September 01, 2010
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News: Small Businesses Holding Up Under Pressure
A new study released by BillShrink, indicates that small business owners are collapsing under the pressure of high credit card debt and a lack of protection. BillShrink provides consumers the opportunity to personalize their searches to find the best deal on millions of different products such as gas and automobiles. The study's results show that while the Credit CARD Act 2009 protects consumers from the deceptive and abusive practices of the financial industry, small business owners continue to feel the raft of high credit card interest rates and unfair fees. In many cases, small business owners have seen interest rate increases upwards of 30% since January 2010.
In spite of the lack of protection, on the average, small business owners have kept their heads above water and have been making credit card payments as agreed. Nevertheless, small business owners are carrying a larger average card balance; sitting at around $12,100 which amounts to approximately 27 percent of active small business credit card accounts. According to BillShrink, in looking at 2300 small business accounts, those owners that paid off their accounts in full each month tend to have better credit ratings.
It looks as though small businesses have become the target of the credit card industry as banks look to make up lost revenue as a result of the CARD Act. Hooray for small business because BillShrink's report reveals that in spite of efforts by the financial industry to take advantage of this market segment, small business owners have continue to manage financial challenges and maintain good credit. BillShrink provides consumers with information that help them make informed decisions that will save them money on such products as wireless phone, gas, and other products. The site has been featured on the Wall Street Journal, The New York Times, Consumer Reports, Fortune, The Dr. Oz Show, The Today Show, CNN, ABC and CBS.