Like many Americans, I carry more credit card debt than I'd like. And, like many Americans, I get pummeled every week by offers for even more credit cards and the chance to get deeper into debt. On top of that, my mailbox is likewise filled almost daily with offers of second mortgages so I can reduce my credit card payments, but still get into even more debt. They tell me that I am "pre-approved" - whatever that means - for just about anything.

This is why this month's cover story, "What's in Your Wallet?" by Scottsville-based writer James C. Allen, is so timely. He focuses on Capital One Financial Corp., the Falls Church-based firm that has managed in just a few short years to be a major player in the credit card game. By using data on customers like never before and marketing aggressively to them, the firm is up there with big boys MBNA and Citibank in offering credit cards and other services. So doing, they have emerged as one of Virginia's hottest new companies and largest employers.

That's good news. By hiring more than 4,000 new workers in Northern Virginia, Fredericksburg and Richmond, they are propping up the state's economy and keeping unemployment rates low during this downturn. Capital One's slick new television ads which include hobgoblins flying out of envelopes, are placing a bright, new Virginia brand solidly in the minds of millions of Americans. And, one can argue that freer credit truly helps the U.S. economy by allowing many to buy goods they'd otherwise have to postpone. There's nothing wrong with that - provided the goods are eventually paid for.

As Jim's story, notes, however, there's a downside, too. So far Capital One seems to have done such a good job at targeting good credit risks that it has avoided the pitfalls that other lenders, such as San Francisco-based Providian Financial Corp., have fallen into. The recent recession has made it harder for people to keep up with their payments. Since Providian offered credit to worse risks, its costs have shot up and it has raised its interest rates for higher-risk accounts. Some worry that Capital One will follow suit.

Another problem: Some credit hawkers go after teenagers. My colleagues here at Virginia Business say that their high school kids get loads of offers even though they aren't legally adults. These come-ons are obvious ploys to drag children into the culture of credit and a lifetime of debt. Sure it's good to be able to buy things, but the discipline is to determine what you really need and how it figures with your ability to pay. I fail to see how it helps to get young people with no income involved so early.

Luckily, this recession seems on the wane. If it had been much rougher, the house of credit cards would have really come tumbling down - with disastrous results. Among the victims would have been everyone from teenagers to me.

Peter Galuszka Executive Editor