What is Digg?156 Comments
- inactive, on 08/13/2008, -1/+36this makes me think of fight club and how they wanted to blow up the banks so that everyone's debts are reset.
- AmyVernon, on 08/13/2008, -1/+25I remember when I didn't carry a balance, I would get letters constantly telling me how my interest rate was going down, down, down. Then, when I had some problems and started carrying a balance, I discovered, much to my (unpleasant) surprise, that the rates were going up, it just said so in very teensy print. Grrr ::shakes fist""
- OfNumbers, on 08/13/2008, -2/+24Don't promise away $10,000 for an LG flatscreen when you don't have the money.
- DarkStar3333, on 08/13/2008, -8/+29People tend to forget that buying on credit is using money they don't have for goods they want/need now. However like any other finance tool you need to use it responsibly, this alone is what 80% of people have a hard time doing.
If you dont want to pay "high fees" then don't carry a balance past 20 days. If you really must spend more then you can afford, negotiate a low personal loan rate with your bank to reduce the total interest paid. If the bank isnt willing to loan you the money its a good sign your living far outside of your means.
In the 7 years I have had my Visa and 5 I have had my Mastercard I have yet to give them a cent. Frankly I make money back by taking advantage of the no annual fee, 2% divend and extended warranty portions of my cards.
I don't see the problem with credit card company because but rather those who do not understand how to live in a reponsible manner. - kitci, on 08/13/2008, -3/+21i just had a telephone argument with the credit card company yesterday when they suddenly cut my credit limit in half and now they are forcing me to pay whatever is over my credit limit by the next due date... that's totally unfair!
- FamousAnus, on 08/13/2008, -0/+16The first thing I did when I got out of college was get out of debt as soon as I possibly could. Just don't spend money that you don't have to...and do some cost/benefit analysis on the things you'd like to buy.
It took a long time, and it sucked driving an old Pontiac with 140,000+ miles on it and living in a shoebox apartment while people I graduated with were going out and getting their new BMW's and luxury homes.
But if you have the patience to do that, and can invest 5 or 10 years in being very practical...you'll generally be the one laughing in the end. Now, many of those same people are upside down on their car loans and their McMansions aren't exactly holding their value well.
As for me...I sleep pretty well at night. - Cancerkitty, on 08/13/2008, -1/+17My biggest gripe with the credit card companies is their inability to process things. It took me four months and about twenty phone calls to get an American Express account canceled. It was stupefying.
- katorga, on 08/13/2008, -1/+14Rates are raised "punitively", that is the punishment for not paying on time, and credit card companies such as VISA or MC, do not set the rate policies...the issuing bank does. Cardholders accept the rule that the rules can change at any time, when they sign their name on the cardholder agreement. It appears the poster doesn't understand how credit cards work.
Since just about everyone is eligible for a credit card, the terms are going to be harsh. Credit card debt is high risk debt.
Pay off your debt every month or simply don't carry revolving credit if you cannot handle the rates. Just doing that on a mass scale would have more impact on how the issuing banks package the product than any government legislation. - minorthreat, on 08/13/2008, -0/+13how? Are you crazy. Don't buy ***** you can't afford. don't go in debt. Everyone you see driving fancy cars, big houses, rolodex watches. 99% don't own that *****. The bank does. I would personally rather be free with no debt and sitting on some cash opposed to spending every nickel(that I don't even have) to impress my neighbors. They are acting like nothing more than big children, just buying what the ads tell them to. If you want something, save your money for it. When you spend it and actually own it, you will feel alot better about yourself and actually cherish your possessions.
- tomasII, on 08/13/2008, -0/+12I do not carry a balance on any of my cards. So, I use them instead of letting them use me.
But for those who do carry a balance credit card companies are just a little less ethincal than the mob loan sharks. They use predatory tactics and the interest rates that used to be called usery. - thrasher6670, on 08/13/2008, -2/+14I just don't spend money i don't have.. I use credit cards all the time because i buy everything online. but i pay it at the ned of the month every time. for all it matters to me they could have 10,000% interest. I treat my credit cards not as loans but as a way to pay for something easily without having to hand over cash. don't spend what you don't have.
- xtothepowerofx, on 08/13/2008, -0/+11dugg for rolodex watch :)
but I agree to a certain extent that there is a lack of personal accountability these days. people don't see anything as their own fault anymore. - inactive, on 08/13/2008, -0/+10Of course, that's actually on purpose. They didn't want to lose the profit they were making off you.
- inactive, on 08/13/2008, -1/+8I made ONE late payment (by four days) on my Chase Mastercard.
My APR jumped from 4% to 30%.
