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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: I Have a Question About this Financial Mess...
Posted by Jennie0898
Posted by seaside
Posted by Beth1210
Posted by seaside
I'm just so sick of people with big eyes and a sense of entitlement getting ridiculous windfalls while those with se;f restraint who deprive themselves get nothing--and may be asked to contribute.... 
Yes, I know that not everyone with cc debt is entitled, but it's relative. I kow of no one with cc debt that doesn't buy new clothes each year, own at least some nice bags, lease or own a nicer car than she could, etc.
well as someone that is in CC debt b/c of medical expenses and prescriptions
(and loss of income do to medical issues)
I have to disagree
in the past 2 weeks- my husband needed $1200 of uncovered prescriptions to function
I am just glad I have the credit to manage it until we get our settlement $$$
Gonna quote myself on that: "In other words, my experience has been that there are few (but some) people who truly live within their means and couldn't cut back more if they had to...." There are clearly some people oout there that cannt cut back on what they're buying because they're spending $$$ on essentials, not luxuries. Medical expenses that drain people's accounts are clearly differnet than entitlement that does the same thing.
So to your point, what about these people? Don't they deserve a helping hand?
Your idea, IMO doesn't operate to help those whom I think need a helping hand. It operates to "rescue" lots of people whose choices and greed landed them in their predicaments. Those who need a hand should, IMO be given social services, medical help, basics of life--food/roof, etc., and they should be, as I would, in a big hurry to use the help as best as they can to get back on their feet. this is what laws and policies should incentivize, imo.
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Posted 10/16/08 6:51 PM  |
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Re: I Have a Question About this Financial Mess...
Posted by seaside
But the customers can stop using the cc as soon as the rate goes up--even if it went up without reason. They can use other cc's, especially if they pay on time--they can find other cc's with rewsards attached to them & have their pick. Or they can cut back because they're not in a position to be using $$ that they don't have. Those who really can't cut back and have surprise medical expenses should (and do) have social services available to them...but that's not what's being discussed.
As you said, this is not what is being discussed, but there are many people who do not qualify for any sort of aid for their medical expenses.
Do you really think it's a good idea for people to just keep starting to use different cards all the time?
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| Posted 10/16/08 6:53 PM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by seaside
Your idea, IMO doesn't operate to help those whom I think need a helping hand. It operates to "rescue" lots of people whose choices and greed landed them in their predicaments. Those who need a hand should, IMO be given social services, medical help, basics of life--food/roof, etc., and they should be, as I would, in a big hurry to use the help as best as they can to get back on their feet. this is what laws and policies should incentivize, imo.
Yeah, but not everyone "qualifies" for social services.
Example: My husband is a self employed contractor. His business is directly impacted by the economy. We try to save but honestly we couldn't live very long at all on what we have saved so our back up is our CC's. We've had to do this in the past when business slumps. As a result we have some CC debt.
I have a good job and make decent money but yes, we rely on both our incomes to pay the bills when DH doesn't bring in, we're in trouble.
We don't qualify for social services so what am I supposed to use to pay the grocery bill when business slows down?
ETA:
Also, if these people were to start using social services, that effects you directly b/c these are programs that are funded through tax dollars.
What I'm proposing would have NO impact on you or anyone elses money.
Message edited 10/16/2008 6:57:24 PM.
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| Posted 10/16/08 6:55 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
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Beth
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Re: I Have a Question About this Financial Mess...
Posted by seaside
Posted by Jennie0898
QUOTE]
Your idea, IMO doesn't operate to help those whom I think need a helping hand. It operates to "rescue" lots of people whose choices and greed landed them in their predicaments. Those who need a hand should, IMO be given social services, medical help, basics of life--food/roof, etc., and they should be, as I would, in a big hurry to use the help as best as they can to get back on their feet. this is what laws and policies should incentivize, imo.
honestly- I would NEVER want or qualify for any type of state help
I pay all my bills on time- never a minute late
all I would like is a reduction in the interest rate- I don't think that is asking too much so I can pay them off sooner
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| Posted 10/16/08 6:59 PM |
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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: I Have a Question About this Financial Mess...
