Discussion in 'Political Discussion' started by tanked_as_usual, May 12, 2009.
but the reality is.....
The Real Problem with Credit Cards: The Cardholders
The problem can't be with the people who borrow more than they have because . . . that's exactly what obama is doing.
Nothing is anyone's fault anymore - except for big business.
Bad consumer credit practices is nothing new. Many consumers just simply aren't too bright sometimes. However, credit card companies' raising interest rates on existing revolving debt is out of the consumers' control. These and other such practices are what are being targeted by the WH. Unlike consumers, the banks should and do know what's going on, yet they nothing to discourage, and indeed often encourage (typically with teaser interest rates) consumer abuse of credit cards. To say the banks don't own any fault is absurd. The entire system is faulty. And what is that system called? Capitalism.
uhhh......no.......the card companies make it perfectly clear what is going to happen to interest rates with their cards.......
the argument ends at 'many consumers aren't too bright'
the only problem with capitalism is that too many citizens are total morons...........and society is breeding more.....just look at the kids in public schools.......not the schools, but the kids themselves.........and their parents
nothing wrong with capitalism..........even a HS grad can make it big and many do............the problem starts and ends with the total morons and the completely lazy
No. To repeat a part you ignored, many credit cards have been newly raising interest rates on including revolving debt (ie prior purchases) made when the interest rate was lowerd nad no indciation had been made that it was going to go up. It's as if someone took your fixed mortgage rate and raised it on you. This and similar other practices are what the WH is trying to put a stop to.
Again, consumers aren't innocent. But neither are the credit card companies, and they should know better.
so blame the CC companies for the consumers stupidity and lack of control...........the CC companies aren't doing anything that wasn't agreed to the moment the consumer takes that card........they make it pretty clear that interest rates could go as high as 22% or so (state-to-state dependent, which is another issue.......why do the states allow the rates to be so high????) it says so right on the credit application......it is ONLY the fault of the consumer to not read the terms or be that stupid at math
Another conservative pleasuring the corporation. The problem is that the credit card industry is predatory, offering credit to people who probably shouldn't have it, and then raising rates. Sound familiar? Right, subprime lending.
Should consumer be aware? The sad answer is that they have to be because they have no advocates.
Front Line Does It Again: Credit Card Industry Tactics Revealed | Science Blog
Rip-off Report: HSBC, Orchard Bank LEADERS IN CREDIT CARD PREDATORY LENDING Salinas California
and it is completely different from a fixed rate mortgage.........there are no fixed-rate credit cards.........they are either tied into some index or the CC companies have some incentive rate for the first year .....
the concept remains that people get credit cards and buy stuff with money they don't have.........THAT's whats wrong with this picture......
But isn't that what the banks want you to do??
Right now I have over 100K in available credit on 3 cards.. did not ask for all this, but they continually raise my limits.. I am one libbie with self control.
good for you..........I have a mind-boggling amount of unused credit my limits get raised, also.........but that''s not the point
all kind of companies want you to do things.......its their obligation to their stockholders to market their products
countless things are marketed that people don't act on........so do we blame the companies themselves for the things people DO act on?
it is not the job of the financial institution to act as a conscience for the consumer.........that said, I would deem it as predatory lending when a financial company offers credit cards to people with horrible credit ratings.........I simply believe that people with poor credit should not be lent money
I know somebody who defaulted on her credit debt and after she resolved it she got tons of credit card offers from Capitol One for years.
sure........did she apply for any of them?
Agree with this post 100%
The problem with this discussion is the use of the word "predatory" to suggest that people are defenseless against credit card companies as if the companies are velociraptors and the people using them are baby kittens. NO ONE HAS TO USE A CREDIT CARD! There is no law that says you have to have credit. If you can't afford something within the next 30 days DON"T BUY IT! Spend your credit on a college loan or training for a trade and make more money so you can save enough to buy the 40" plasma screen or the snowmobile.
Credit cards themselves are a scam! Don't use them unless you can pay them off right away. WTF are people thinking when they overload on credit and then blame someone else for their bankruptcy? I know a lot of good, hard-working people who I love to death who do this very same thing. I can't believe when a friend or relative comes to me asking for some bread becauise they're behind on their mortgage or car payment and I ask them if they have a credit card, their response is always, "It's maxed out." MAXED OUT? Are you NUTS?
edit: The housing situation is different and more complex. I'm treating the abuse of credit cards in a vacuum, I know.
libbies will argue that credit card abstinence doesn't work
I just posted about that in the "abstinence thread".:rofl:
In order to get a good credit rating you have to use credits cards somewhat frequently. Try getting a home loan with no credit cards or no credit card history. 'Twould appear to be a double bind.
I bought my first house without a credit card. I never had one until I was 32. Hardly ever use it. I saved up cash for a big downpayment and put up my small business and bong collection as collateral. I then bounced off equity and performance record to buy some other properties and off I went. It's prolly different, now.
using a credit card is fine if you have the $$ to pay for what you are buying...........doing so would give you great credit.......
I mean if you are going to buy something for $1000 and you have the money for it, are you going to go get the cash or are you going to charge it and then pay it off?
it still comes down to spending money..........and whether you have the money to spend or not
even good credit might not get you a mortgage now...........you need to have a decent down payment
that said, if you have enough $$ to put down, they dont even check if you have a job
No one is to blame anymore is right. We're creating an faultless society. One where any excuse you can think of, that blames someone, or something, outside of yourself, is acceptable. I hate CC companies as much as the next guy. I think their rates, and fees, are criminal. HOWEVER, a CC is NOT A RIGHT. A CC is a priveledge. Someone, or something, is lending you money. Who are you to dictate what those borrowing terms should be, after you accept their cash. How many people here read the size 1 font pamphlet the CC company gives you? I'd guess none. The bottom line is that the oney isn't yours, and when you opened your account, you agreed to their terms. Don't like them? Well don't use one. I hate their terms with a passion, but guess what, I don't carry a balance. I use my CC frequently, but I pay my bill when it comes in. CC's are great for the responsible. It's the poeple who live beyond their means, or are irresponsible, that despise them.
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