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The army,war, killing thread and subsequent posts got me to thinking about the status quo, the poor, and credit card debt. Then Robert endless chanting for a debate made me want to post this for debate purposes. I don’t know what the situation is like in other countries but credit card debt is big problem here in the U.S..Peope are in way over their heads, losing cars and houses, and paying god awful 28% interest rates on credit cards they have maxed out.
So my question is this. Who is at fault for the credit problem and why. Is it the banks because they extend so much credit to people and then jack up the interest rates? Is it the people, cuz they are maxing out there cards with money they don’t have? Are there other socio-economic trends that have come into play?
Your thoughts?
So you would agree then, that managing credit card debt is solely the responsibility of the person charging it? So when someone maxes out their card to $20k, and then starts paying back the minimum $200 a month, and gets their interest rate jacked, it’s of their own making?
Get yourself a magnifying glass and read the fine print.
Credit cards are a great way to build credit. You just have to be very careful because it certainly isn’t "free money". Sure, the banks make out like bandits with all the interest they charge but ultimately the sole responsibilty is on the credit card holder. The problem is with people’s fascination with "stuff". Stop being so materialistic, skip out on the fancy car, the big tv and just get what you need. Personally I like to keep my expectations low so that way I don’t become easily disappointed.
Yeah, credit card companies reserve the right to jack up the interest rate if they see fit. I think the max by law is 28.something %.
Yeah, if you run it up and then make min pays, they will jack the rate to "entice" you to pay it off sooner. Miss a payment, rate up. Make a late payment, rate up. Go over your limit, rate up. Have other outstanding debts (boat, house, car, another credit card), rate up. It’s all about risk to the bank. They are lending money with the anticipation you pay it back. If the bank feels their interest is at risk, they are looking to collect as quickly as possible. Recent legislature has made it harder to hide behind bankruptcy, but once again, what good is loaning money if you just lose it?
So no one thinks jacking up rates is outrageous. Or the recent trend of raising late fees, I think it is around $35 minimum any more. Anyone?
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