Posted by Kerie-is-so-very
Posted by seaside
But the customers can stop using the cc as soon as the rate goes up--even if it went up without reason. They can use other cc's, especially if they pay on time--they can find other cc's with rewsards attached to them & have their pick. Or they can cut back because they're not in a position to be using $$ that they don't have. Those who really can't cut back and have surprise medical expenses should (and do) have social services available to them...but that's not what's being discussed.
As you said, this is not what is being discussed, but there are many people who do not qualify for any sort of aid for their medical expenses.
Do you really think it's a good idea for people to just keep starting to use different cards all the time?
I don't think it's a prudent idea, but I was asked what someone who pays on time and is responsible generally could or should do in the face of an out of the blue rate hike, and I pointed out that people have options, including buying fewer non-essentials on credit.
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| Posted 10/16/08 7:00 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: I Have a Question About this Financial Mess...
how about Personal responsibility?
Just like the Hoursing mess, you signed an agreement, and you should be responsible for such agreement.
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| Posted 10/16/08 7:48 PM |
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sunnygirl
loving life
Member since 1/07 5413 total posts
Name:
D
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Re: I Have a Question About this Financial Mess...
Posted by seaside
But the customers can stop using the cc as soon as the rate goes up--even if it went up without reason. They can use other cc's, especially if they pay on time--they can find other cc's with rewsards attached to them & have their pick. Or they can cut back because they're not in a position to be using $$ that they don't have. Those who really can't cut back and have surprise medical expenses should (and do) have social services available to them...but that's not what's being discussed.
this is really not always a viable option what if you are charging your groceries and your gas to get to and from work because your paycheck already went to rent and g&e and no you don't have a cell phone or a fancy card, i have lived that,
and surprised medical bills sometimes you don't have any other options you need the treatment and you need the prescriptions now you can't wait for some other service to come through for you
eta as someone who has been there and is now debt free after a hard struggle i do agree with cc lowering the interest rates, they are still making money just not as much, and maybe lower people's limits so they can't get into crazy debt
Message edited 10/16/2008 7:53:19 PM.
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| Posted 10/16/08 7:51 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: I Have a Question About this Financial Mess...
Posted by Meaghan729
how about Personal responsibility?
Just like the Hoursing mess, you signed an agreement, and you should be responsible for such agreement.
well that's already been thrown out the window in this country
countrywide is working with people to adjust the terms of their loans
and so are most other banks
nobody wins if people start defaulting on homes, cars or credit cards
if you are going to help homeowners- why not help everyone that needs it?
Message edited 10/16/2008 8:02:21 PM.
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| Posted 10/16/08 8:00 PM |
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justbeachy
So close....
Member since 7/07 2900 total posts
Name:
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Re: I Have a Question About this Financial Mess...
I like the CC idea...but I wish I had more faith in people.
Wouldn't people who have a lower cc rate spend more money? Wouldn't they see it as a way to facilitate spending more without as grand a penalty every month?
Sorry. I don't mean to be pessimistic, but I gotta be honest!
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| Posted 10/16/08 8:23 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: I Have a Question About this Financial Mess...
Isn't this the idea behind the companies that help with credit card debt? I can't think of the name of any of them at the moment, but they are not-for-profit. If you are in over your head, they negotiate with the cc companies for lower rates to help you pay off the debt. At the same time, you cannot use your CC and keep adding on to the debt.
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| Posted 10/16/08 9:23 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: I Have a Question About this Financial Mess...
Posted by SweetTooth
Isn't this the idea behind the companies that help with credit card debt? I can't think of the name of any of them at the moment, but they are not-for-profit. If you are in over your head, they negotiate with the cc companies for lower rates to help you pay off the debt. At the same time, you cannot use your CC and keep adding on to the debt.
it's called credit consoildation
it's for people that are already behind and don't have anything to lose by ruining their credit
some people claim they have great credit after- but there are so many scams out there with this now- I don't trust it for me
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| Posted 10/16/08 9:27 PM |
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mom2mgn
Love my family
Member since 2/08 2267 total posts
Name:
Christine
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Re: I Have a Question About this Financial Mess...
