that most people can not handel.
The truth is that there wasn't one American citizen who was helped in any way by the Bankruptcy Bill. Only the credit card companies and banks were helped. The fact that it's legal to assist someone in getting over their head in debt doesn't make it moral, and the Bankruptcy Bill makes it even easier for lenders to engineer debts.
Cycloptichorn
Cycloptichorn wrote:The truth is that there wasn't one American citizen who was helped in any way by the Bankruptcy Bill. Only the credit card companies and banks were helped. The fact that it's legal to assist someone in getting over their head in debt doesn't make it moral, and the Bankruptcy Bill makes it even easier for lenders to engineer debts.
Cycloptichorn
I agree with you, but it is still ultimately the debtors fault, NOT the CC companies. Unlike other amoral businesses (health insurance, big oil for example), no one NEEDS to buy something on credit.
How many people do you know who were forced to pay 29.99% interest for anything? The fact is is that NO ONE is forced to use the card, but if you do, you agree to the terms.
And there are at least a few million people employed by credit card companies who were helped by this.
Cyclo, I can't argue with anything you post (except employees seeing benefits, there are over 1000 jobs currently open in my company with pay higher than my own, and my personal pay, along with many of my associates as increased 30% in the last year). I see those numbers on our balance sheets everyday. It's no secret.
But the fault still lies with the consumer.
I sort of see it as the drunk driving argument. Sure, beer is easy to get, it's cheap, it's marketed to college kids, but it is still the person's fault if they drink too much and get behind the wheel. Sometimes they might have to drive (like if they are escaping from a rapist for example), but if a cop pulls them over, they are going to jail because it's illegal.
Credit is easy to get, and initially pretty cheap, but it's still the person's fault if they use to much and get behind on payments. Sometimes they might have to use the card (kids food), but if they break the rules, they're going to pay.
maporsche wrote:Cyclo, I can't argue with anything you post (except employees seeing benefits, there are over 1000 jobs currently open in my company with pay higher than my own, and my personal pay, along with many of my associates as increased 30% in the last year). I see those numbers on our balance sheets everyday. It's no secret.
But the fault still lies with the consumer.
I sort of see it as the drunk driving argument. Sure, beer is easy to get, it's cheap, it's marketed to college kids, but it is still the person's fault if they drink too much and get behind the wheel. Sometimes they might have to drive (like if they are escaping from a rapist for example), but if a cop pulls them over, they are going to jail because it's illegal.
Credit is easy to get, and initially pretty cheap, but it's still the person's fault if they use to much and get behind on payments. Sometimes they might have to use the card (kids food), but if they break the rules, they're going to pay.
Perhaps you aren't aware, but when it comes to drunk driving, if the bartender/restaurant which serves them alcohol violates the legal limit of what they can serve, they take responsibility as well.
That's the whole problem; the CC industry refuses to assume any sort of risk or responsibility for their poor decisions. It is easy for the poor person to get a card they can't afford and to buy things they can't afford, b/c they CC companies - and the bankruptcy bill - make it easy for people, knowing they won't be able to pay.
At one time it was understood that the CC companies wouldn't give out cards to people with bad credit, because their accounts were too risky and it was considered a bad investment. The Bankruptcy Bill changed that. Now lenders are insulated from the risks they take. There is no more Moral Risk on their part, as they can just wait and collect ever-mounting fees in perpetuity. There's no reason for them to have any sort of discrimination whatsoever when it comes to assigning credit.
I feel this is a perilous situation. What was the purpose or necessity behind raising the maximum interest rates? Who exactly is helped by this? The CC companies, and nobody else.
It would be easy enough for you to say that the fault always lies with the consumer in every case, no matter what the problem is. Obvious this isn't true. We have laws which are set up to keep people from being preyed upon by companies who are unscrupulous; the Bankruptcy Bill weakened those laws to nobody's benefit.
Credit used to be reserved for people who had something to back it up. Now that we've essentially legalized Usury, everyone has something to back it up - their future earnings. I personally have a moral problem with allowing an industry to prey upon people and somehow pretending it's entirely people's fault for being dumb enough to be preyed upon.
Cycloptichorn
Cycloptichorn wrote:maporsche wrote:Cyclo, I can't argue with anything you post (except employees seeing benefits, there are over 1000 jobs currently open in my company with pay higher than my own, and my personal pay, along with many of my associates as increased 30% in the last year). I see those numbers on our balance sheets everyday. It's no secret.
But the fault still lies with the consumer.
I sort of see it as the drunk driving argument. Sure, beer is easy to get, it's cheap, it's marketed to college kids, but it is still the person's fault if they drink too much and get behind the wheel. Sometimes they might have to drive (like if they are escaping from a rapist for example), but if a cop pulls them over, they are going to jail because it's illegal.
Credit is easy to get, and initially pretty cheap, but it's still the person's fault if they use to much and get behind on payments. Sometimes they might have to use the card (kids food), but if they break the rules, they're going to pay.
Perhaps you aren't aware, but when it comes to drunk driving, if the bartender/restaurant which serves them alcohol violates the legal limit of what they can serve, they take responsibility as well.
That's the whole problem; the CC industry refuses to assume any sort of risk or responsibility for their poor decisions. It is easy for the poor person to get a card they can't afford and to buy things they can't afford, b/c they CC companies - and the bankruptcy bill - make it easy for people, knowing they won't be able to pay.
At one time it was understood that the CC companies wouldn't give out cards to people with bad credit, because their accounts were too risky and it was considered a bad investment. The Bankruptcy Bill changed that. Now lenders are insulated from the risks they take. There is no more Moral Risk on their part, as they can just wait and collect ever-mounting fees in perpetuity. There's no reason for them to have any sort of discrimination whatsoever when it comes to assigning credit.
