I guess you are under a belief that the balance on some peoples cards are that way because of what they spend. It could have nothing to do with the loan shark interest fees that they applied with a very dishonest policy called universal default! HA! The little words on the applications saying “we have the right to change the terms of this agreement at any time for any reason” do not spell out what they can and will do to a person who makes a minor mistake, and it doesn’t even need to be with their co.
It doesn’t say they will raise your interest rate to loan shark fees or that it that may result in an over the limit fee and that all these fees will result in compound interest which will also be tacked onto your bill. They won’t say they will hold you hostage with these outrageous fees if you cannot pay the balance. They call all these fees “penalty” fees! So how much penalty is enough?
If you belief most of the CC co’s are moral you not very informed.
All of the financial advisors that I have read warn people to watch out for the dirty tricks CC co’s charge. I wonder why? BTW, I am not in debt. I have not had a credit card for over ten years and I have no intention of getting one. But they sure do want me! The same goes with payday loans. You should always do your homework first and choose legitimate and reliable websites, such as Tnb Loans, Lend Up and others.
Buck up will ya? 😉
I will admit that I was also lumping you (well not really you….but all of us who have been in consumer debt over our heads) in with the “We made our bed now we get to lie in it” philosophy. After reading your post and thinking about the likely scenarios I can see where you were offended and the original poster was simply painting with too broad of a brush.
I guess there are more stories out there but I’d be willing to bet the vast majority of people swimming with the sharks got there because of that new HDTV Plasma and surround sound than medical crisis or divorce.
Overall though, this particular discussion was about predatory lending and the facts are that these corporations are doing as much as they can to pile on more profits as soon as they know a person is in a position of weakness. That’s the textbook definition of “Predation”.
Very well put:
Holding people hostage with ridiculously high fees because they committed the “crime” of not being able to pay off a balance is wrong! If a person is paying every month they should not be subject to so much high fees and interest that only a very tiny amount is applied to the principle. There are violent criminals who get far milder punishment than what is doled out to someone who commits the “crime” of getting behind with a CC co.
Reading Elizabeths Warren books, she says a lot about that….how credit used to be extended only to those who they knew were most likely be able to repay.
As long as the politicians in Washington DC are getting big donations from these CC co’s though I don’t think much will change.
I think they all know the CC co’s are out of control but money talks and some of those politicians are just too greedy & spineless to stand up for what is right.
Thumbs up to Bernie Sanders of Vermont and Chris Dodd