I really like the OP ideas also. We got into a lot of credit card debt b/c of medical reasons and it's really hard to dig out. Our balances increased and even though we paid the minimums on time every month, they increased our rates b/c they saw we were getting low on our open credit. It's killing us. They shouldn't be allowed to do this.
Also, I think that if the cc's were forced to lower their rates and fees, they might not be so willing to extend huge credit limits to people who may get themselves in trouble. For example, an 18 year old college student who gets a cc with a $5,000 limit!!! That's what I got when I was 18 and I'm sure 18 year olds are still getting that now.
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| Posted 10/17/08 10:48 AM |
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GioiaMia
Let's Go Rangers!
Member since 1/07 14818 total posts
Name:
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Re: I Have a Question About this Financial Mess...
I think this is a great idea and would really help us out.
A few years ago my mother had to stop working to care for my grandmother. My father had to cover all the bills alone and got into a lot of debt. He ALWAYS pays on time but now he is close to retirement and even though he tries not to rack up more debt - just the interest alone is killing him. He has perfect credit and lives frugally but he will never be able to pay of this debt since it seems to go UP every month instead of down.
Something like this wouild help him tremendously and since he is the hardest worker I know - I would LOVE for there to be a way to help him pay back his debt HIMSELF. . .
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| Posted 10/17/08 10:55 AM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by SupaBonBon
I like the CC idea...but I wish I had more faith in people.
Wouldn't people who have a lower cc rate spend more money? Wouldn't they see it as a way to facilitate spending more without as grand a penalty every month?
Sorry. I don't mean to be pessimistic, but I gotta be honest!
Well, there would still be limits on the cards, it would just make the CC companies be more RESPONSIBLE about giving out credit.
I agree that those with the cards should be responsible, but shouldn't some of the responsibility fall on the shoulders of the CC company?
Example - Person A has a relative in need but knows this person is not smart with their money what so ever. They lend them 5K and don't see a dime of that money repaid. While, yes, the family member who took the loan is wrong for not repaying the loan, the person lending the money should have known what they were getting into by lending this person the money to begin with.
I'm just looking to level the playing field a little bit.
But maybe my idea is completely hair-brained and would never work!
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| Posted 10/17/08 11:23 AM |
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DancinBarefoot
06ers Rock!!
Member since 1/07 9534 total posts
Name:
The One My Mother Gave Me ;-)
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Re: I Have a Question About this Financial Mess...
Posted by seaside
I did read what you wrote. I don't see why people who borrowed money at xyz rate should have the difference between what they borrowed it at and what they wish they had borrowed it at forgiven. Sorry. The cc companies are just like any other lenders--entitled to enforce the contracts people have willingly entered into with them.
But some people borrowed money at xyz rate, and then b/c they got laid off their job and made ONE late payment the rate went from xyz to xzy+15%.
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| Posted 10/17/08 12:04 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: I Have a Question About this Financial Mess...
next crisis- credit card meltdown
interesting article today on MSN
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| Posted 10/17/08 12:43 PM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Wow! I swear this "theory" of mine has been swirling in my head for quite some time now. I'm glad to know I'm not the only one out there.
I hope the gov't does something about some of the shady practices done by these CC companies.
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| Posted 10/17/08 12:53 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: I Have a Question About this Financial Mess...
Posted by Jennie0898
Wow! I swear this "theory" of mine has been swirling in my head for quite some time now. I'm glad to know I'm not the only one out there.
I hope the gov't does something about some of the shady practices done by these CC companies.
I hope so too- Bank of America- who I already hated
lowered my credit limit recently b/c of "payment history"
I guess that would be my on time payment history- since I have never been late once?????
they couldn't give me a real reason when I called- I am paying them off and cutting it up
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| Posted 10/17/08 12:56 PM |
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GioiaMia
Let's Go Rangers!
