When is enough, enough already? 79.9% credit cards?

[housemouse]

http://www.usatoday.com/money/perfi/credit/2009-12-17-subprime-credit-card-apr_N.htm?csp=34

 

[bgohre]

Personally, I have no problem with it. If you don't like the terms, don't get the card. Last I checked we still live in America, nobody is forcing you to get that card.

 

[natenapril]

Crazy! I can't imagine being so desperate for a crdit card to even think of agreeing to those terms. It's very sad that companies are getting away with this.

 

[kellia]

OMG!! I agree, if they sign up for it with those terms, that is their choice. I feel sorry for anyone who is that desperate or doesn't read/understand the terms they are getting into. What angers me is the cc's who change the rates/terms for those who already have a balance, that isn't right.

 

[housemouse]

Personally, I have no problem with it. If you don't like the terms, don't get the card. Last I checked we still live in America, nobody is forcing you to get that card.

I have a problem wth a company preying on people who do not have the intelligence to realize what they're getting into. And that's who this card will be targeted to. IQ is a range. Not everyone in America is blessed to be in the average or above range

 

[eliza61]

Personally, I have no problem with it. If you don't like the terms, don't get the card. Last I checked we still live in America, nobody is forcing you to get that card.

That's not the problem, bghore.

The reason the banks claim good customers are seeing their rates skyrocket is because so many people are defaulting on their loans.

So why the hell would you lend money to people who you know are not going to pay it back?
All this is going to do is enable people who should not get credit in the first place, get money they cannot afford. Then when they can't pay it back (and let's be honest, if they could not pay it back at normal interest rates, how the heck are they going to pay back these loan sharking terms) the banks will turn around and once again penalize good customers.

Banks do not operate in a insular environment, if they have bad debts to cover they will get the good customers to cover those bad debts.
So if you personally have no problem paying for other peoples debt, I've got a few I'd be more than happy to send over.

 

[mommyof2princesses]

I just saw that story on Yahoo. That is nuts! It is sad that companies can do things like that. I am glad I have built up my credit and don't need to give any company and bank fees or interest!

 

[allyphoe]

Still a better deal than a Refund Anticipation Loan, and those have virtually no risk of default.

 

[bgohre]

That's not the problem, bghore.

The reason the banks claim good customers are seeing their rates skyrocket is because so many people are defaulting on their loans.

So why the hell would you lend money to people who you know are not going to pay it back?
All this is going to do is enable people who should not get credit in the first place, get money they cannot afford. Then when they can't pay it back (and let's be honest, if they could not pay it back at normal interest rates, how the heck are they going to pay back these loan sharking terms) the banks will turn around and once again penalize good customers.

Banks do not operate in a insular environment, if they have bad debts to cover they will get the good customers to cover those bad debts.
So if you personally have no problem paying for other peoples debt, I've got a few I'd be more than happy to send over.

I think you are taking some big liberties with my post and reading an awful lot into it.

I believe you and I are on the same side of this arguement, and never said I wanted to pay for other peoples debt. I do that enough already, I don't need yours.

My wife and I go to work everyday, struggle every month to pay all of our own bills. By being a responsible citizen, we are left us holding the bag for those that are not.

Do I think they should be offering credit to people that can't pay it back, NO. But if they are offering a card with XX amount interest and somebody gets it, that's their problem. They argreed to it.

 

[princessmom29]

I think you are taking some big liberties with my post and reading an awful lot into it.

I believe you and I are on the same side of this arguement, and never said I wanted to pay for other peoples debt. I do that enough already, I don't need yours.

My wife and I go to work everyday, struggle every month to pay all of our own bills. By being a responsible citizen, we are left us holding the bag for those that are not.

Do I think they should be offering credit to people that can't pay it back, NO. But if they are offering a card with XX amount interest and somebody gets it, that's their problem. They argreed to it.

Yes, it is their problem, but it becomes yours and mine when they default, whith they enevitably will. The banks are not eating the bad debt. They are passing in on to the people that actually pay them by increasing interest rates and fees. Bakns shouldn't be allowed to lend to people who are not credit worthy. It is underhanded at best and theft at worst. theft from those of us who actually pay our bills.

 

[eliza61]

I think you are taking some big liberties with my post and reading an awful lot into it.

I believe you and I are on the same side of this arguement, and never said I wanted to pay for other peoples debt. I do that enough already, I don't need yours.

My wife and I go to work everyday, struggle every month to pay all of our own bills. By being a responsible citizen, we are left us holding the bag for those that are not.

Do I think they should be offering credit to people that can't pay it back, NO. But if they are offering a card with XX amount interest and somebody gets it, that's their problem. They argreed to it.

Sorry, the "my debt" thing was a little humor.

My point is that it is not "just" their problem. You, your wife, me and anyone who uses credit responsibly PAY for it. That's why we have a right to speak up.
Our (good customers) rates have been going up. The banks have come out and said it is flat out caused by unpaid credit card debt. So we can no longer say "their problem, they agreed to it".

When the banks have said loud and clear that they are going to get their money one way or another, we should be asking why they have a business model that lends to people who they know are not going to pay them back?

Lastly, the more defaults a bank has on it's books the weaker the bank is, that leads to it's being unable to borrow money from other banks. . Utimately that means credit becomes harder and harder to obtain and we can see how that already is slowing down economic growth.
How do you think this entire bailout thing got started? banks made millions of risky loans (mortgages) that they bundled and sold to other banks. (yes I know it's more complicated than that but that covers it pretty well in a nutshell)

It's like a huge snowball that's rolling downhill gobbling up every thing in it's path. Too knowingly repeat the same practices that cause an economic meltdown is beyond irresponsible.

We have got to stop dismissing stuff with "it's not in my backyard" because as you can see, it gets everybody.

 

[DisneyNut4Life]

That is just crazy and asking for debit problems!! Sad that some people will actually try and get the card!