Credit card companies going crazy! WTF?!

[Thej3sta2]

Craze crud man

[JBougie]

I know it's frustrating to deal with, but there are a couple things that we need to think about when we harp on credit card companies:

When people file chapter 7 bankruptcy and have their debts wiped clean, unsecured creditors get 1-5% of what they are owed, IF they get anything at all once the secured assets, again, if any - are sold. So what happens when someone with a $10,000 credit card walks away without paying anything? They have to re-coop that money somehow - that is passed back on to the comsumer in the form of annual fees, interest rate hikes, etc.

There is NO reason that people should rely on credit cards - we live in a 'who cares if I don't have the money, I want it' society and have dug ourselves into it. Everyone falls into it at one point of time or another, but you can't just say it's the banks fault - there is way more to it than what is on the surface. (*I know a lot of people don't do that, but 95% of Americans do). I don't have a credit card and don't want one because I would be that person sitting at the mall racking up everything I see - especially since I have a fetish for designer bags :)

I work in the Bankruptcy/Foreclosure industry, so I have learned a great deal about the behind-the-scenes things that go on. The banks aren't horrible people just looking to rob you blind. If you don't like having to deal with them, don't apply for that Best Buy credit card and save up the $1200 for that surround sound system you just 'have to have' instead of paying 17% interest for it....

I know it sucks, I'm not saying it's not - just my $.02

[tomato]

Originally Posted by JBougie

I know it's frustrating to deal with, but there are a couple things that we need to think about when we harp on credit card companies:

When people file chapter 7 bankruptcy and have their debts wiped clean, unsecured creditors get 1-5% of what they are owed, IF they get anything at all once the secured assets, again, if any - are sold. So what happens when someone with a $10,000 credit card walks away without paying anything? They have to re-coop that money somehow - that is passed back on to the comsumer in the form of annual fees, interest rate hikes, etc.

There is NO reason that people should rely on credit cards - we live in a 'who cares if I don't have the money, I want it' society and have dug ourselves into it. Everyone falls into it at one point of time or another, but you can't just say it's the banks fault - there is way more to it than what is on the surface. (*I know a lot of people don't do that, but 95% of Americans do). I don't have a credit card and don't want one because I would be that person sitting at the mall racking up everything I see - especially since I have a fetish for designer bags :)

I work in the Bankruptcy/Foreclosure industry, so I have learned a great deal about the behind-the-scenes things that go on. The banks aren't horrible people just looking to rob you blind. If you don't like having to deal with them, don't apply for that Best Buy credit card and save up the $1200 for that surround sound system you just 'have to have' instead of paying 17% interest for it....

I know it sucks, I'm not saying it's not - just my $.02

Great post!

With respect, I must disagree on some points.

The BANKS are the ones pushing the credit on people who can't afford it to begin with. Yeah, people are greedy, they want everything immediately because they're like 2 y old who can't stand having to wait for something, I know, I know. But greed goes both ways and the banks are not blameless.

This poster above was saying he has *unlimited* credit on his Visa. Unlimitted? Really?!! Wow!!! Isn't that a little risky? Whatever happened to extending the kind of credit people can afford to pay back?!!

I'm especially upset at the concept that if some deadbeat skips town without paying their $10,000 debt at the mall, I, as a responsible consumer who pays my credit card bill off every month, have to pick up the pieces.

As to people not needing a credit card, it's not entirely true. A credit card is like that 5th tire you keep in the back of your car. Just in case. You never know, unexpected doctor bills, or you lost your job but have to bring food home while you're looking for another one, etc.

[ddongbap]

So.... anyone consider NOT using them?

[yaris-me]

Originally Posted by Yaris Hilton

No false information. That's why I dropped it, as I said, years ago.

I mainly use a Discover card now, with a Visa backup.

Years ago, I can say the same about Visa and Discover. The people getting screwed over now are not with AmEx.