Member since 1/07 14818 total posts
Name:
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Re: I Have a Question About this Financial Mess...
Posted by Jennie0898
Wow! I swear this "theory" of mine has been swirling in my head for quite some time now. I'm glad to know I'm not the only one out there.
I hope the gov't does something about some of the shady practices done by these CC companies.
Did you see Maxed Out? They had to cut short a meeting about credit card regulation because they were "running late" 
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| Posted 10/17/08 1:10 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: I Have a Question About this Financial Mess...
There is no reason other than greed that CC companies would be charging people 25-30% interest. It is ridiculous and assanine no matter how you look at it. IMO charging people 28% interest is taking advantage the same way the mortgage companies took advantage of people and gave them loans they couldn't afford.
You are borrowing money so of course you should be paying interest as you pay it back, but I think CC rates should be market driven just like mortgages.
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| Posted 10/17/08 9:21 PM |
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passerby
LIF Zygote
Member since 8/08 47 total posts
Name:
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Re: I Have a Question About this Financial Mess...
I don't think its a big deal to lower a rate, it wouldn't fall on the governments hands.
CC companies do it all the time how many of those offers come in the mail to transfer your balance to a lower rate. I transfered one of mine to a 3.99% until its paid off.
I don't think anyone is asking for a "bail out" I manage my debt fine but it would be nice to see more of my payment going to principal rather then interest.
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| Posted 10/18/08 8:02 AM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by Tilde
Posted by Jennie0898
Wow! I swear this "theory" of mine has been swirling in my head for quite some time now. I'm glad to know I'm not the only one out there.
I hope the gov't does something about some of the shady practices done by these CC companies.
Did you see Maxed Out? They had to cut short a meeting about credit card regulation because they were "running late"
   
that's horrendous.
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| Posted 10/18/08 11:50 AM |
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Porrruss
Nya nya nya
Member since 5/05 11618 total posts
Name:
Amy
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Re: I Have a Question About this Financial Mess...
As someone who has a LARGE credit card debt- but pays on time every month, I would LOVE to have the rates lowered or frozen.
Thankfully, I have 3 cards, but only one carries the balance. When I get a 0% interest free offer on one, I do a balance transfer. I hate the horrible feeling I get when that 0% offer is coming to an end and I am praying that one of the other cards offers up another 0% offer. At this rate I am slowly whittling away my debt. I shudder to think of the day that I get hit with the full finance charge on it.
Lowering the rates would certainly help someone like me......
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| Posted 10/18/08 12:55 PM |
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Katie111806
Team Pink!
Member since 12/06 5349 total posts
Name:
Katie
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Re: I Have a Question About this Financial Mess...
Posted by Meaghan729
how about Personal responsibility?
Just like the Hoursing mess, you signed an agreement, and you should be responsible for such agreement.
I have a decent amount of CC debt and I would hardly call myself personally irresponsible. I have stellar credit and have solid payment history on all of my cards, yet my rates continue to be raised. Are any of them in the 25-30% range - not even close - but when I call a card to ask if they can work with me to lower my rate by a few points because they are killing me on interest, only to be told NO and then have the rate RAISED again on the next statement, I hardly call that fair. Yes, I have an agreement with that company and will continue to pay my bill (until I find the right place to transfer my balance with ASAP) but I think what the OP is saying makes a lot of sense. Helping out those with CC debt in a way that is not being absorbed by the gov't would benefit so many. Yes, some who have been "irresponsible" would also benefit, but I don't think you can lump us all together.
Do I think CC companies will go for it? No - it doesn't make sense for their business. But something really needs to be done!
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| Posted 10/18/08 4:56 PM |
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bluegreen08
LIF Adolescent
Member since 10/07 574 total posts
Name:
a
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Re: I Have a Question About this Financial Mess...
I'd say capping credit cards at 10% interest could be a good idea, but lowering them to 2% is a little low....
i mean, in that case i could take out $$$ on a credit card and buy a CD with it and still profit
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| Posted 10/18/08 5:05 PM |
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