A problem with so many Americans is that they have too much credit card debt -- despite the high interest rates charged and the myriad of credit card company rules. And it has gotten so much worse in the last 10 to 15 years. Do you know what's going to happen if credit card companies lower their interest rates and make their rules more consumer friendly ? Common sense/logic says LOTS MORE CREDIT CARD DEBT -- worsening this debt problem for so many Americans. Regardless of new government regulations, credit cards are still going to be a bad deal for so many people. So, if you don't like credit card rules, don't use credit cards. Sure there are exceptions to this rule for extraordinary situations -- unexpected & high medical bills, for example.

For the record, I don't work for a credit card company, and quite often I use my credit card for my business always paying off the balance in full.

What's worse?

Using a loan shark...or being a loan shark?

Offering a bad product doesnt absolve one from responsibility of knowing its bad and using it anyway...

Up front, I collect credit card debt. While it's easy (and Darwinian), to say that stupid people deserve what happens to them - it's a little more complicated. In the old days you saved your money for a vacation, used the credit card (instead of travelers' checks) and paid it off when you returned. Your medical expenses were paid by insurance or were minimal. If you needed a pizza, you paid cash, or went without. You purchased your groceries with cash, food stamps - or were forced to get a second job.

But now we have created the drug of the consumer society and let the genie out of the bottle. Just like with the promise of the 401k, the future is always brighter, you will still have your job, a raise or a better job.

These things have all been now shown to be just illusions - and a lot of well meaning people were taking risks that they shouldn't. Not because they were stupid, but because they were told it was OK.

Re Dr Britesnide's comment - I don't know why he's picking on loan sharks. They appear generally to be honest and forthright in their dealing with their customers than the banks are.

Your medical expenses were paid by insurance or were minimal. If you needed a pizza, you paid cash, or went without. You purchased your groceries with cash, food stamps - or were forced to get a second job. - also called being responsible and a good steward

These things have all been now shown to be just illusions - and a lot of well meaning people were taking risks that they shouldn't. Not because they were stupid, but because they were told it was OK. - they were always illusions and those who took risks never dreamed of the consequences if something devestatingly bad occurred. They have gotten away from being responsible and have rolled the dice, knowing full well the "deal" they were making with these people. Now they're crying foul...Yes reform needs to occur and cheating people is a bad thing and should be corrected, but many get credit cards because they cant wait to have or cant save to have cetain things. Then when the bill comes...shock and suprise...

They're not stupid...they're irresponsible, some knowingly so and I dont know which is worse.

You know exactly what your signing on for...

"Just like with the promise of the 401k"

Yeah, that whole saving-and-investing for yourself thing... what a scam that is.

But they should be forced to become one and the same, the only way we get the honesty up front.

Of course, I'm also not sure if loan sharks disclose at disbursement time that the penalty for non-payment is a busted knee cap or two.

That you can pay off the balance in full. One of these days, the companies will find a way to punish you for that, too.

As happy as I am for you that you still have your business, try to imagine what happens when you've lost one, or a job, medical benefits for your whole family from your job, and no jobs out there that have any hope of the salary you had, much less the benefits. At that point, with so much less income, just a late payment causes a major catastrophe for that card, huge late fee, tripled to a ridulously usury rate now, and then you're kid eats some USDA inspected peanut butter and ends up fighting for his life with no medical insurance. Do you let him die or charge to your limit on any card you still have?

What is going to happen and what the card companies know is that a lot of people now know just what mendacious crooks they were dealing with and that a job is not a promise from any company to keep you in it, and if Obama can manage to turn things around and they can find good jobs again, they are going to live more simply, and if they take his message to heart, they are going to find other things for living well than crass consumerism.

"At that point, with so much less income, just a late payment causes a major catastrophe for that card, huge late fee, tripled to a ridulously usury rate now, and then you're get eats some USDA inspected peanut butter and ends up fighting for his life with no medical insurance."

Evil ol' card issuers, evil ol' USDA, evil ol' doctors... yep, that's it alright, that right there.

conservillectual:

Offering a bad product doesnt absolve one from responsibility of knowing its bad and using it anyway...

If the only product that's offered is bad, and it's used becuse it's the only thing available, I think the responsibility lay with the product not the consumer.

thewolf05827:

"At that point, with so much less income, just a late payment causes a major catastrophe for that card, huge late fee, tripled to a ridulously usury rate now, and then you're get eats some USDA inspected peanut butter and ends up fighting for his life with no medical insurance."

Evil ol' card issuers, evil ol' USDA, evil ol' doctors... yep, that's it alright, that right there.

Another simplistic explanation...

problem solved.

had credit card debt prior to this recession? I dont have the numbers but I guarantee the total amount of personal cc debt wasnt accrued post-recession.

If you don't take that out of the context of my post, you can see I understand how the card holder is also responsible for that decision. But I'm glad you're here as a go-to guy for the purity of the credit-card companies in their actions, the infallibility of the USDA, and I'm not sure why you threw doctors in there, maybe for word count?

And the subject line of my post was meant to be How Groovy for You, meaning the top poster's fortunes and good stewardship of his money, I may have responded to you by mistake and without changing the subject line. My mistake.