Credit Card Debt

Is another shoe about to fall in the U.S.; most likely. Who will bail out the credit card companies; tax payers no doubt and just as the folks who created the sub-prime mess were not prosecuted, I doubt one credit card executive will be held accountable for the practices of the companies they lead. Now you may say that those who spend money they don’t have are at fault and that is true, but what about the companies who send cards to folks in the mail who did not ask for them, who are not credit worthy, and in some cases who are not really old enough to have a card. What about the high interest rates that the government allows the card companies to charge? What about the length of the card agreements that are getting to be the size of a mini bible? Why is this necessary if the business is upfront, clear and honest? For me personally there is only one thing I need to know. What is the interest rate and how does the card company treat their customers who are late with their payments. I am not interested in “and”, “buts,” “maybe’s" or any other ambiguous language, I just want a straight forward agreement.

Some time ago I received an offer of an American Express Blue to go with my Green card. The first is a credit card and the latter is not. I read the agreement with the Blue and was shocked. The fees for being late were what I considered of a usury nature and so I called them. The conversation went in circles. There was a large increase the first time you were late. The second time you were late there was also another large increase to the point that you were paying close to 28% at a time when the banks are offering 3% on your savings. They tried to say that the increased interest was only assessed to their bad customers. Of course, when could ask why do you renew cards to your bad customers! This was certainly not the American Express of the old days when you could only get the card if your earnings were above average and your income was checked. If credit card companies no longer do this then who do you think is responsible? I would say the credit card company. I think that anyone who has a credit card should ensure the card is working for them otherwise cut it up, you don’t need it.