I think it has a lot to do with my age. If I weren't a college student, I feel like they would be doing more to make sure that I'm a happy customer. - inactive, on 08/13/2008, -5/+12Who the hell is Stephan? My tence is fight!
- aladrin, on 08/13/2008, -1/+8Exactly. In the 10+ years I've been using credit cards, I've only paid interest a few times, and it's usually because I just plain overspent. But each time, it was a conscious decision to pay the interest (for 1 month) in order get what I wanted right away.
These people complaining about the Credit Card companies being loan sharks have forgotten that they signed a contract to get that card. Obey the rules of the contract and none of these problems exist.
Personally, I love the fact that these people let the CC companies screw them. It means good rates for me (since I don't violate the rules, I don't pay the penalty of higher rates) and no monthly/yearly fees, like there used to be. -Someone- has to pay for the CC companies to exist, and I'm glad it isn't me. - SocialPoison, on 08/13/2008, -0/+6House debt hardly counts, either. This article is about credit card debt.
And seriously though, if you can't afford to buy a house then DON'T... it really is that simple. - NegativeDigg, on 08/13/2008, -0/+6Well you kinda do need lines of credit even if you don't use them. You need to build credit to buy big ticket items like a home or car.
- coreyb, on 08/13/2008, -1/+7I don't have a CC for the simple reason that if I don't have the money at the time of purchase, I don't need it.
But I do agree that card companies are raping CC holders... - TTURabble, on 08/13/2008, -0/+5There's a difference between Credit Card debt to buy a fancy TV and a Mortgage to buy a House. But then again, some people will also spend more than they can afford when buying a house. (maybe you should have rented an apartment or gotten a cheaper house)
- vvortex3, on 08/13/2008, -1/+6Fight Club approach FTW!
- bigfinger, on 08/13/2008, -0/+5At what point is an interest rate high enough to be considered loan sharking?
- pingpants, on 08/13/2008, -3/+8Hey, "loan sharks," "crooks," "leaches" and "usury," allow me to introduce you to Project Mayhem. We're here to read you the Credit Cardholders' Bill of Rights.
- chuckDontSurf, on 08/13/2008, -1/+6Wish i could digg you multiple times. Good post.
- Midtowner, on 08/13/2008, -0/+5Did you ever see that SNL skit called "If you can't afford it, don't buy it"?
One rule to live by! - PhantomZmoove, on 08/13/2008, -0/+5He said his rate was going down when he didn't have a balance, then they started jacking it up when he carried one over from month to month. I'm sure they probably increased his limit when they noticed he was spending more, but tried to screw him over with the higher % rate.
- AlaskaLoneWolf, on 08/13/2008, -1/+6Don't tempt me. The insurance companies should be in there too, along with the petroleum companies:
http://en.wikipedia.org/wiki/Usury
http://en.wikipedia.org/wiki/Debtor's_prison
http://www.thefreedictionary.com/highway+robbery - talkingtiki, on 08/13/2008, -0/+5Yep had the same thing happen. I applied for the no fees card, they sent me the $100 per year card. I said no thanks, never activated it, and cancelled the account. 6 months later the sent me to a collections agency. I sent a nice letter to the agency and it was resolved when they had proof I never activated the card which means I didn't consent to the account.
- mrjit, on 08/13/2008, -0/+4Sounds like AOL.
- aksn1p3r, on 08/13/2008, -5/+9Best to be debt free...but how?!
- louiebaur, on 08/13/2008, -3/+7I hope this helps with the rediculous credit card rates
- Br3ach, on 08/13/2008, -0/+4I await the day I miss a credit payment and get a call from the bank that ends with "or these guys are going to take your balls"
- thrasher6670, on 08/13/2008, -0/+4I love my Canadian Tire money credit card. free power tools!
- inactive, on 08/13/2008, -0/+4@Narcism
The bank representatives have all been lying to you. The process of cancelling/opening credit card accounts can have a negative effect on your credit depending on several things (multiple inquiries, decreasing your available credit/current debt ratio, decreasing total lines of credit, etc.). - Nerys, on 08/13/2008, -0/+4"Credit-card firms say restricting their ability to raise interest rates on existing balances would prevent them from adjusting the rate to reflect the higher risk of a consumer defaulting."
Except that by RAISING the interest rate THEY INCITE the very higher risk they complain that supports the higher risk. IE they intentionally Create the very problem they claim they are trying to avoid. IE the increased interest rate IS the very reason that people end up floundering on the very bill that the CC company is worried about the risk of. The make there own problem. They figure the amount of interest you end up paying at the hiked rates before you default will be at least as much as you owe and then if you default they lose technically NOTHING since you have already paid the balance likely several times over yet they can not still CLAIM you owe and anything extra they get is BONUS and your life is ruined in the process. How nice of them.
