Small business owners throughout the nation are now encountering harsh interest rates and other setbacks with credit card companies. As Michelle Miller reports on this ongoing credit crisis.
Background sounds
>> Dorris McMillin assumed spelling runs a consulting business from home. The economic slowdown has made it impossible for her to get traditional lines of credit so she's turned to her credit cards.
>> I primarily use my credit cards to take care of the office expenses, supplies; whatever I might happen to need.
>> Payments from customers are drying up so she's piled up a mountain of debt on her cards.
>> I have probably charged about $10,000.
>> And that's becoming more costly. A National Small Business Association survey said to be released Monday shows nearly 60% of small businesses are using credit cards more over the last 4 months with 79% saying the terms of their credit cards has gotten worse in the same time period.
>> Our survey is showing that small business owners often don't feel like they have time to turn the bill around in some cases and get it paid on time.
Background sounds
>> Banks which received big bail outs are among the worst offenders. 2/3 of all card issuers have lowered credit limits and raised fees for credit card transactions. Along with higher penalties for late payments, the new terms have brought in $18.1 billion to financial institutions.
>> I'm in business to make money just like they are but I'm not gouging.
>> You shouldn't have to fear that any new credit card is going to come with strings attached.
Background sounds
>> President Obama is pushing congress to pass credit card reform by Memorial Day. The house has already passed a version which puts a cap on interest rates. A senate bill could be voted on this week that would help individuals and small businesses alike.
>> Small business community always leads us out of these economic down turns.
>> That's Dorris McMillin's plan.
>> I've been in business 23 years and I'm not going out of business anytime soon.
Background sounds
>> As long as her plastic holds out.
>> Michelle Miller, CBS News, New York.
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