Got another advertised credit offer- Ohmyfreakinghell....

[Mother Of Four]

No wonder people are so over their heads...I started shredding the offers over two years ago when the default rate in the information section was 21+ for the "Send a card offer every week" people.

Now the default rate on this last one was 30.99?

Let me repeat that....THIRTY POINT NINE NINE!

Out of morbid curiosity, I punched into a calculator how long it would take to pay off a balance of 1000.00

Would you belive the first few calcs I tried wouldn't even go to 30.99? They capped at 30.

At 30%, "By only making minimum payments it will take 292 more payments or 24.3 years to pay off the remaining balance. Interest will amount to $3,726."

24 years.

Oh...and the 30.99 is variable as well.

Freaking vipers.

[Greyhound]

1. Americans pay a wide variety of "I can't do math" taxes.

It's one of Wall Street's most effective tools.

[daninthemoon]

2. it's not just the default rate. some of my cards have arbitrarily jacked up

my rates with no apparent reason except that they could. I suspect that the mortage crisis has an almost equally devistating cousin in these predatory credit card companies. personally, my mortage is ok, but I could use a card bailout, and i suspect that most Americans could also. I understand that the first priority needs to be trying to keep people and families in their homes, but this needs to be adressed as well. citibank got bailout money, then jacked up my interest for no reason. The President needs to cap these rates as part of bailout conditions. we're all getting hit twice. what kills me though, is that if citibank went under, I'm sure my debt would somehow be bought up by another bank. all these bank bailouts and I'm still on the hook no matter what.

[Atman]

3. My card played a sneaky one...they didn't lower my limit or raise my rate...

Instead, I noticed on my last statement that my "available cash" balance, usually the same amount of available credit, was reduced to about a quarter of my credit limit. I never use my credit card for cash advances anyway, so it really doesn't impact me. But apparently the card issuer is concerned enough about people just taking all the cash available on their cards and then walking away from the debt.

.

[daninthemoon]

6. I feel like if they keep squeezing me, I just might go bankrupt on their

asses. it's the only weapon I have at this point. now, I'm not in desperate straights or anything like that, but why should I have to put up with their shell game? I feel like saying: " go ahead. just one more card raise my rates and see what happens." it alos seems like the fat cats are making grabs for all the cash they can get while they can. all I know is I really hope that the administration goes after these credit card guys soon. also, while so much of America citizen's collective income is payings interest to these robber banks, their money is less available for spending, so prolongs the recession.

[2Design]

8. look for zero percent cards for purchases - open one

then stop using all your other cards during that time period and pay them down

[daninthemoon]

9. i haven't used any cards in months. i don't have a problem

making the payments, but it's a matter of justice. If I follow the agreement and pay on time every month, I shouldn't have my rates raised. it's extortion.

[2Design]

13. I have put a note in my bill paying book that is highlighted saying

to remember these are loan sharks just waiting for me to misstep so they can swoop in and slam me with fines - these are like the mafia loan sharks that were illegal - they don't use bats, or concrete anymore - it is much worse - congress helps them wrap you up and drown you when you are hurting by slapping ridiculous fees on you and then make bankruptcy laws to make sure we can't get away once tied up - yes it is legalized loan sharking and they have congress helping them

[lazer47]

4. There are laws presently on the books

that deal with "shy locking" (excessive interest), if you are a bank it is over looked if you are a private individual doing it, you can go to jail for 5 to 10 yrs, we used to put mafia type folks in prison for doing the same thing.

[MattBaggins]

11. Shy locking?

Perhaps that word doesn't mean what you think it means?

That is not an acceptable term to use. It may represent over charging interest but derives from a derogatory term for Jews; coined by Shakespeare.

[ejpoeta]

12. i thought it was called loan shark. what are the rates of loan sharks! geesh!

[MattBaggins]

14. It's past is fuzzy

Shylock was the Jewish character in "The Merchant of Venice" who was a stereotypical loanshark. Shakespeare tried to portray him as a normal human being but unfortunately his name only became synonymous with "jewish loanshark". Shylock is and should be a taboo word since it has been used historically as a code word for the stereotype of Jews as loansharks.

[ejpoeta]

15. thanks for the info. i had never heard the term before.

[Sal Minella]

16. Didn't one of the Popes decree that charging interest was a sin, because time belongs to God?

So Christians were forbidden to make money by lending money, but there was no such proscription in Mosaic law.

Jews could loan money and charge interest because their religion didn't forbid it -- Jews got into money-lending and banking because the need was unfilled by devout Christians (who wanted to make a profit). The need was there. Witness what lack of borrowing-and-lending capacity has just done to our economy.

[lazer47]

17. Acceptable to who??? Me, DU, or Shakespeare,,????

If it personally offends you, I am sorry for that, however it is an accepted term used in referring to "the pound of flesh" that most banks now charge........

[KharmaTrain]

5. They Do It Because They Can...Repeal The '05 Bankruptcy Bill

This predatory usery and lending is just one game the banks are using to try to raise as much cash as they can as quickly as they can. It's to cover their "assets" and replace fees and losses from the market collapses. Yep, those who are in the least position to pay are the ones paying the most. And it's all legal. Thanks to the '05 bankruptcy bill.

The flip side is that the more debt the bank puts on its books, the more bail out it will get...and while they won't take it on with real estate or business, they'll sure dig someone into a deeper hole in hopes that those losses on the books mean more money from the taxpayer.

This regressive travesty and sell out to the big banks needs to be repeal and fast. Caps need to be put on interest rates and personal confidentiality laws restored so that one company can't pry into your finances and arbitrarily raise rates due to a missed payment that has nothing to do with their business or your account.

The upshot is thse high rates are making people think twice about using plastic. The credit card companies have long preyed on those they could revolve into financial servitude and it's time to break that cycle and their addiction to this "juice" as their prime source of revenue.

[daninthemoon]

10. i suspect that part of their business plan is to get people overextended on cards

which forces them to take a new or 2nd mortage, so the banks can grab houses. that is now also part of the current mortage meltdown toxic asset mess. the banks got what they wanted and now the realities of overinflated home prices is catching up. we all need a do-over.

[radfringe]

7. have you seen the new commercial?

It's a combined credit card industry one - says they know times are tough, call them if you are having problems with payments. they will work with you...

yeah...right - my partner did that over the weekend, complained because capital one hiked the rates. No help there. She payed off the balance and canceled capital one.

on edit: and yes, capital one was one of the cards featured in the "concerned" commercial

if they were really concerned they would be lowering the rates as a way of sharing the sacrifices.