[yaris-me]

Originally Posted by ddongbap

So.... anyone consider NOT using them?

There will always be cash, but the trend is towards electronic money. Eventually you will carry an ID chip and not have to carry cash.

[kustom play]

Originally Posted by tomato

Great post!

With respect, I must disagree on some points.

The BANKS are the ones pushing the credit on people who can't afford it to begin with. Yeah, people are greedy, they want everything immediately because they're like 2 y old who can't stand having to wait for something, I know, I know. But greed goes both ways and the banks are not blameless.

This poster above was saying he has *unlimited* credit on his Visa. Unlimitted? Really?!! Wow!!! Isn't that a little risky? Whatever happened to extending the kind of credit people can afford to pay back?!!

I'm especially upset at the concept that if some deadbeat skips town without paying their $10,000 debt at the mall, I, as a responsible consumer who pays my credit card bill off every month, have to pick up the pieces.

As to people not needing a credit card, it's not entirely true. A credit card is like that 5th tire you keep in the back of your car. Just in case. You never know, unexpected doctor bills, or you lost your job but have to bring food home while you're looking for another one, etc.

i would totally agree

they give me an unlimited limit... so i can go just buy a 40K lexus tomorrow on my card

can I affored to do that? no!

are there some people who see that and then go "YES!!!!! BUY NOW!!!"

I would think most of us know enough not to rack up what we can not afford but there are some people who just cant handle it and live above what they can afford

all they want is your money, they dont care if you can afford it or not, they want you to be dumb enough to charge what you cant afford so they make money off the interest.

[DevilGirl]

Originally Posted by tomato

As to people not needing a credit card, it's not entirely true. A credit card is like that 5th tire you keep in the back of your car. Just in case. You never know, unexpected doctor bills, or you lost your job but have to bring food home while you're looking for another one, etc.

More so than that, if you want to travel at all, stay at a hotel, book a flight, rent a car, or even some every day activities, you need some form of card, whether that is debit or credit.

I have been in several situations where, even though it is a card, they would not accept a debit card. It had to be a credit card. Even running it through as credit as opposed to debit, it was declined, because it was not actually a credit card. Granted, those are far and few between, but they still do occur.

[tomato]

Originally Posted by DevilGirl

More so than that, if you want to travel at all, stay at a hotel, book a flight, rent a car, or even some every day activities, you need some form of card, whether that is debit or credit.

I have been in several situations where, even though it is a card, they would not accept a debit card. It had to be a credit card. Even running it through as credit as opposed to debit, it was declined, because it was not actually a credit card. Granted, those are far and few between, but they still do occur.

That's true. I didn't want to bring up the case of people who travel because I realize that's not the majority of people, but yeah, you kind of need it.

Also, in some cases, a credit card is viewed as an acceptable form of ID, when they ask you for 2 form of ID's and you only have your driver's license on you, they'll take a credit card as proof of ID (Yeah, I know, doesn't make sense but they do here). It's either that or walking around with your passport or birth certificate

[TinyGiant]

Originally Posted by ddongbap

So.... anyone consider NOT using them?

now that the wife and I have the house and car. I hope to pay off the credit cards and maybe have one for emergencies.

but i look forward to a time where i dont have any debt.. again. the money we have on the cards now was for emergency car repairs and some business stuff .. i cant wait to kill that drain on my finances :)


once you get the house and car you really dont need "credit" thats the only reason you build up "credit"

[JBougie]

Originally Posted by tomato

Great post!

With respect, I must disagree on some points.

The BANKS are the ones pushing the credit on people who can't afford it to begin with. Yeah, people are greedy, they want everything immediately because they're like 2 y old who can't stand having to wait for something, I know, I know. But greed goes both ways and the banks are not blameless.

This poster above was saying he has *unlimited* credit on his Visa. Unlimitted? Really?!! Wow!!! Isn't that a little risky? Whatever happened to extending the kind of credit people can afford to pay back?!!

