Credit card companies going crazy! WTF?!

[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.