Topic: Personal Finances: Credit Cards Next Recession Issue (Read 1642 times)

ReddGirl · « **on:** January 04, 2009, 05:33:05 PM »

Major Credit Card companies are about to do the following:

1. Reduce spending limits

2. Raise interest rates from 29%-35%.

This may be a greater threat to our economy because many Americans use credit to fill the gaps. Personally I have seen at the Company I work for major increases in fees that I know is about to hit everyday Americans.

So please begin today looking at your dependency to credit cards. If you are using credit cards to supplement your living then consider (a) another job and (b) major downsizing.

csedwards2 · « **Reply #1 on:** January 04, 2009, 05:47:10 PM »

Credit card companies have been doing this for several months. This pr campaign (if you can call it that) they are doing is to explain the actions they have been taking. FWIW, credit card companies always had the power and our approval to do this by a lil clause that says something to the effect of, "We reserve the right to change this agreement and/or interest rate at our discretion."

Many people have wondered whats going on, but its been happening, even to those of A credit status to reduce the outstanding credit available that banks have on the books and to increase income

This economy and the new rules about credit that finance companies dream up in times like these is why Dave Ramsey holds the philosophies he does.

Fenix · « **Reply #2 on:** January 04, 2009, 06:28:08 PM »

Quote from: csedwards2 on January 04, 2009, 05:47:10 PM

This economy and the new rules about credit that finance companies dream up in times like these is why Dave Ramsey holds the philosophies he does.

I just checked out some videos on Youtube of Dave Ramsey. Good stuff. Thanks.

under13 · « **Reply #3 on:** January 04, 2009, 07:38:33 PM »

Quote from: ReddGirl on January 04, 2009, 05:33:05 PM

consider (a) another job and

Assuming they even have a job in the first place

Great advice nonetheless.

Me I dont even have a credit card. I'll probaly try to get one in a month or two when I have an established credit history.

4hisglory · « **Reply #4 on:** January 04, 2009, 07:52:29 PM »

This is why I say people should get rid of the credit card mentality all together. Its more of a problem than a benefit.

ReddGirl · « **Reply #5 on:** January 04, 2009, 10:15:55 PM »

My grandfather told me to always PAY in cash. He left this world with no debt, his house paid in full and left land for his family. So don't tell me it can't be done. It is really pressing in my heart to challenge us saved people to get out of bondage. OWE NO MAN NOTHING but love.

BigFoot_BigThumb · « **Reply #6 on:** January 05, 2009, 01:40:51 AM »

The companies are gonna rasie rates? The current rate is why people can't pay anyway. The credit card enables people to buy stuff they really can't afford anyway. Instead of trying to help people, they're gonna screw them even more. It's up to people to realize what a credit card really is and be disciplined in their use of it. If I could go back to the day I first got a credit card, I would have walked out of that store and I would be in such a better position finacially if I had never gottten caught up. I went nuts as so many people do when they're able get whatever they want with that little card. If this does go down, I just hope that consumers wise up.

4hisglory · « **Reply #7 on:** January 05, 2009, 08:08:01 AM »

Quote from: BigFoot_BigThumb on January 05, 2009, 01:40:51 AM

The credit card enables people to buy stuff they really can't afford anyway. Instead of trying to help people, they're gonna screw them even more.

You really think they ever tried to help people? They've always tried to help themselves.

Fenix · « **Reply #8 on:** January 05, 2009, 08:28:12 AM »

Quote from: 4hisglory on January 05, 2009, 08:08:01 AM

You really think they ever tried to help people? They've always tried to help themselves.

As harsh as this may sound, a business that is put together for sakes of profit has very little to no obligation to help people.

GospelEngineer · « **Reply #9 on:** January 05, 2009, 08:52:38 AM »

Personally I'm all for this. I'm a 21 year old college student, on my second credit card and they give me a credit limit of $7900 dollars. Granted I have a great credit rating but I barely make that much in a year!! God forbid I ever decide to go on a spending spree....

ReddGirl · « **Reply #10 on:** January 05, 2009, 09:10:12 AM »

Quote from: GospelEngineer on January 05, 2009, 08:52:38 AM

Personally I'm all for this. I'm a 21 year old college student, on my second credit card and they give me a credit limit of $7900 dollars. Granted I have a great credit rating but I barely make that much in a year!! God forbid I ever decide to go on a spending spree....

