Credit Cards keep the masses quiet?

[DenaliDemocrat]

I have a theory. I make a good salary, and find myself having a harder and harder time making ends meet. I often wonder how others are doing it. I often wonder, with the state of wages in this country, why the masses are not screaming. Honestly, I live rather frugally, but I still see my standard of living going down.

Let's be honest, people should be screaming about their lack of raises, inflation, etc. Why aren't they? I believe that the answer is credit cards. Credit is cheap, and I know a ton of people who use credit cards as a source of income. People are putting pampers, hamburger, and milk on the cards. Yep, they are using them to live.

I believe this has an effect. First, it keeps the masses quiet. No one is screaming about their poor wages, because they are still taking care of business as far as food on the table, the lights, the gas bill, etc. Secondly, the bankers are getting interest payments off of these things people are throwing on their cards.

We are complacent because we are not doing without. We are complacement because we seem to be doing "okay". In reality, we are getting deeper and deeper into debt, some so deep that they will NEVER get out.

It is a conspiracy. A way to keep wages low, but still let the stockholders and bankers make their money. The products still get purchases, but the consumer is getting killed.

[Pugee]

1. Makes sense

I also make a decent wage in a LOW pay area, yet, never can get ahead.
As for the credit cards, I was amazed when it became so common for people to buy a hamburger or even groceries on a credit card!! The companies really push this on commercials too.

[The Crazy Canadian]

2. The elites want the public to be heavily indebted.

That way, they will have power over them.

The way the US built it's empire was to get third world countries heavily indebted, and once they couldn't pay up, the US came in and dictated how that country was going to direct it's resources. I feel this is the same idea, but applied on a much smaller scale, right down to the individual. You become powerless to those you owe money too.

[Jamison]

6. Yep, that's how they'll justify slave labor in debtor's prisons.

If things keep going this way, that's what could happen to people I'm afraid.

"You owe Master Card $20,000 and can't pay it? Off to the Haliburton Debtor's Work Camp for you then. You can work off that balance 7 days a week, 16 hours a day for 10 cents an hour going toward the principal PLUS 80% interest until the balance is paid off...that is if you live that long."

[SoCalDem]

3. It's the Sisyphus effect

Everyone's too busy pushing that rock up the hill, and dare not rest for even a second, lest it roll back down over them..

Eventually, the balances overcome people, but until that happens, they keep on buying stuff and pushing the "payback" off into the future, when "they will be making more, hit the lottery,or inherit some money".. At SOME point it all becomes unmanageable and they either bail out by selling their homes and starting over or blow their brains out..

[Bobbieo]

7. I tore mine up last year!

So, I don't get another used car or the hearing aid I so badly need but I'll live. What the hell? At least I will eat and pay the mortgage.

[CoffeeCat]

4. I agree. with you completely...

I think credit cards enslave people. In the long run, they rob people of funds. Instead of paying $20 for that vase at PierOne--they end up paying $100. Credit cards
enable people to live beyond their means. There is a cost to doing this. Ultimately, you have less money--because you are paying interest on the things you buy. This
keeps people in the cycle of needing credit cards--depending on them.

It's really very sad.

I understand that some people must use them, because times are so tight and emergencies come up. I'm not judging people in dire straights. I just feel that credit
cards do not really help people. They enslave people.

I've also noticed that professionals--who have decent jobs--are finding it hard to make ends meet. I just had a discussion with a friend who is a pharmacist.
He is staying at home with the kids. She is working full time in a big-chain pharmacy. They are scraping by. I know families who make 80k and they are, by no means,
living in luxury. My husband makes a good salary. However, my student loan payments ($1,200 per month) crush us.

If it's not credit cards, it's student loans or other loans--or medical bills. I sometimes feel that the uber upper class is purposely trying to keep the middle
class down. It's not enough for them to eviscerate the poor. It seems like the elite realizes that the middle class may revolt in the near future. It feels as if
they are rendering them powerless by hitting them in the gut, economically.

I look at the loans banks give out. Again, they encourage irresponsibility. With interest-only mortgages, ARMS and all types of creating financing--it appears that
banks loan money, but also they give consumers the rope with which they will eventually hang themselves.

I sense a perfect economic storm that will soon hail down misery and crisis on the middle class.

[Democrats_win]

5. What gets postponed gets worse. Cards charge huge rates!

15% or much more! V for Vendetta applies to the financial industry. People are killing themselves over their credit card debt. People should not feel morally obligated to pay when the high interest rates are themselves immoral. High interst rates are called usury and it's been immoral for thousands of years. It's illegal in 48 states. The only reason it exists in America is because South Dakota and Delaware make it legal. Our "letter of the law" legal system then makes it legal in every state.

