[doc30]

Seems these credit companies should have had the same thought-process before giving $300,000 loans to someone who makes $12 an hour.

The credit companies are getting what they deserve. They had the bankruptcy laws changed so people would not have their credit card debt wiped out. So now as people with poor credit are forced to pay their credit card bills, they have to let their homes go into foreclosure, especially if they have an ARM going up after bankruptcy restructuring. The credit card companies get first dibs on debt repayment and the mortgage companies get screwed when there isn't the money to pay a resetting ARM. This link explains it.

In other words, people have to let their homes go in order to make credit card payments.

[Hydroshock]

Yep, you got to love it when the Law of Unintended Consequences comes and bites someone in the rear and rips out a chunk. Oh well, file this one under be careful what you wish for.

[quack]

Don't forget,the doubling of minimum CC payments overnight.I said then that it was a horrible idea and I was right.Everyone was talking about how great it would be and that CC's would get paid off faster.Well,no they won't ,when your minimum payment goes from $80/mth to $160/mth,and say you have two or three cards.What happens is,you get behind,your rate goes up,you get late fees,and presto,you're in debt up to your eyeballs.

The problem with that scenario was/is,people didn't have extra money laying around every month to double their payments.Now that costs have increased on energy and food(basic neccessities),there's even less money to go around every month.

[SoothingDave]

The credit companies are getting what they deserve. They had the bankruptcy laws changed so people would not have their credit card debt wiped out. So now as people with poor credit are forced to pay their credit card bills, they have to let their homes go into foreclosure, especially if they have an ARM going up after bankruptcy restructuring.

I don't doubt what you're saying, but what kind of idiot pays off unsecured credit cards before he pays his mortgage? You got to have priorities.

What the gov't did was double everyone's minimum monthly payment. Which crunched a lot of people into choosing between mortgage and utilities versus credit card bills. Guess who loses out in that situation?