

Often, limits are set by the bank with your application, so always keep them in mind to avoid problems. Doing so can help you be more aware of how much you’re spending and you’ll be able to make fewer purchases.

3. Ensure good creditworthiness

For those who want to build good credit, a credit card is one of the most effective ways to do so. A feature on credit scores describes how it can affect many financial aspects of your future life, such as applying for utilities, renting real estate, and even signing up for insurance.

Good credit scores are highly valued in many different countries, so it’s important to try to get a good score if you want to move abroad. You can do this by paying your dues on time and always staying informed of your bills. If you ever want to take out a loan, a good score is necessary to get approved for lower rates so that you can save more in the long run.


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4. Spend to earn perks and rewards

For those who like to travel or buy shopping items, using a card can have many advantages. CNBC writes that many institutions have a points system that allows you to collect rewards by making purchases.

These points can then be converted into practical applications, such as airline miles, discounts at certain stores and even cashback percentages. The more you spend with your card, the more benefits you can receive from your provider. Just make sure you only spend money that you know you can repay.

5. Take advantage of price adjustments

One benefit of using a credit card that not many people are aware of is the terms regarding price adjustments. Certain companies have clauses in their contracts stating that if you bought something at full price but shortly after you saw it at a discount, you can request a refund for the amount you could have saved on.

A list on Forbes regarding several providers that license this includes Capital One and UBS. Be sure to read the terms and agreements thoroughly to see if you qualify for this benefit and what requirements your bank needs. This will help you save in times you could have spent less.


Always consider the pros and cons of this before applying for a credit card. Determine if it’s right for you and understand the risks. Pay your balance in full and on time to avoid any overdue fines.

If used properly, credit cards can help you save money in many different ways. Make sure you always use benefits and benefits to your advantage so you can get the most out of them.