The guy from "Network" says, "I'm as mad as Hell and I'm not going to take it anymore." Every day, we see the revolution coming. It's coming and the credit card will insure an early arrival with many more angry at the injustice of our society.

[CoffeeCat]

8. Also....credit cards hide problems...

One more thing...

Credit cards also create the illusion of prosperity. When people buy, buy, buy on their credit cards it makes families appear
as if they have more wealth and income than they really do.

Also...people taking out 2nd mortgages---using their homes as ATM machines--has the same effect.

It's too bad that we're all so materialistic. People used to live on one income with no problem. Now, houses are 4 times the size that they were a few decades ago.
Cars are bigger and more expensive and people think they need all kinds of electronics and extras to survive. It seems as if many people are living foolishly just to
keep up with the Joneses. That's too bad, because the Joneses are a bunch of assholes.

[catmandu57]

9. I know it's happening

But, there's an awful lot of us not living off credit cards, more every day. We don't, I had a brother who did, I don't know what happened with that.
Since the bk bill and the changing of the minimum payment many people are weaning themselves off ccs, going to a cash only basis.

[Johnny Noshoes]

12. Those new minimum payments are killers.

It was going to happen to me but this time around I paid attention to that little notice they stick in when they send you your statment. You know the one with the VERY tiny print and all that legalese. I declined the new terms - in writing of course since that's the only way they'll accept your decision -and the account was closed. Starting next spring when a 401k loan I have is paid off I'll be able to pay off the damn card in 16 months. It will be only cash for me after that's done.

"Stupidity is the basic building block of the universe."
-- Frank Zappa

[mitchum]

10. Why do you think Reagan crony Alfred Bloomingdale pioneered...

the concept with the Diners Club card?
You are absolutely correct.

[Kare]

11. Credit cards are good and bad

They are bad for the obvious reason that people use them too much when they can't really afford things and shouldn't be buying what they are.
You are right that alot of people probably use them to supplement their income too.
My husband has been out of work for two months.. without the credit cards we would have a hard time buying the neccessities. What money we have goes to paying the bills. To conserve the money we use credit cards.
The thing about that that most upsets me is that we had been doing a good job getting the credit cards payed off and had vowed not to use them unless absolutely neccessary.
Now we are going right back to where we started and will have to work that much longer to be out of debt. People can say all they want about trying to save money, but are you really saving money when you have such large credit card bills with interest rates to pay down? Its a catch 22. You either save money or try to pay down the credit cards. Of course in paying down the credit cards you then have "money" to spend if you need it. If you just saved money and didn't try to pay more than the minimum on credit cards then the cards never really go down and you aren't getting anywhere near debt free.
Its really a lose lose situation. You get credit cards to help your credit and then things happen, job lose or unexpected bill when things are tight and then you use the credit card. If you then can't pay off the credit card or don't, then you find yourself paying for it for years and years.

Credit cards aren't the only one to blame though. People are using what money they have in thier house to be able to buy things. Look at the advertisements some mortgage companies run... Get equity out of your house to remodel or just take a vacation.
I can't understand this mentality of getting as much money as you can out of your house every few years. Don't these people understand if their house is never paid for then how are they going to retire? Don't they want to? I know I do. I couldn't afford to though if my house wasn't paid for, who could? Even if you don't intend on living in the home you are in for the rest of your life if you have no equity in it how will you buy a new house without being saddled with more payments?

They should teach financial resposibilty in schools, too many people have trouble with things like saving and credit cards and the consequences of never paying things off. How are they supposed to teach their children? By setting an example of what not to do?

[WestSeattle2]

13. Let's keep things in the proper prospective......

http://moneycentral.msn.com/content/Banking/creditcardsmarts/P74808.asp

Very informative article regarding this issue.....

And really, the folks earning $50,000 who carry $20,000 in credit card debt, are the same idiots buying lottery tickets, leasing vehicles that are way beyond their means, charging exotic vacations, etc.

We all know one or two like them. Their desire to appear wealthy, precludes them from ever being wealthy because of their lousy money management skills. Whose fault is that?

The ONLY folks I feel sorry for, are ones with high credit card debt caused by medical costs. In my opinion, it's abhorrent that citizens in this country stand by and allow economic catastrophe to strike our family, friends, neighbors, co-workers, just because they lost the "health lottery".