Posted on 12/04/2007 5:29:07 AM PST by Brilliant
And oh, by the way, if you use your credit card in such a way that you have to pay interest in the first place, then you're a fool. The only safe way to use a credit card is to pay it off every month so that you don't pay interest at all.
Or do what I did--call the CC company and tell them to roll it back. Worked for me and only took a few minutes of my time, but I can see how Congress needs to get involved to solve a horrendous problem like this...not.
We got an offer from a competing bank offering to transfer our balance for a cheaper rate. When we tried to do it, we found it could not be done because the existing credit card was handled by the same service as the new card.
How do you switch companies when they are all doing the same crap to their customers? It’s nice to be able to stand on a high horse and denounce people who need to carry a balance, but the fact remains that there are people who do and the CC companies try every scheme in the book to make you pay them money forever. Many of those schemes they’ve come up with in the last few years look like arrangements between lords and serfs from the middle ages rather than legitimate lending practices.
True. The Dave Ramsey approach.
Though if you do need to carry a balance, be an informed consumer and shop around. There are low fixed rate cards out there. I just received one from a credit union in Raleigh, NC that is 7.99% fixed. I have another from a credit union in California for 8.9% fixed.
Levin’s remarks are aimed at consumers who get glassy-eyed at the latest slick advertising. There are forums filled with folks (mostly moonbats) that try to game the system or figure out ways to avoid paying their bills:
http://www.creditboards.com/forums
http://debt-consolidation-credit-repair-service.com/forums/
Dems in Maryland did something similar. They made it illegal to offer us with good credit a discount on our homeowners insurance. They claimed people with bad credit take just a good of care of their homes as us. Well it just raised our insurance rates, another tax to pay for those irresponsible.
“the CC companies try every scheme in the book”
That’s why you don’t do it, though. It’s part of the cost. Congress can eliminate this practice, but they will find another way to get it out of your hyde. They aren’t in business for the fun of it. If you want to borrow, don’t do it on your credit card.
But how can we get a good “credit crunch” going if we can’t run up our credit cards to the max? How will we be able to cry “doom!”?
I haven’t paid interest in over ten years. I never put anything on my card I cannot payoff at the end of the month.
The problem is that those people who are “universal defaulted” are in the kind of problems that don’t allow switching.
It is like telling a broke and starving person to “just go buy food”.
Essentially they credit card companies are squeezing a few pennies out of people before bankrupcty.
“This is just another excuse for the socialists to exert more control over the people. “
Maybe and maybe not. Do you think the business practices of the credit card industy are predatory? I do. Sure people make their own bed but the banks sure help them buy the bed regardless of their ability to repay.
Then they send you 10-12 offers a week for new cards or special services. IMO, the banks are consolidating to virtual monopolies. Their practices are immoral and extremely risky. As we see in the mortgage industry they will ask the govt for a bailout when the stuff hits the fan.
First, your premise is wrong. They aren't "all" doing it. Credit unions are an exception. Problem is people burn their bridges with the good institutions by poor payment history and then fall for the lure of the shysters.
Second, who cares? There is NO government-mandated "solution" that won't make the problem infinitely worse. Let folks pay off their own debts, or if they are hopelessly over their heads, they can seek legal relief in a Chapter 13 reorganization where they pay their debts back with little or no interest. (And yes, the court puts you on a budget for 3 to 5 years).
There I fixed it. With interest rates at or near all time lows the credit cards rates should not be at 21% or higher ie: Sears ect.
So you are a day late with your phone bill and your CC interest rate should jump to 30%, even if you are current on your CC? That's just plain wrong. What's even worse is that if someone does get into that situation, they will likely be heading for bankruptcy because paying on such an interest rate is simply not sustainable. And the CC bills don't get discharged in bankruptcy, either. So the CC companies are making money like crazy on this. Top top it off, the CC debts become a bigger priority than paying your mortgage and that has resulted in people losing their homes. If the CC companies are stupid enough to lend to someone withh risky credit, it's partially their fault if they don't get repaid. And oh, by the way, if you use your credit card in such a way that you have to pay interest in the first place, then you're a fool. The only safe way to use a credit card is to pay it off every month so that you don't pay interest at all.
That's a pretty arrogant statement. If someone can pay their bill in full every month, why would they have credit cards? Most people use them for things thet can't afford in a lump sum. Major car repairs for example. What should I do if I need $2K in unexpected repairs? Just wait until I can save, but not be able to get to work? Or if the house needs a major unexpected repair? Or major medical bills? There's lots of very good reasons why people need CC today and it's pretty damn arrogant of you to think otherwise. Or have you been turned down too often from the CC companies because your FICO score is under 560 and you are just crying sour grapes?
God help us (excuse me, government help us) from 10-12 offers a week.
More seriously, government is more predatory than any credit card company can ever hope to be. See my #15. Let folks work out their own problems without the government screwing things up more.
I don't know why this is so hard for some folks to understand.
Ahhh, they already did about year ago. The BK laws were changed to heavily favor the CC companies.
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