What is Digg?102 Comments
- smacksaw, on 11/01/2009, -5/+39All of this stuff is the same. Credit cards, cable TV, wireless phone plans, health insurance - you name it. All of these products come up with extremely expensive and complicated options and then have to hire a bunch of people to basically ***** you out of your money.
All of these banks cry foul that people are defaulting on their debt and that they need to charge higher rates to make up for it. Why? So you can ruin more people?
How about lower interest rates and longer billing cycles? How about a semblance of REAL competition and choice? How about not acting like a cartel, but actually competing? Or even worse, being RESPONSIBLE lenders like you want your borrowers to be. - borez, on 11/01/2009, -4/+25Credit card companies = Loan sharks.
There's a certain veneer that's used to cover it up i.e. those who cover the bill at the end of the month (FTR if you do pay off at the end of the month then you're not really a valued customer to them, because you ain't making them money ) for those who don't, or can't because they lost their jobs, or can't because of some other unforeseen factor, then it's a downward debt spiral. And that my friends is how they make their money.
And... I expect to get dugg down for this. - TwinTurboMike, on 11/01/2009, -0/+20To get better rates on your credit cards and minimize fees, sign up through a credit union. In fact, do all of your banking through a credit union and stop feeding the greedy corporate banks. It will not only benefit you, but also your community who banks there as well.
- Mariokartfever, on 11/01/2009, -5/+24So cancel your card
- Kaegro, on 11/01/2009, -2/+20Between the Insurance companies and the Banks, there's not much room left to rape the people.
- SirBruce, on 11/01/2009, -0/+15Not just rates, two of my cards were cancelled due to "inactivity" before the new regulations could go into effect. They tried to cancel a third card but those guys were nice enough to send a warning first so I could use it before losing it.
- acknotSW, on 11/01/2009, -2/+15They make money on every transaction, the merchant pays it. They won't make as much money though if everyone paid their card off every month.
- acknotSW, on 11/01/2009, -0/+10I had one canceled due to "unfavorable purchase history" I've since learned that it was probably because I used the card a lot in bars.
- kefkaantakrist, on 11/01/2009, -0/+9What acknotSW said. Visa and Mastercard make money by charging a small fee to the seller for processing the transaction. The lender is the one who gets interest, and that is not always the credit card company itself.
- markingtime, on 11/01/2009, -1/+10he was basically just saying if you pay off the full balance every month, it doesn't matter what the interest rate is. you only pay interest if you leave a balance on your card.
- BossKey, on 11/01/2009, -0/+9Yup, just got a notice with my statement about a rate increase...
- Atario, on 11/01/2009, -2/+10Sure...just bend over and take it when they unilaterally change the rate of interest on money you've already borrowed.
Pretty sweet deal those credit card guys have, being able to give themselves a raise at will. Nice work if you can get it, I guess. - sangjmoon, on 11/01/2009, -7/+15I'll be frank. Anybody who continuously carries a credit card balance is a fool unless you are able to use that debt to generate more money than the interest you pay which tends to be legally impossible. If you are going to go into debt for a prolonged period, there are alternatives with far lower interest rates. If you aren't able to predict your long term debt because you can't control your spending and/or predict your income, just shred your credit cards. You need to learn to live without them because you will most likely just go into an economic death spiral. For those who just blame someone else except yourself for your credit card debt, you are why we elect people who can't stop increasing government spending and who print money like there is no tomorrow.
- borez, on 11/01/2009, -0/+8Yes I'm the same person who wrote a birthday cheque for a niece who cashed it two years later, and yes I'd forgotten about it and the account had been supposedly closed ( my bad) that wasn't the problem at the time, my problem was that the charges spiralled out of control and the bank never informed me till way later. What of it?
Also: " How dare they do exactly what they said they'd do in the terms and conditions that everyone agrees to (without reading?) when signing up."
The whole article is about the fact they are moving the goal posts after you've signed the terms and conditions. - tgc1, on 11/01/2009, -3/+11Just FYI, not everyone was careless and ran out buying flat screens and ***** with their credit cards. A ***** TON of people have lost their jobs and were otherwise responsible. But have now been unable to pay off balances that they previously would have. And seeing as since it's harder to get a job right now, more people are leaning on credit cards as a way to keep up.
I'd agree with you if the economy hadn't taken a nose dive into the ***** back in october. It's ***** brutal out there right now. - bjornski, on 11/01/2009, -1/+8@DavidTC
Hey, guess what. There's now a fee for THAT, too!
http://www.usatoday.com/money/perfi/columnist/bloc ...
