Does anyone else eschew credit?

People are given the choice to opt of out changes in terms.

It is going to get a whole lot worse in the next 7 months. Thank our Congress for that.

The unintended consequences of this bill is what is biting people in the ass right now. It's like Congress didn't believe the CC executives when they said that based on their current business models, if you enact these rules, we'll have to penalize our existing customers MORE to maintain profitibility.

Close to one in four households now pay more than 20% interest. And households charged late fees paid an average of four fees during a 12-month period.

maporsche wrote:

The unintended consequences of this bill is what is biting people in the ass right now. It's like Congress didn't believe the CC executives when they said that based on their current business models, if you enact these rules, we'll have to penalize our existing customers MORE to maintain profitibility.

But their current business model is to enslave people by teasing them into debt and then doing whatever it takes to prevent them from getting out of it, thereby providing a constant and ever-growing source of income for the companies. The mistake the Congress and the Treasury made was giving them such a long time to comply. It's the only industry that is allowed to change the terms on their customers at will. And don't kid yourself about being able to opt out. From our experience, once you've opted out of a rate increase the companies begin using an elaborate set of tactics to force you into a default rate -- like changing your due date without notice and not sending statements. The amount of time it takes to keep up with the trickery is mind boggling. This is not a valid business model and all done in the name of profits is not legitimate. I blame the government not for what they enacted but because they gave the credit card companies time to find new ways to screw us before the laws come into effect.

Meanwhile those who genuinely would like to protect people from their own stupidity should redouble their efforts on educating people how to use credit wisely, how they can be suckered into unwise contracts, how to protect themselves, etc.

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Meanwhile those who genuinely would like to protect people from their own stupidity should redouble their efforts on educating people how to use credit wisely, how they can be suckered into unwise contracts, how to protect themselves, etc.

a few decades back we tried to educate Americans during middle and high school years, but with all of the turmoil and demands made upon education this has fallen by the boards. The current thinking is that glorified full disclosure will work, with the providers of credit being made by law to point out the terms and to say a few words about risk. I don't think that the seller can be relied upon to point out stuff that is not in their interest, I am to cynical about greed to believe that this will happen in any meaningful way.

My current thinking is that mandatory credit counseling is the way to go. Ideally I would like to make everyone go through it, but maybe we can make it so that anyone who gets into trouble would be required to take it. Miss a payment, and either need to take the course or else prove that you have taken one during the last five years....that sort of thing.

Meanwhile those who genuinely would like to protect people from their own stupidity should redouble their efforts on educating people how to use credit wisely, how they can be suckered into unwise contracts, how to protect themselves, etc.

Foxfyre wrote:

Meanwhile those who genuinely would like to protect people from their own stupidity should redouble their efforts on educating people how to use credit wisely, how they can be suckered into unwise contracts, how to protect themselves, etc.

Unfortunately, with the current state of things, the only wise use of credit cards is not to use them, or at least not to carry a balance. That's what we tell our children. There is a fundamental conflict, though, with credit card companies in that if we all use credit wisely they will not stay in business. Any time you enter into a contract with another party that the other party can change at will and retroactively, you entering into a form of slavery.

For that matter the government can and should require that all its own bills and legislation should provide full disclosure and be written in plain English and in words that the average voter can read and understand and in a font and format that only the most indifferent or stupid would overlook.

I think there is wise use of credit cards. I think it is wise to use a credit card for major purchases and for airline tickets etc. for the extra insurance provided, and it also greatly simplifies the process of purchasing airline tickets, renting a car, making motel reservations etc. that would be more complicated and/or inconvenient otherwise. I think it is wise to use a credit card for certain products and services because you can stop payment if the product or service is not delivered as agreed. The convenience of using credit cards for fuel and other travel expenses is obvious as you need to carry much less cash and the credit card company keeps a tally of your expenses to boot.

The free market usually does work to everybody's benefit if sufficiently regulated to prevent people from doing economic violence to people but is otherwise left alone. So yes, usurous interest rates should not be allowed, and there should be full disclosure in readable language and print of what the customer can expect from the credit card company. And parents should be teaching their kids how to use credit responsibly.

But the price is too high to give the government power to protect us from all our own incompetence or excesses.