College is where they start on many of us. Get a free T-Shirt or free mug for a noose! Please cut up your cards and manage with less. I have been their and trust me...it can be done. I am not talking from the side of my mouth but someone who has done it.

sjonathan02 · « **Reply #11 on:** January 05, 2009, 09:58:01 AM »

I don't think credit cards are of da debil.

Much like the LOVE of money is the root of all evil, the OVERUSE of a credit cards is of da debil.

There's a difference.

ReddGirl · « **Reply #12 on:** January 05, 2009, 09:59:12 AM »

Quote from: sjonathan02 on January 05, 2009, 09:58:01 AM

Much like the LOVE

?? Me no comprende

sjonathan02 · « **Reply #13 on:** January 05, 2009, 09:59:58 AM »

Quote from: ReddGirl on January 05, 2009, 09:59:12 AM

?? Me no comprende

You're too fast, I didn't finish. Luckily, I have green stars.

under13 · « **Reply #14 on:** January 05, 2009, 10:43:52 AM »

Quote from: sjonathan02 on January 05, 2009, 09:58:01 AM

I don't think credit cards are of da debil.

Much like the LOVE of money is the root of all evil, the OVERUSE of a credit cards is of da debil.

There's a difference.

I have to agree.

How are you suposed to have a good credit score when you dont have a credit card? When you go to buy a car or house, unless you have very good credit, you are gonna be paying much much more. I also dont beleive that having debt in the form of a car note or mortgage is of 'da debil'.

Fenix · « **Reply #15 on:** January 05, 2009, 10:47:12 AM »

Quote from: under13 on January 05, 2009, 10:43:52 AM

I have to agree.

How are you suposed to have a good credit score when you dont have a credit card? When you go to buy a car or house, unless you have very good credit, you are gonna be paying much much more. I also dont beleive that having debt in the form of a car note or mortgage is of 'da debil'.

No its not of "da debil". Those kinds of debt are good debt because they get you what is essential to your living: a roof over your head and a means of transportation to your source of income. Student loans are also good debt.

Bad debt is that new cashmere blazer you've been wanting but can't afford and you charge it to your credit card. Its all those unnecessary things that are not essential to you living.

Rjthakid · « **Reply #16 on:** January 05, 2009, 10:58:58 AM »

Quote from: under13 on January 05, 2009, 10:43:52 AM

I have to agree.

How are you suposed to have a good credit score when you dont have a credit card? When you go to buy a car or house, unless you have very good credit, you are gonna be paying much much more. I also dont beleive that having debt in the form of a car note or mortgage is of 'da debil'.

This is one of the biggest misconceptions regarding credit...and one that Credit Card companies hope never dies.

An exerpt from http://www.totallyfreecreditreport.org/CreditScore.php :

"There are various factors which affect the credit scores. Since the credit scores are computed versions of the credit reports, they are also based on the same factors like the credit reports. These factors include the payment history of the debtors, their income, debts cleared, loans taken and duration for the same, previous bills and credit card dues and various other related factors. All kinds of bills affect the credit scores. These include the credit card bill, medical bills and even utility bills. Hence the non payment of the utility bills can reflect poorly on the credit scores. The impact or the extent of its influence depends on the amount of the bills, late fines and duration of non payment. The longer the dues are not paid the lower the credit scores fall."

Fenix · « **Reply #17 on:** January 05, 2009, 11:24:55 AM »

I can attest to the utility bill affecting your credit. Verizon hired a collections firm to get their money from me over a bill i had NOT incurred. We argued this back and forth over the phone with supervisor after supervisor but Verizon would not budge. They hired a collections firm. At that point i just got scared and paid off the bill.

This is probably why i am not a Verizon customer. I feel i was bamboozled and can't do anything about it./

ReddGirl · « **Reply #18 on:** January 05, 2009, 11:56:50 AM »

Quote from: sjonathan02 on January 05, 2009, 09:58:01 AM

I don't think credit cards are of da debil.

Much like the LOVE of money is the root of all evil, the OVERUSE of a credit cards is of da debil.

There's a difference.

I AGREE! I like to spend money but I only spend what I have is my point.

under13 · « **Reply #19 on:** January 05, 2009, 01:53:26 PM »

Thanks for th info RJ.

Like I said, I'll probaly get one in february. Dont you need a crdit card to book Hotel rooms and stuff?

Author Topic: Personal Finances: Credit Cards Next Recession Issue (Read 1642 times)

Rjthakid