Filthy Criminals.
IE I would not have a problem paying off a card with a 10% interest rate. But when the interest is SO HIGH that your payments pretty much just pay interest???
Would I ever get another CC now? hell no. EVIL things they are. Criminal Organizations is what they are. Alas when I was in college at 17 it was easy to get sucked in being uneducated on the issues and potential. It was just so easy.
These are criminal organizations and they should be handled as such. I do not care WHAT it does to my credit score as I pay these off I will shred them and mail them back to the companies.
Interest should be FORBIDDEN from going above 10% fees should NEVER go above $10 per fee and on top of that they should not be allowed to "cascade" and should NEVER be allowed to be larger than the offense in question.
BANKS should be forbidden from FORCING you to accepts a "micro loan" if you overdraw the account. You should be able to have this turned off so over charges get DECLINED instead of accepted (which is how it worked JUST FINE for over ten years) Until they realized they could make a lot more money by FORCING these overdraws and charging insane fees for it.
I once overdrew an account by $1.50 and got charged $140 for it! The bank charged me a $35 INS Fee and returned the CC payment. THE CC company charged me "3" fees $35 Return Check $35 Late Payment and $35 Over Draw.
How this is remotely legal is beyond my ability to comprehend. - CobaltBlue, on 08/13/2008, -0/+4A 54 story, $1 billion dollar skyscraper in Manhattan doesn't build itself.
- agent888, on 08/13/2008, -0/+4I worked as a summer intern for IBM at a main American express data center. I always laugh when I think of fight club, cause in reality....at least in Amex's case....you cant get a vehicle within 20 feet of that building. There isn't even a way in on the first floor....just what they called a bomb wall surrounding it.
- louiebaur, on 08/13/2008, -3/+7That was cool and a great way to handle debt.. hey Tyler Durden lets just make it go away..
- Narcism, on 08/13/2008, -1/+5If there are going to be rules for preventing people from being retards, I can think of a lot more areas to start with rather then credit cards.
- cyclades, on 08/13/2008, -3/+7I say it on every banking/credit story and I haven't changed my opinion.
Banks and credit card companies are scumbags and rip-off merchants.
Bury me all you want/ Doesn't change the facts. - SanTe, on 08/13/2008, -0/+4Rates, not limit.
- Rikkochet, on 08/13/2008, -0/+4I disagree with calling them idiots. If they know they aren't able to handle the freedom and temptation that comes with a substantial amount of instant credit and knowingly deny themselves the chance of a downward spiral of debt, I'd say they're smarter than you or I.
- FredFredrickson, on 08/13/2008, -1/+5Who cares why they do it - the important lesson here is to never put more on your card than you can afford to py that month. Need more money? Don't use a credit card. Simple.
- FredFredrickson, on 08/13/2008, -2/+6Consumers complaining about companies that offer them more money than they can afford to borrow, and then asking for yet more money back? Preposterous!
I'm all for rooting out all the predatory lending practices that creditors use to work people over, but I'm also sick of people complaining about how much debt they are in as the result of poor credit management. You're the imbecile who keeps whipping out the plastic to buy designer jeans - nobody from the credit card company is forcing you to do that. - Slizzo, on 08/13/2008, -1/+4How about arbitrarily raising interest rates on credit card holders with good->great credit scores?
My live-in girlfriend had a Capital One credit card at an interest rate of 4.9%. Her limit on the card is near $10,000. She had a balance of $3,000 on the card which she paid off in the matter of 6 months. After she had paid off the balance, the card never saw balances above $500.
About 3 months after she's paid off the large balance on the card, Capital One raised her interest rate to OVER 20%! With someone with a credit score of over 750, how is it that Capital One perceived the need arbitrarily jack her rate into the ceiling while she's been a good customer for them to have? - toekneebullard, on 08/13/2008, -0/+3Credit card rates don't matter if you never carry a balance.
Don't spend money you don't have. - Grova, on 08/13/2008, -0/+3Quite right, but if you have the misfortune of having one late payment and your interest rates go from 6% to 22% in one billing cycle it still sucks.
- SocialPoison, on 08/13/2008, -0/+3There's more to that story I damn near guarantee it. 4.9% on a credit card? That's an insanely good rate. In fact... it sounds like an introductory rate. You know.. the rates they give you for a year before jacking it up.
- RomeyRome, on 08/13/2008, -0/+3Credit card companies aren't responsible for your irresponsibility. They set the rules and you decide to play ball when you sign. End of story.
- gordigor, on 08/13/2008, -0/+3Cancelling or opening new credit card accounts can have a negative affect on her credit score just because she paid off the large balance on the card!
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