Your credit card payment just doubled

[Shattered]

I only have one car. My wife has a car, too. And I'm not under crushing debt - I 'used to be'.

I have a $25K car; she has a $2,000 car.

Way back when you had the "other" cool car?

No offense intended, really. I just see people talk about all this debt, and at the same time, they're prioritizing things like two new cars, with ground effects, new stereos, and other shit they don't need. Yet, they wonder why they can't climb out of debt... Perhaps a $10,000.00 Spiegel bill plays a part in that... (Just using people that I know as examples). If one can't buy groceries, and pay for a car repair, that means they have too much "stuff" and not enough money in savings.

 

[Bullypulpit]

Well, as you like to point out when you are arguing about them charging, the CC companies are quite profitable. They know what their balance can be. They also know that if the system craps out, they aren't going to do too bad because people are so WILLING to sign over everything they own as collateral. The banks will get to own a lot of houses if people DON'T START TAKING RESPONSIBILITY FOR THEIR DEBT LEVELS! Sure, if the economy tanks the property won't be worth much - today - but it will be in the future and the banks have enough put away to cover their asses until the economy turns around. So to fight their greed, become RESPONSIBLE.

I am...No outstanding balances on my credit cards. Use 1 each month to fill up the car then pay off the balance. Keeps the credit lines open and helps improve the credit scores.

 

[GotZoom]

I am...No outstanding balances on my credit cards. Use 1 each month to fill up the car and pay it off. Keeps the credit lines open and helps improve the credit scores.

Just remember your Debt and High Credit to Income Ratio. As long as your High Credit isn't too outrageous, your "open" credit cards with zero balances won't hurt you.

CC companies will consider that amount of credit available to you, even though your cards have zero balances. It tells them you have the "potential" to get into trouble quickly.

I'm sure I'm not telling you (and everyone) something you/they already know though.

 

[freeandfun1]

I am...No outstanding balances on my credit cards. Use 1 each month to fill up the car and pay it off. Keeps the credit lines open and helps improve the credit scores.

Very good! See, it is all about responsibility.

Did you guys see the show last night on payday advances? It was interesting. I invested in a payday advance/check cashing store in 2000. I sold my interest in 2002. The stats show that the majority of those using those type services are what they call "the unbankables". Mostly illegals and people with really bad credit so they can't even get a bank account. There is a very small minority (less than 5%) that are people that are just living beyond their means. But they are the ones that get all the attention and then they blame it on the store owners for giving them advances. The people CHOOSE to take the advances. If they shut down those type of establishments, as the libs are screaming for, it will seriously hurt a lot of honest people that are just "unbankable" for whatever reasons...

 

[GotZoom]

Very good! See, it is all about responsibility.

Did you guys see the show last night on payday advances? It was interesting. I invested in a payday advance/check cashing store in 2000. I sold my interest in 2002. The stats show that the majority of those using those type services are what they call "the unbankables". Mostly illegals and people with really bad credit so they can't even get a bank account. There is a very small minority (less than 5%) that are people that are just living beyond their means. But they are the ones that get all the attention and then they blame it on the store owners for giving them advances. The people CHOOSE to take the advances. If they shut down those type of establishments, as the libs are screaming for, it will seriously hurt a lot of honest people that are just "unbankable" for whatever reasons...

I saw it too. All the shows/newspaper articles paint those business as Loan Sharks etc.

What they don't report is that once that in most states, the law requires the customer to pay off the advance completely. Then the transaction is over. Now, if they choose to "re-write" (open ANOTHER advance), that is on the customer.

It is illegal in most states to accept the "roll-over" - the fee.

The reports show the interest rate as 520% APR which is the 20% interest rate for each transaction times 26 (every two weeks of the year). I would say that 20% interest is reasonable when you compare it to Credit Cards with 23 percents interest of banks that charge a $29.00 NSF fee along with a $5.00 over draft fee if you bounch a $10.00 check.

 

[Bullypulpit]

Very good! See, it is all about responsibility.

Yes, it is, on both sides. But people who have no impulse control and poor credit histories are going to continue recieving credit card offers they cannot afford from credit card issues who know this. So, if credit card issuers stop this practice, they won't have to worry about losses from deadbeats. As I said before, it takes two to tango in this game.