I'm especially upset at the concept that if some deadbeat skips town without paying their $10,000 debt at the mall, I, as a responsible consumer who pays my credit card bill off every month, have to pick up the pieces.

As to people not needing a credit card, it's not entirely true. A credit card is like that 5th tire you keep in the back of your car. Just in case. You never know, unexpected doctor bills, or you lost your job but have to bring food home while you're looking for another one, etc.

I fully agree. It is absolute crap. But, they don't have much of a choice - it's either go broke and not let anyone borrow anything or raise other things here and there to help continue the lending of monies.

And unlimited credit cards are ridiculous - they are absolutely asking for trouble when they hand those things out! I don't even want to know the damage I would do with an unlimited credit card ... lol ... they pray for people like me to get ahold of one, I'll be in debt and paying them off for the rest of my life!!

[JBougie]

Originally Posted by kustom play

i would totally agree

they give me an unlimited limit... so i can go just buy a 40K lexus tomorrow on my card

can I affored to do that? no!

are there some people who see that and then go "YES!!!!! BUY NOW!!!"

I would think most of us know enough not to rack up what we can not afford but there are some people who just cant handle it and live above what they can afford


all they want is your money, they dont care if you can afford it or not, they want you to be dumb enough to charge what you cant afford so they make money off the interest.

The 325,000+ active Bankruptcy files that my company monitors right now says drastically different .... lol

[kustom play]

thats sad

ive never carried a balance on a credit card from month to month

people just cant be happy with what they got, or with what they can afford i guess

[2+2]

I'm sure there are many, many cases of people living beyond their means and running up a hefty credit card bill.

A lot of time though it's just people buying necessities during tough times like maybe a layoff. If they don't get called back to work and have to accept a crap job the credit card debt doesn't just go away. Why do corps get to skate on debt though bankruptcy and individuals usually can't? Corps have 1st amendment rights just like individuals why don't they have obligations like individuals?

[DevilGirl]

Originally Posted by 2+2

A lot of time though it's just people buying necessities during tough times like maybe a layoff. If they don't get called back to work and have to accept a crap job the credit card debt doesn't just go away.

This is very true. That's how my credit debt started. I lost a job, took a few months to find a new one, had an apartment I had to pay rent on (used my savings for that), but all other bills and necessities went on the card. It's been hellish trying to get back on track (since 2004). Thankfully I now have a good job, and shortly will be eligible for working overtime, which I plan to take great advantage of in order to bring more money in to pay it off a little quicker.

[yaris-me]

Originally Posted by JBougie

There is NO reason that people should rely on credit cards - we live in a 'who cares if I don't have the money, I want it' society and have dug ourselves into it. Everyone falls into it at one point of time or another, but you can't just say it's the banks fault - there is way more to it than what is on the surface. (*I know a lot of people don't do that, but 95% of Americans do). I don't have a credit card and don't want one because I would be that person sitting at the mall racking up everything I see - especially since I have a fetish for designer bags :)

I work in the Bankruptcy/Foreclosure industry, so I have learned a great deal about the behind-the-scenes things that go on. The banks aren't horrible people just looking to rob you blind. If you don't like having to deal with them, don't apply for that Best Buy credit card and save up the $1200 for that surround sound system you just 'have to have' instead of paying 17% interest for it....

I know it sucks, I'm not saying it's not - just my $.02

Very insightful, but who is this 95% or is it 5%? So what is the future for the creditor? I know that many people will walk away from paying their debt.

[YarisSedan]

There was a time when i wanted a credit card. And my whole life i payed everything with cash. So i was declined everywhere. Their explination was insufficient credit history. Well duh thats the whole point of me getting a credit card. Even department stores would declined me.

[Kioshi]

Just use your debit card and charge as credit. Keep sufficient funds on it and never go overboard.... thats how i started out and started getting credit offers in the mail..then i went downhill, because of school...