"Starting next year, Bank of America will charge a small number of customers an annual fee, ranging from $29 to $99. The bank has characterized the fee as experimental. But card holders who have never carried a balance or paid late fees could be among those affected."
"Citigroup, meanwhile, has started charging annual fees to card holders who don't put more than a specific amount on their cards, typically $2,400 a year. Other banks are charging inactivity fees if customers don't use their credit cards during a specific period of time. You heard that right: You could be spanked for staying out of debt."
Doesn't matter if you pay it off every month or not. They're going to ***** you either way. - DaviDTC, on 11/01/2009, -7/+14Balance of 0 at the end of every pay period of the last 4 years, no need to look at the interest rates.
- ozzyozb, on 11/01/2009, -2/+8screw all of them I'm not paying another cent. I paid on time and was never ever late..they are not getting another cent from me...I'm filing bankruptcy and they can eat it....screw credit rating only a select few will have a good credit score in the future. people who already have enough money will be the only card holders. its all just a start to a big fall...mark my words...yeah I already know most of you will say I'm an idiot but wait til you all get your big surprise. you kept your score up for years and they decide its time to put you into the trash can...I'm bailing first and guess what...I have all kinds of extra money now.
- acknotSW, on 11/01/2009, -3/+9Anyone else find it amusing that the credit card companies themselves are going to force the American public to give up the practice of using credit as wealth?
It's going to be a painful transition, but it's a necessary step to fixing our economy. - bjornski, on 11/01/2009, -1/+7Not anymore.
http://www.usatoday.com/money/perfi/columnist/bloc ... - zippys007, on 11/01/2009, -4/+10sure you can cancel your card but it will affect your credit rating. If it didn't then there would be no problem.
- dafragsta, on 11/01/2009, -0/+5@TypicalDiggeral: STFU.
@Kaegro: No one is stopping international users from submitting international stories and digging them up. As it stands, I'd bet the vast majority of Digg users are American. Just because a site is international doesn't mean it shouldn't cater to the majority. In fact, that's pretty much Digg's mission statement. It's a democratic link sharing site. It's not much more complex than that. - evilresident, on 11/01/2009, -1/+6.... they can do that??
- Elranzer, on 11/01/2009, -3/+8Well Digg is an American site, so it's appropriate.
- thejynxed, on 11/01/2009, -0/+5I don't blame anyone for my debt, but I have a business to run and mouths to feed. I essentially have a running balance per month of $500 on my card. Computer parts, manuals, software, etc all cost money, and when you're a small business operator like myself (by small, I mean 2 employees), then you have to fund it somehow on a steady basis.
Government loans, etc are something I wish to avoid, already have enough of those leftover from school. - Metasquares, on 11/01/2009, -0/+4As someone who pays his balance off in full, and representing those of us who generally spend less than we make, the banks need us more than we need them. Let them try that sort of nonsense and we'll see what happens. And if they keep doing it, just think of the shift to a saver's mentality it may engender in the future!
- losman, on 11/01/2009, -0/+4Credit Unions can't charge more 15-16% and how many have them failed or needed bailout money. Yet when the idea of putting a cap on interest was mentioned to the Banks they all cried foul.
- codyman, on 11/01/2009, -3/+7I switched to using my debit card almost exclusively... If I can't afford it (and it's not an emergency), I shouldn't be buying it
- VitriolAndAngst, on 11/01/2009, -0/+3It was a very bright move. Why do you think the Credit Card companies pay so much for their politicians.
What you see as an unfortunate accident, is often careful planning. - bjornski, on 11/01/2009, -1/+4Because the market doesn't work that way. They will charge you the maximum "the market will bear", and then some.
What do you think they are, altruistic?
Nope. Their entire goal is to squeeze you for every thin cent they can get out of you. Period.
That' the market! Gotta love it! - alphadog, on 11/01/2009, -0/+3When the law was signed is when it should have taken effect. Giving the credit card companies 6-8 months time to jack up the rates was not the brightest move by the government. So the banks get a second stimulus package from the American people. Fot those keeping track: Banks 2; American people 0.
- scottc, on 11/01/2009, -1/+4Credit unions do rely on large banks for some services (as do smaller banks). But the point is not how they deliver the services, but that they don't profit from them. That means that, on average, you will get a better deal by using a credit union, and the portion of your money that goes to the large banks will be far less than if you dealt with them directly.
