Credit Crunch

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Have noticed more people paying with cash for their purchases here lately, could it be the American Love Affair with the Credit Card is over?  Aggressive rate increases on credit cards are threatening to pushing struggling consumers into financial ruin, accelerating home foreclosures and the nations’ decent into recession.

Keeping up with the Jones’es isn’t as easy as it used to be.

Routinely I see people open up their wallets and there will be anywhere from 4 to 8 credit cards clearly visible and I just cannot for the life of me see how they can justify that.  With interest rates where they are and payments on just the minimum balance regularly exceeding a thousand dollars a month, how does one do it?

Let’s run this one up the flagpole and see if we can find someone to salute it.  Where else could you enter into a business agreement with someone and then as you get into it, the rules are suddenly tossed out the window, and you are operating in a system that is vastly different from the system you started out with.

Credit Card issuers do it all the time.

It is done everyday in this country, the credit card folks just take and they take and it appears there is nothing the consumer can do but pay.  Now it has reached a point where if you owe too much money they raise your rate, if you don’t owe a lot of money, then they lower your credit score, there is no way you can win, it all goes to them.

Stopping excess spending and borrowing, and then standing in the middle of the road will not work either.  You are going to get run over by either one or both sides on this issue.  The credit card people and the government are putting the screws to you simultaneously.

They beat you down.  And the government helps them do it, the people you elected to protect you, are now giving the banks/credit card issuers over a year and one-half to clean up their act.  Seeing absolutely no way to hide it any more, they have been forced to do something about it, simply because of its egregious nature.  The politicians cannot sweep it under the rug anymore.  So they issue new standards for these robbing thieves, and give them a couple of years to keep on robbing you.

It is tantamount to a license to steal, and it was issued on you, by YOUR government.  Think about that one the next time you decide to sit it out and not vote.  Maybe we will all get lucky and they will decide, one by one, to take a long walk in the snow and do the rest of us a favor.

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The bankers took our money and then refused to tell us what they did with it, and now they want us to believe they are our new friends.  America’s banks have a totally new image.  Now you have “a friend in the banking industry.”  If the banks are so friendly, how come they still chain down the pens?

Why is it that all of this happens?

Simple.

We have a lot of friends in low places that’s why.

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“The cartoon courtesy of Center for American Progress” (online)

One thought on “Credit Crunch

  1. Cash FTW! I’ve only ever had one credit card, and only used it in cases where it actually came in cheaper to pay by plastic (like interest-free instalments or actual discounts for credit payers). The slots in my purse are still full, but with loyalty cards to the stores I do my regular shopping, in order to redeem points for extra shopping. I’m after freebies and I’m not ashamed to admit it. I have a child to raise and nothing is getting any cheaper.
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    Good for you! That is the spirit, if we cannot afford it, we wait until we can. It wasn’t always that way, but it is now, and it works. Trust you had a great holiday.

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