The Real Recovery | February 18, 2010 | 27 comments

The Credit Card Trap: How U.S. Credit Card Companies Are Sucking The Financial Life Out Of The American Consumer

source: http://theeconomiccollapseblog.com/archives/the-credit-card-trap-how-u-s-credit-card-compani...

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Revelation1217
There have been very few things more damaging to American consumers over the past couple of decades than credit card debt. Easy credit has enabled many of us to live absolutely fabulous lifestyles, but outrageously high interest rates, ridiculous penalties and predatory fees have sucked the financial life out of millions of American families.
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    Community,   The Real Recovery,   The New Great Depression
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    Economy,  Financial,  Economics,  tea party,  1 more
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27 comments // The Credit Card Trap: How U.S. Credit Card Companies Are Sucking The Financial Life Out Of The American Consumer

  • observer2121
    • +1
      observer2121  

    • It's not the banks fault. Pay off your balance in full every month or better yet don't use a credit card and you won't have a problem. The fault lies with people who spend more than they make.

    • 1 year ago
  • existentialist
  • Incredulous
    • +1
      Incredulous  

    • yea, this is another one that we can thank the Reagan/Bush camp for...deregulate everything and rely on the good graces of these monsters to do the right thing...and after we bail their greedy asses out with our tax dollars they amp up the bloodsucking. I am so disgusted with this government. The day they give the boot to lobbyists is the day they might actually be able to think like rational human beings and actually do something for this nation besides putting us all further and further into debt to the monsters the lobbyists are working for.

    • 1 year ago
  • Paratus
  • Saladin
    • -1
      Saladin  
    • Paratus:

      God this argument gets old.

      Regulation is good, I don't like criminals running around scamming people. Do you?

      That's what deregulaton is and that's where we're at right now.

    • 1 year ago
  • WallStCheatSheet
    • +5
      WallStCheatSheet  

    • "Easy credit has enabled many of us to live absolutely fabulous lifestyles." Translation: borrowing money from other people has allowed us to buy more crap then we could if we had to pay with our own money.

      This is the reason why both US citizens and the US government are slaves to debt -- we are short-sighted and don't think about the repercussions of using other people's money.

      There's a reason China and Japan don't have this problem. They have common sense. Save your money and you can either buy more shit or buy time (i.e., retire).

      I hate credit card companies as much as the next person, but people also need to use their brains and stop blaming everyone else for being stupid. It's not astro-physics that spending more than you make is BAD.

    • 1 year ago
  • Incredulous
  • zichi
    • zichi [removed]  
    • This comment was removed as a violation of community guidelines.
  • ignignokt
  • Saladin
  • wally60
    • 0
      wally60  
    • zichi:

      i used them to start my business.go to the bank and see if you can get a loan
      for a business start up good luck.now they are raising the rates for no reason
      good old bank of america.the good news is i am getting ready to pay them off
      and that is the end of credit cards. use your debit card pay cash .screw the bankers!

    • 1 year ago
  • Elligirl
    • +2
      Elligirl  

    • I had credit card problems for a few years, but with determination and some hard work was able to get myself debt-free. Now I put a few cycling payments on my cards (cell phone, a few dinners here and there) to keep the accounts active, but as soon as a charge hits the card, I go to my online banking and put the money back against it. No interest, no balance, and super high credit rating. The consumer needs to educate himself and quite blaming card companies for taking advantage so much. It's a two-way street.

    • 1 year ago
  • KSirys
  • Guyatthebusstation
  • observer2121
  • Eddie_Miller
    • +1
      Eddie_Miller  

    • I feel like I'm the only person in the world who understands that YOU DON'T NEED CREDIT CARDS. If you don't use their service, you can't dig yourself into debt...simple stuff.

    • 1 year ago
  • Bushido
    • 0
      Bushido  
    • Eddie_Miller:

      You need credit cards if you want to build credit, buy a nice home, drive a decent car, start a business...you know...the American dream. Other than that, though, who needs credit cards?

      Hell, there is a credit card ad on this page as I type. Obviously they are a trap, much like student loans are. They promise you a bright and shiny future and then pull the rug out from under you. The problem is that if you want to make anything of yourself and provide for a family, you need both a piece of paper saying you are educated, which is not free, and credit cards. That is unless your plans involve being a rock star or winning the lottery.

      For the rest of us, unscrupulous credit card companies will continue to market towards our weaknesses and perpetuate a cycle of dependence not so unlike that of drug dealers.

    • 1 year ago
  • zichi
  • Incredulous
    • 0
      Incredulous  
    • Bushido:

      while I completely agree with you, unfortunately, if you travel for your work, you almost have to have a credit card. Yes, they reimburse you, but not always in a timely manner, and cash doesn't cut it when you leave the country.

    • 1 year ago
  • Bushido
    • 0
      Bushido  
    • zichi:

      I am not saying that it is impossible to not own a credit card and make it, but like Roulette, the odds are against you.

      Most people aren't satisfied with renting things for their entire lives. It is nice that it worked for you, but it isn't the norm. If you would be so kind to tell me how you got your business up and running without credit, I think a lot of people would be grateful. ;)

    • 1 year ago
  • Eddie_Miller
    • 0
      Eddie_Miller  
    • Bushido:

      Still, you don't NEED credit cards for any of that. You may choose to save and invest your money to actually grow it by buying assets instead of liabilities. People just don't have the patience for that and these credit card companies know that and take advantage. But hell, if I were them I'd do the same thing. I wouldn't mind getting rich off other people's ignorance.

    • 1 year ago
  • Eddie_Miller
  • Eddie_Miller
    • 0
      Eddie_Miller  
    • Bushido:

      Isn't it obvious? Instead of buy cars houses and other expensive shit, he lived below his means, saved what he could and put his money to work for him.

      And what's wrong with renting? Sure, you'll never OWN it, but why would you want to be stuck in one house for 30 years? Work, money, and business are always on the move and you should probably be able to move with them.

    • 1 year ago
  • Bushido
    • 0
      Bushido  
    • Eddie_Miller:

      No, it isn't obvious at all. Business requires capital. Capital more often than not, requires credit - unless you are running a hot dog stand, that is. Living below one's means is a great idea, until one realizes that they will need to save up a long time before they can finance a several hundred thousand dollar business venture. I for one did not want to wait until I was 60 years-old to get going with my company.

      If you want to live like a traveling minstrel your entire life that is your business. The fact is though that most people have families and seek some stability, which is why they buy homes and get steady jobs to begin with. And why not? Rent costs as much as a home these days, so it makes sense to buy and have some way to recoup some money if one should have to move.

      The fact of the matter is that you are both oversimplifying a complex issue. Calling credit card predators "smart businessmen" and the people they swindle "irresponsible" is a gross inaccuracy. The truth as demonstrated by the bailout of corrupt, bloated Wall Street tycoons is that the greed at the upper echelons will never be satiated. Your tactic of "staying off the grid" is not practical for everyone.

    • 1 year ago
  • JonRaymond
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