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Merris · Oct 17, 2008, 12:47 PM

Originally Posted by ScottGem

I was slightly shocked recently when I got a letter from one of my cards (a store card administered by a major bank) that they were reducing my credit line. The reason given was solely because I wasn't using anywhere near the line I had been given so it was to my advantage to have a lower line.

Was this after the bailout?

simoneaugie · Oct 17, 2008, 01:45 PM

We can starve the loan-sharks. Pay off your credit (not mortgages) and don't get any more unless you can pay it off within one month. Throw those pre-approved offers away before even thinking about signing your income away.

I have done this. It took several years. Now they tell me that my credit is less than perfect because I don't use a credit card! Eeff them! Yeah, the bonus points are a loss for me. The peace of mind and simplicity of life makes up for it.

Merris · Oct 17, 2008, 02:02 PM

Originally Posted by simoneaugie

We can starve the loan-sharks. Pay off your credit (not mortgages) and don't get any more unless you can pay it off within one month. Throw those pre-approved offers away before even thinking about signing your income away.

I have done this. It took several years. Now they tell me that my credit is less than perfect because I don't use a credit card! Eeff them! Yeah, the bonus points are a loss for me. The peace of mind and simplicity of life makes up for it.

Hear hear!

Iknowalotofstuff · Oct 17, 2008, 02:04 PM

The trickle down theory is bad economics. It states that if you make the rich richer they will voluntarily redistribute their wealth without government intervention. This is BS and a recipe for the increasing gap between the rich and the not so rich. People who want to legislate a redistribution of weath so that the not so rich have something are called socialists.

The goldern rule used to be "do unto others as they do unto you". The new economic golden rule is "do it to them before they do it to you".
We are a nation of buyers and sellers of things. If we do not sell, the economy does not prosper. The cost of everything is going up while real wages are static. How then can we buy. We mortgage our future earnings to have these things we want but do not necessarily need.

The sooner we start to think in terms of "we" rather than "me" the better off we will be. A prime example is health care in the US. A heart attack should not put someone into bankruptcy. Heathcare is a right not a privilege.

If the government can fund roads and parks, the arts and the space program, buy $23.00 army helmets for 50 bucks, they can certainly from the entire tax base fund heathcare.

The people who are against a national health care system are those who make money on the sick. What other reason can there be?

Credit card companies are the HMO of the financal field.

Iknowalotofstuff · Oct 17, 2008, 02:05 PM

They there are pay day loans. Borrow $400.00 payback $500.00 in two weeks. Effective rate is more than 640%. They say the rate is 25% of the amount. Pick on the most desperate. Then there is HR Block and their ilk discounting tax returns. Then there are the Sopranos. Credit Cards.. all sharks.

excon · Oct 17, 2008, 02:09 PM

Hello know:

There's one good thing about the present breakdown. Those places are toast, and won't return.

excon

tomder55 · Oct 17, 2008, 03:09 PM

For what it is worth I agree that the bailout was a bad idea. The financial institutions have made it clear that they have no intention of using our generousity to loosen their lending . They are planning on hoarding the money for at least the next quarter.

I know that a trillion dollars given back to the people would've been instantly stimulative if there was a need for any government intervention at all.

I agree with you that college students should not be subject to the pressures of the alliance between the lending institutions and the educational institutions to sign up for cards from these predators . Sure we know that college students are generally stupid people.

excon · Oct 17, 2008, 03:22 PM

Hello again,

We used to have usury laws that protected the public from predatory lending and loan sharking. Somebody thought we should rescind them. I'll bet it was the bankers and their buddies the Republicans who've been in charge of ALL THREE branches of government for 8 of the last 10 years. I kind of think that's when these predator pay day lenders started cropping up.

We used to have bankruptcy laws that were fair, but they were changed to favor the banks. I wonder who changed those laws.

We used to have laws that protected the credit card holder from his bank raising his interest rate to unheard of levels whenever the BANK wanted to. I wonder who changed those laws.

excon

inthebox · Oct 17, 2008, 04:16 PM

Originally Posted by Iknowalotofstuff

The trickle down theory is bad economics. It states that if you make the rich richer they will voluntarily redistribute their wealth without government intervention. This is BS and a recipe for the increasing gap between the rich and the not so rich. People who want to legislate a redistribution of weath so that the not so rich have something are called socialists.

So what do you believe in?
Trickle up? We can start with minimum wage workers giving to those making 30k /yr, those folks in turn can give to those making 40k/ yr and so forth.
Does not make much sense does it?

The sooner we start to think in terms of "we" rather than "me" the better off we will be. A prime example is health care in the US. A heart attack should not put someone into bankruptcy. Heathcare is a right not a privilege.

If the government can fund roads and parks, the arts and the space program, buy $23.00 army helmets for 50 bucks, they can certainly from the entire tax base fund heathcare.

The people who are against a national health care system are those who make money on the sick. What other reason can there be?