I feel this is a perilous situation. What was the purpose or necessity behind raising the maximum interest rates? Who exactly is helped by this? The CC companies, and nobody else.
It would be easy enough for you to say that the fault always lies with the consumer in every case, no matter what the problem is. Obvious this isn't true. We have laws which are set up to keep people from being preyed upon by companies who are unscrupulous; the Bankruptcy Bill weakened those laws to nobody's benefit.
Credit used to be reserved for people who had something to back it up. Now that we've essentially legalized Usury, everyone has something to back it up - their future earnings. I personally have a moral problem with allowing an industry to prey upon people and somehow pretending it's entirely people's fault for being dumb enough to be preyed upon.
Cycloptichorn
You make it sound like EVERYONE who is late on a payment is bumped up to 29.99% interest.
The facts are that the CC companies do take risks, and while the % of bankruptcy has decreased, the percent of charge-offs have increased. If you don't know, charge-offs are almost a complete loss to the CC company (with the exception of the tax write off hovering somewhere near 10%, and the pennies on the dollar they get for selling the debt, they still incur roughly a 85% loss on that debt).
And easy credit has it's consumer advantages as well. Say you have one of those CC at 29.99%, how hard is it to open another one and transfer the balance to a 0% for a year?
Please tell me what purchase has to be made on a credit card that could be avoided if people were more intelligent about money and what they could realistically afford? Education is the answer, but again I AGREE WITH YOU that some regulation could help.
Cycloptichorn wrote:maporsche wrote:Cyclo, I can't argue with anything you post (except employees seeing benefits, there are over 1000 jobs currently open in my company with pay higher than my own, and my personal pay, along with many of my associates as increased 30% in the last year). I see those numbers on our balance sheets everyday. It's no secret.
But the fault still lies with the consumer.
I sort of see it as the drunk driving argument. Sure, beer is easy to get, it's cheap, it's marketed to college kids, but it is still the person's fault if they drink too much and get behind the wheel. Sometimes they might have to drive (like if they are escaping from a rapist for example), but if a cop pulls them over, they are going to jail because it's illegal.
Credit is easy to get, and initially pretty cheap, but it's still the person's fault if they use to much and get behind on payments. Sometimes they might have to use the card (kids food), but if they break the rules, they're going to pay.
Perhaps you aren't aware, but when it comes to drunk driving, if the bartender/restaurant which serves them alcohol violates the legal limit of what they can serve, they take responsibility as well.
That's the whole problem; the CC industry refuses to assume any sort of risk or responsibility for their poor decisions. It is easy for the poor person to get a card they can't afford and to buy things they can't afford, b/c they CC companies - and the bankruptcy bill - make it easy for people, knowing they won't be able to pay.
At one time it was understood that the CC companies wouldn't give out cards to people with bad credit, because their accounts were too risky and it was considered a bad investment. The Bankruptcy Bill changed that. Now lenders are insulated from the risks they take. There is no more Moral Risk on their part, as they can just wait and collect ever-mounting fees in perpetuity. There's no reason for them to have any sort of discrimination whatsoever when it comes to assigning credit.
I feel this is a perilous situation. What was the purpose or necessity behind raising the maximum interest rates? Who exactly is helped by this? The CC companies, and nobody else.
It would be easy enough for you to say that the fault always lies with the consumer in every case, no matter what the problem is. Obvious this isn't true. We have laws which are set up to keep people from being preyed upon by companies who are unscrupulous; the Bankruptcy Bill weakened those laws to nobody's benefit.
Credit used to be reserved for people who had something to back it up. Now that we've essentially legalized Usury, everyone has something to back it up - their future earnings. I personally have a moral problem with allowing an industry to prey upon people and somehow pretending it's entirely people's fault for being dumb enough to be preyed upon.
Cycloptichorn
You make it sound like EVERYONE who is late on a payment is bumped up to 29.99% interest.
The facts are that the CC companies do take risks, and while the % of bankruptcy has decreased, the percent of charge-offs have increased. If you don't know, charge-offs are almost a complete loss to the CC company (with the exception of the tax write off hovering somewhere near 10%, and the pennies on the dollar they get for selling the debt, they still incur roughly a 85% loss on that debt).
And easy credit has it's consumer advantages as well. Say you have one of those CC at 29.99%, how hard is it to open another one and transfer the balance to a 0% for a year?
Please tell me what purchase has to be made on a credit card that could be avoided if people were more intelligent about money and what they could realistically afford? Education is the answer, but again I AGREE WITH YOU that some regulation could help.
The lender should be FORCED to renegiate the mortgage into a fixed rate at current market rates and not foreclose.
To begin, I think that people who are sitting at 29.9 on one card probably have a more difficult time transferring to another card at a zero balance then you might think. It isn't as if the new company can't see the rates they have on other cards. But, you probably know more about that then I do.
I think that health-care related stuff is often put on credit; many times it's sudden and unplanned and people have no other choice.
While the Bankruptcy Bill may not have been the worst bill ever passed, it in fact acted as a deregulating influence on the CC companies; a step in the wrong direction, which benefited no consumer in any way, and one which I will never forgive Biden for championing. I think it's patently wrong to support profits for Big Business over your own constituent's well being.
Here's an interesting article on the many and various ways in which the CC companies do each and every trick they can to screw cardholders out of their money:
http://www.bcsalliance.com/creditcard_profits.html
As you may be able to tell, I'm not a big fan of credit cards. They mostly exist as a method of transferring money from the poor to the rich.