New bankruptcy bill will lead to a Black Christmas

[zoeb]

2005 ... The year of the Black Christmas?

Millions of Americans are going to have a huge surprise before Christmas ... a big enough surprise to have them make a huge cut back in Christmas spending.

The event will surprise you ... it is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

If your first thought is that it will not apply to you, and only to those who are involved in bankruptcy
conditions ... think again.

The new law has hidden provisions that will effect every American with a credit card who has been making the minimum payment amount in the past. This provision, by law, will have the banks change the minimum current payment of 2% of the balance to 4% ... changing the pay off period from 20 years to 10 years.

When consumers get their 100% increase required minimum payment in November’s statement, available discretionary income will be sucked out of retail purchases and into the banks.

This new change in minimum required payments will drain a minimum of 13 Billion Dollars of Christmas shopping purchases. The real number is likely to be at least double that amount ... 26 Billion dollars.
The effect on retail store profits, the stock market and the economy will be a very negative event.

More here:
http://www.investorshub.com/boards/read_msg.asp?message_id=7565829

[Tandalayo_Scheisskopf]

1. Cool.

Maybe this will start to wake people up.

But I ain't holdin' my breath. There are some that will praise the pirates as they move into a refrigerator box under a train trestle. Lots of people.

[fortyfeetunder]

2. Will Katrina and Rita victims get recourse from this?

Considering many are displaced from their homes, no insurance, businesses decimated etc. What's Congress going to do for these people?
Since this is a national disaster of epic proportions, this bill should be shelved at least a year. What's the rush to enact it?

:sarcasm: Bush's buds in the banking and credit card agencies need the money....

[WatchWhatISay]

4. That would be so like this Congress

to make an exception for this visible group of people, and pretend not to know that lots of other people face personal disasters just as devastating. Like health problems that decimate their incomes or limit their ability to make that income in the first place. Or people whose jobs have been outsourced, and can only find much lower paying jobs to replace them.

It's not just Bush's buds who allow this to happen. There are plenty of Democrats with dirty hands too. You wouldn't know who Joe Leiberman was if it weren't bankers money in politics.

[msongs]

3. gee too bad, people actually have to pay back the money they borrowed

and the higher minimum payment will help them get out from under their credit card debt faster.

now isn't that too bad they will have to be responsible for their own debts.

instead of buying tons of cheap trash made in china as xmas gifts perhaps these same people could instead go out into their community and do things to help others like volunteer.

Msongs
www.msongs.com/clark2008.htm

[graywarrior]

7. Some people go bankrupt because they got sick, had an

accident and cc's would not work with them so they could pay them off. I know...I've been trying to get them to talk to me for 3 years. I cannot work full time ever again. I didn't know this would happen to me. I didn't plan on being partially disabled.

Screw the credit card companies if they don't want to make a deal. I'll file bankruptcy with no guilt.

[fortyfeetunder]

8. Mighty broad generalization there...

Are you assuming people have credit card debt from purely discretionary spending?

How about the people who had to finance health care spending or business expenses with credit cards because banks won't give them conventional loans (with lower interest rates)?

I don't have much sympathy for those who were trying to "keep up with the Joneses" (and I know a few of them), but there is a population where conventional loans aren't even awarded to them and unfortunately, they are caught up using the easiest credit to attain-- the dreaded revolving credit.

[melody]

9. I got into debt helping my disabled son and then became disabled myself

So you might want to reconsider your generalizations

[newswolf56]

11. Here again the nasty elitism of the bourgeoisie, heedless of the fact

the reason Americans carry such a huge credit card debt is because wages have failed to keep up with inflation. For people on fixed incomes -- elderly and disabled people who use credit to amortize essential expenses (false teeth, clothing, eyeglasses, medications etc.) this will be ruinous: no possibility of avoiding bankruptcy. Such people (of whom I am one) can still claim bankruptcy because of low-income exemptions in the law, but without credit we are doomed: no way to get far enough ahead of monthly expenses to save any money, no way to purchase life-sustaining essentials with credit gone and no savings.

Obviously you have never been impoverished -- and have typically Republican empathy for those of us who are.

[ClintonTyree]

12. Yeah, the poor credit card companies........

that are charging people 8 times the prime rate for the use of their cards. This is an abomination and few people realize that this thing is going to kick in in their November bills.
Aren't you being just a trifle self righteous in your assessment of this give-away to the credit card companies? :eyes:

[CountAllVotes]

5. I've got some Xmas cards I bought after Xmas

and I might send some of those out.

And that will be the beginning/end of the 'celebration' around here.

:kick:

[KLF44]

6. Next thing you know

shrub will want to bring back debtor's prison.

[melody]

10. Don't think they wouldn't if they could n/t

[Del]

13. More fire for the kitchen

Easy, make easy money, monetise everything, tell people to build up credit.................then stick them right in the back.