HSBC may soon begin to run down its credit card business
Monday, 13 June 2011 13:00One of the nation's most recognized credit card lenders recently announced that if it cannot find a buyer for its $33 billion portfolio, it will begin a rundown of operations for that business.
HSBC chief executive officer Stuart Gulliver recently announced that the lack of a buyer for the company's large credit card business in the U.S. may necessitate the lender slowly winding it down, according to a report from Reuters. Last month, the bank also revealed it wants to slash about $3.5 billion in costs and reduce its retail banking efforts in general, and this is another step in that process.
Meanwhile, Gulliver also noted that the company's U.S. credit card business is still profitable, the report said. This may be because consumers have largely made more conscientious efforts to reduce their debts with on-time payments and less spending.
However, those that are still struggling with credit card debt may want to consider consumer credit counseling as an alternative to bankruptcy. This solution may make them more capable of managing their finances in the future.