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Banks Declare War On You

Although President Obama signed into law new credit card reforms, the banks once again are going to bleed the American people before this law takes effect. Talk of higher interest rates, new and higher fees, and continued scaling back of credit will play mind games with those who live off of this credit game.

Don't you just love our society and our love for living and getting by using credit? Perpetual debt and uncontrolled spending is what got Americans into their economic woes along with living beyond their means and thinking materialistic products define who and what people are. Social status based on credit and materialistic goods has become the norm, at the same time becoming the den of economic collapse.

Consumers, brace yourselves over the next 9 months if you are a user and abuser of credit cards. You may end up owing more than your balance, pay for more ridiculous fees and pay more in the long run because of higher interest rates.

If you had a a credit card balance of $1700 and paid only the minimum payment every month, it would take you over 20 years to pay off the principle balance. Stop spending, pay off your credit cards, live in your means, save your money for things you want to buy or continue your ways and pay forever.

Here is a link to a story at MSN Money:

http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/banks-have-declared-war-on-you.aspx

Tony Toto

ISA

Nouveau Riche

Posted by Tony Toto Real Estate Investor Gurnee, IL on 05/28/2009 04:10 PM

Comments (11)

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11 Comments on Banks Declare War On You

MAY

The advice to stop living beyond our means is so important. We need to decide if we really want something bad enough if we do we need to save for it.

After reading about it from others on AR, I finally got my first notice that my credit card company was raising the rate on my credit card even though I have been a member for several years, pay on time and pay extra every single month. I'm working on paying off my credit balances as well. That's a big lesson that the current economy has taught me for sure.

This is America and we are laughed at and should be. I really think we are so brain washed that we will go back to a similar path as before, but not as severe. Americans have to keep up with the Jones for some reason. Pretty ridiculous as the Jones have no chance against the Gates.....

Public debt. Private debt. Outdoing one's parents by 35. Quarterly report planning horizons.

Those are all killing us.

And we are dragging the world down with us.

They haven't loved us much for quite a while. Now they have finally have good cause to hate us.

Our kids and grandkids kids I mean.

The rest of the world will get over it.

I'm not too sure about our offspring.

Frankly I'm not concerned about those who use credit cards as expensive loans, I'm concerned that those of us who use them for convenience and pay them off every month will also get penalized. It's been a long time since I carried around much cash but that may changed.

Tony - it is great advice to both live within your means and pay off your credit cards ASAP. It, surprisingly, doesn't take long if you make just some minor adjustments in your lifestyle.

That being said, if the Obama administration really wanted to help, they would have addressed usury and fees in general, not just for those who have chosen to overspend and now can't or won't (and there will certainly be more in the won't category now) pay their monthly bills.

Great comments.

Mike: I believe Obama had attempted to have the usury part addressed, but it was removed. The credit card/banking industry are quite powerful and are making all of this much worse. Love how BoA is getting billions from the feds and taking billions from us. The federal funds rate is practically ZERO, but many credit card interest rates have jumped up to 30%+. I can get better rates from Vito at the pool hall.

Mike and Scott,

The other day I was with a 70 year ol women with a 12,000 a year income. She had never had credit cards in her life but three years ago when her husband was sick and dying she applied for and received two to hel[ with some of the uncovered expenses. When she sowed me her bills she is paying 28.88%. She owes a little over 9,000, she pays over $260.00 amonth and 3/4 of it is interest. I am trying to convince her to try to negotiate with them but she comes from a generation that still has respect for doing the right hting. It is really sad.

Scott, you're right, the original bill was watered down. I'm surprised it actually passed, given all the banking lobbyists that were on The Hill trying to make sure it failed.

Hugh, there is no negotiating with the credit card companies. Mine continually sends mine to me late, giving me from 7-9 days to get the payment to them. They blamed bulk mail on the problem, my ass. When I asked for a 4 day payment extension because I didn't trust the payment would get to them in 7 days, they basically told me to kiss their ass. I can only imagine what they would say if I asked them to renegotiate my terms.

Third try...grrrr

Hugh: I hope that you will tell your friend of a non-profit www.creditcounseling.org that can help her with her debt. They can negotiate with the cc companies to have interest rates set to zero or something quite small and get this debt paid off. Now is not the time for pride. Help her get this fixed.

JUN

Thank you everyone for your comments!

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