- tgc1, on 11/01/2009, -3/+6You're forgetting the Government and the Oil companies. Oh and Healthcare. Oh and about a thousand other groups trying to weasel our money out of our pockets.
- przemeklach, on 11/01/2009, -2/+5I can't wait to be done school so I can pay off all my debt and never again have to go into credit card debt. It infuriates me to know how much of my money goes towards interest. It's ludacris. Hopefully these new laws will work and make things more reasonable.
- Floobins, on 11/01/2009, -7/+10As long as you pay off your card every month, it doesn't matter what the interest rate is.
- diggopolous, on 11/01/2009, -0/+3The majority of successful people will tell you that debt is not a bad thing when used wisely. If it wasn't through student loans, personal loans, business loans, and credit cards, they would have never been able to achieve their success. I was more than willing to carry a balance now and again as long as it was less then 10%
and I did not mind paying interest as my part of the bargain for the use of their money to get over the next hurdle.
However, many commenters with good credit got jacked up to 18%, 25% for no good reason. I amongst others have zeroed out my balances and put the cards in the sock drawer in boycott.
I question the wisdom of the credit card companies because when will they realize that for excellent customers like myself, wasn't 10% of something better than 100% of nothing? Especially when the rate they get charged for borrowing from the Fed is at an alltime low? - magamiako, on 11/01/2009, -0/+3Honestly, they should be fined over this.
- 3nder99, on 11/01/2009, -0/+2Don't cancel your card, just don't use it.
- gcnaddict, on 11/01/2009, -1/+3Quick fix (I did this after Citi doubled my interest rate after they were bailed out):
It counts as a new contract. Tell them you don't agree with the new contract and that you want to be on your original contract that you signed with. They will let you do this on the condition that your card will expire without automatic renewal whenever it says it will expire on the card. If, down the road, you find that a newer contract for your card has a more agreeable interest rate, you can take it down the road with a simple phone call (though I haven't actually tried this last part. I'm just letting my card expire).
I dropped my interest rate from 16 back down to 8 by yelling at them and eventually figuring this trick out. It doesn't matter for me, though, because I've never carried a balance. It's just something I did for good measure. - bjornski, on 11/01/2009, -0/+2@evilresident
Yup.
http://www.associatedcontent.com/article/1130855/d ... - lostinseganet, on 11/01/2009, -0/+2Wow you must have a nicce credit score.
- aadyss, on 11/01/2009, -0/+23nder99,
Then they will cancel it. Why have it if you don't use it? The problem is that borrowing from the credit card at such interest rates is, if not insane, strangely bizarre. I have an no cost Amex card that I use for almost all purchases but pay it off each month. I receive $500.00 back from Amex each year. - Metasquares, on 11/01/2009, -0/+2The problem with that is that the people who pay their cards in full every month are the ones who don't *need* credit cards. While the credit card companies make no money from these cardholders, they do make money from their *use* of the cards (i.e. collecting transaction fees from merchants). Therefore, it is in their best interest to keep the customers regardless - which they certainly won't if they begin charging "responsible spender" fees, the alternative being so easy.
- bicycleman, on 11/01/2009, -0/+2America is so F*****D!
Love me some Canada!! - Elranzer, on 11/02/2009, -0/+21. Site was founded by Americans
2. Site is located in America
3. Company is located in America
4. Site's sponsors are American companies
Digg is as American as Amazon, Google and eBay. Just because it's got international users doesn't make it not American.
I read BBC Online all the time, does that mean it's not British anymore? - bjornski, on 11/01/2009, -1/+3http://www.usatoday.com/money/perfi/columnist/bloc ...
- brad3378, on 11/01/2009, -0/+2@Mariokartfever
There's no need to cancel a card if you don't carry a balance on it. - sangjmoon, on 11/01/2009, -0/+2If you can estimate your running balance that accurately and I assume you have already checked the banks for loans, have you checked out http://www.prosper.com ? This is where people lend money to people. Unless there something more to this story, I guarantee you should be able to get the cash flow you need at a lower interest rate that the credit card companies charge.
- VitriolAndAngst, on 11/01/2009, -0/+2I think the mob's loan sharks had more sensitivity and compassion than these credit card robber barons.
Just damn. Why are we still bothering with this farce that we live in a Democracy? We can't solve any problems as long as some giant mega corp makes a profit, and of course, we can't protect consumers because they are too small to succeed. - lusenok2, on 11/01/2009, -0/+2They charge every merchant 2 to 3% of each sale as a transaction fee.
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