Credit card rates may dip for some
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Another factor cardholders should consider before jumping to a new card is whether this Fed rate cut will be the last. "I wouldn't be surprised if there's another rate reduction," says Dennis Moroney, senior research analyst for bank cards at TowerGroup.

"I thought they'd go with the 50 (basis points) early on, primarily because of what they'd done with the discount rate in August," he says. "But retail sales are not as good as everyone expected. Early indications for the holidays are fairly modest. The Fed made a decision to be aggressive to get the benefit going into the holidays so that the consumer is more inclined to spend. They're trying to encourage the consumer."

Consumer debt still heavy
Credit card spending continues to increase, and Moroney sees why. "With the rate cut, consumers may have lower minimum payments, but it's a short-term feel-good experience. If you look at fundamentals in the country, one is the amount of debt. Many American consumers are struggling in terms of being able to manage debt. But besides the amount of debt they're carrying, the savings rate has been in a negative mode since the second quarter of 2005. Consumers are not supporting their lifestyle through savings."

He notes that response rates for credit card solicitations have been rising, especially since many of the issuers are using the Internet instead, and thinks this is because they no longer have home equity lines of credit to fall back on.

"The credit card is an opening for consumers to weather the storm of home equity," Moroney says. "It's all about cash flow. Balance what's coming in with what's going out. The credit card is the opportunity to do this. But credit card debt is growing and delinquencies are up, too."

Don't hide from trouble
For consumers caught in the cash-flow backwash, Moroney advises them not to hide.

"I think that if consumers are in the situation of trying to cover the cash flow, they should reach out and talk to card issuers. It's a very competitive market, and issuers want to hold onto customers. The best thing for a consumer to do is talk to the issuer. They will work with the consumer. The alternative is a collections process. And it will take much longer to repair your credit if you go this route. If you don't get satisfaction, then it's time to start shopping for credit."

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If you do start looking, Paterson stresses the need to research what's out there.

"The best advice is to be as informed as possible about your cards and what's in the marketplace, and then weigh that in terms of your individual situation. Credit score and credit history need to be factored in, especially in an environment when consumers are overextended. The challenge to the consumer is to get into the terms and conditions. And understand how often the card is repriced," he says.

"Whether interest rates are rising or falling," says McBride, "the advice stays the same: Shop around for the best rate you can get and pay down credit card debt as quickly as possible. Credit cards are still the most expensive debt most households have."