Credit card companies are the HMO of the financal field.

A right? Is it in the constitution?

Why should a doctor, who goes into 6 figure debt to start a career at 30, make all that sacrifice to work for free? Same equation for nurses, dentists etc...
You want free healthcare - take care of yourself for free.

Why not make college a "right" and have all those with advanced teaching degrees and expertise in research just work for less or for "free"

How about legal counsel as a "right" because we know lawyers don't need to make money.

How about in housing as a "right" - make construction companys do it for less or for free.

We know that quality of service is great when people are made to work for free.

Why don't YOU start a movement, lead by example, and, hopefully YOU possess some skills, WORK FOR FREE. Yes, start trickling upward :D

Merris · Oct 17, 2008, 05:51 PM

So out of curiousity... who here is voting for Bob Barr?

excon · Oct 17, 2008, 06:01 PM

Hello Merris:

Bob Barr is a Republican who holds many anti libertarian views. Ron Paul is a libertarian who's pretending to be a Republican.

I'm voting for Obama.

excon

Merris · Oct 17, 2008, 06:14 PM

Hey Ex...

I quoted you by mistake and was in a hurry. I meant to just generally ask the question. Sorry!

tomder55 · Oct 18, 2008, 01:39 AM

Ex ;as you know pay day lending is regulated at the States level . In 37 states it is legal and regulated to some degree by usury laws . In 13 states it is illegal. Georgia made it a felony.

Iknowalotofstuff · Oct 20, 2008, 06:50 AM

Points!! How does one acquire points? By using the card. How does one acquire sufficient points to use them? Air Miles is a good one. You must use your card substantially to have enough Air Miles to get to a destination. Then they want you to use the card while on vacation. There is method to their madness.

tomder55 · Oct 20, 2008, 06:58 AM

You have to know how to work their system . I buy virtually everything on one credit card . So long as you pay it off (live within your means) you are not charged interest .I do not even accept credit from services with a fee.

Yes Points accumulate . I fly free or at a discount . Yes I use the card while on vacation and pay it when due.
It's a beautiful thing . I buy goods and services and if the timing is right ,pay it up to a month later for free! Who can argue with that ? Meanwhile my money works for me in the bank .

excon · Oct 20, 2008, 07:08 AM

Originally Posted by Iknowalotofstuff

There is method to their madness.

Hello again,

Dude! You act as though you have no choice in the matter. Yes, they're very good at marketing their product... But, you can say NO!

excon

Iknowalotofstuff · Oct 20, 2008, 11:23 AM

Everyone has responsibility both lender and borrower. Each should be responsible for their actions. Borrow too much.. pay the consequences. Lend too much... suffer the consequences. These consequences should not be passed on to others.

Once again if I equate credit cards to cigarettes. The second hand smoke of credit cards is how indicriminate credit granting affects the people who do not abuse the credit. The citizens of the US who through their tax dollars will be paying this $7 B bailout are suffering the second hand smoke of the indiscriminate lending. The US taxpayer is paying for their mistakes.

The solution from the government and the credit granting community is a $7 B bailout to compensate them for our mistakes. If an idividual company or individaulhad too much debt in the past, it went bankrupt. Maybe they should apply for a bailout too.

What is the credit card industry's response to people not being able to pay their cards? Do they make it more difficult to get unsecured high interest credit? NO They lobby GW to make it more difficult to go bankrupt on debt they should have never had in the first place.

Iknowalotofstuff · Oct 20, 2008, 11:37 AM

By the way, there is a very easy way to deal with the problems in the stock market. Make profit on the stock market taxable as income not capital gains if the stock is sold within 30 days. As I understand it, the US taxes capital gains on only 50% of the gain.

If I work and make $1000.00 this week, I pay tax on my gross earning of $1000.00. If I buy a stock (on margin or credit) and make a profit before I actually have to pay for that stock, only 50% of any profit is only taxable at the applicable rate. The poor guy who actually works pays a much higher rate than the guy who invested nothing (usually other peoples money). This does not seem fair.

In addition to this solution, I suggest is to have a financial transaction tax at some minuscule part of 1% on every dollar that moves through the financial services sector. You know all of the moves that are made when we sleep. This would probably replace income and most other forms of tax.

Galveston1 · Oct 21, 2008, 04:59 PM

Actually the problem is not with credit cards. The problem is that the borrower has no integrity. To borrow more than you know you can repay is basically dishonest. There was a time in this country when most men would rather die than default on a just debt. They had character, something sadly lacking today.

simoneaugie · Oct 22, 2008, 01:17 PM

Character?
Are these principles taught in public education? How many eighth or ninth graders in the public school system can define character? Parents generally do not teach them much because the parents are both busy working to pay off debt they did not have the character to not get into.

The problem is larger and actually not as mathematical as my bank account or that of a politician who makes a guaranteed income for life, after serving a term of four years. The problem is not so much about what's happening in the news. What is going on around the dinner table at home, and why?