Credit cards: the next big financial crisis?

[Cratermaker]

There was an article in the paper today about this. Actually, I have seen this coming for years. Some say it's the credit card companies fault, some say it's personal responsibility. I say it's greed, plain and simple, all the way around.

Instead of me linking to a single article, just google "next credit crisis credit cards" and you'll get LOTS of stuff to read. Scary....

[MudMarine]

Hell, my dog could get a credit card! They even want to give them to illegals!! Credit is just one big joke now, it used to mean something. Yes, we're all in BIG trouble because of greedy scumbags.

[lifejogger]

No problem for me, I do not carry a balance on my credit card.

[OBIO]

My "credit card" is just my VISA Check Card....it's a Debit Card that can be used like a Credit Card. Interest free, money comes directly from my checking account. I can only spend the amount of money that I have.

OBIO

[cheezyflier]

i purposely kept my limit low to avoid trouble.

[Willy]

Mine is like Obio's. I used to have regular ones, but paid them off and cancelled them several years ago. I don't miss them or the monthly bills one bit. Probably one of the smartest things I've done in a life of doing dumb things was to clear out all the bills just before I retired from the Navy. That and marry Mrs Willy.

[Piglet]

Just like OBIO, only spend what I have. One reason I lead a simple life, to have more money saved up for the unexpected. Sure it's alot of card company mismanagement and greed, but it does come down to personal responsibility.

[flyinjake]

I use a regular credit card and pay the balance every week. Its nice only having a small house payment, and utilities. If I do not already have the money....then I do not need it.

[lefty]

Well I'm one of the ones who didn't do any huge spending but watched my balance creep up over the years - paying interest to the banks is a mugs game.
Fortunately I was able to clear the whole thing in one go thanks to a windfall, and use the same system as OBIO - we call them debit cards - I only spend what I've got in the bank.

Big problem is, how long is the bank going to be there ??? !!!:banghead:

[hey_moe]

Linda and I use a debit card only. I was sick of recieving mail on credit card and phone calls about a super deals they can give us. Once we joined Life Lock the mail and the phone calls stopped. I don't feel sorry for the credit card companies because I noticed when a customer got to there limit the credit card company would just raise the limit. As far as the car dealership are concerned they did the same.:isadizzy:

[lefty]

There is one plus point about credit cards - you do get considerable protection from fraud when paying by credit card - there are other perks like travel insurance too.

But you must keep control over them !

[JoeW]

In 1971 my first wife wanted a divorce. While separated, she ran up about $7,000 on credit cards. I worked 2 jobs to get out of debt and that took about 4 years.
I now have a Debit card. Thats all I need. I married again but I made sure I had all the crads that time. I cancelled them all at that time. Drawin' Social Security now and single. I have that protection now too with the debit.
Life is good.
:costumes:

[Rami]

I have credit cards, but know how to use them properly. It's simple....don't spend what you don't have. :d

[Moparmike]

I have credit cards, but know how to use them properly. It's simple....don't spend what you don't have. :d

Yup, I agree with Rami, Lifejogger, and the others here following this doctrine.

I use a couple credits cards (that have "cashback" programs) regularly...but not as a "portable lenders"...I don't charge more than I've budgeted for and they get paid off every month.

I pity the poor folks that keep letting that balance build & build & build. Once you get even one month behind it can take several months or years to dig yourself out of that credit hole. Too bad more folks can't see this before they get into that situation!

[Jagdflieger]

I wonder who the dumber party is... The banks for handing out credit cards to high risk customers, or the high risk customer thinking everything would end up being free when he used the card? The greed on both sides of the equation is unbelievable and I think both sides should pay their bills. It should not be up to the honest taxpayer to bail them out yet again.

Credit isn't free and it's a damn shame our government has figured that out yet. If our government would have run their finances like most responsible people do, we'd never be in the economic mess we are in now.

Hmmm. I guess I come across as just a little peeved over the whole issue... I'm afraid that the 850 Billion just paid out by Congress is going to look like chump change before this is all over.

Please see Mark Twain's quote below my signature.

[GT182]

Actually creditcards have always been a big financial crisis..... ever since they were made available to the public. Just ask anyone with a large creditcard debt. ;) :costumes:

[brad kaste]

...If I may 'parrot' what most of you've already stated,..."If ya' don't have the money to back it up, don't buy it on credit." It was a simple philosophy that my dad used that rubbed off on all us kids. It really amazes me,...but maybe it shouldn't...how individuals put themselves into the credit wringer. And then have the chickens come home to roost.
Knowing some persons who've already gone through bankruptcy, intelligence has nothing to do with it. The lack of common horse sense surely prevails.......

[MCDesigns]

I wonder who the dumber party is... The banks for handing out credit cards to high risk customers, or the high risk customer thinking everything would end up being free when he used the card? The greed on both sides of the equation is unbelievable and I think both sides should pay their bills. It should not be up to the honest taxpayer to bail them out yet again.

Credit isn't free and it's a damn shame our government has figured that out yet. If our government would have run their finances like most responsible people do, we'd never be in the economic mess we are in now.

Hmmm. I guess I come across as just a little peeved over the whole issue... I'm afraid that the 850 Billion just paid out by Congress is going to look like chump change before this is all over.

Please see Mark Twain's quote below my signature.

AGREED!! I have one card used for emergencies only and they keep raising my limit even though I never use it, I guess they are just waiting for me to snap and spend 8 grand on something, LOL.

I lean more towards lack of personal responsibility being at fault more than anything else, sorry, but people just have no clue. I listen to a financial call in show, Dave Ramsey, and I am just amazed at the amount of call ins where the people are making 30 grand a year, have a 2 grand house payment, 20 grand of student loans, 10 grand of card debt, 2 car payments AND THEY HAVE NO CLUE WHY THEY CAN'T MAKE ENDS MEET!!!! IDIOTS! :banghead:

[stansdds]

I don't carry a balance on my card, but there was a time in my life when I did. I finally paid off the darned thing and now I use it like a check, if there isn't enough money in the bank, it doesn't go on the card.

I know plenty of people who do carry balances, some are scary high balances and I wonder how many will default on their cards.

[monk1]

No problem for me, I do not carry a balance on my credit card.

Is is your problem, you're the one who's going to have to bail out the irresponsible people.:d

[stansdds]

Is is your problem, you're the one who's going to have to bail out the irresponsible people.:d
That may be at least partially true in the form of annual dues. I wonder how long before we see a return to the annual fee for the privilege of having the card. Merchants will probably start paying out a higher percentage of their credit card sales to the card companies as well, maybe annual fees too. I know American Express now charges a monthly fee to anyone who accepts AMEX cards.

[Cratermaker]

EVERYBODY pays for those that abuse credit cards. Think about it: people buy stuff beyond their means, driving up demand higher than it should be, driving up prices on everything. We all pay, whether we have a credit card or not.

Same thing happened with houses, except it was mortgages beyond their means. Did everyone really expect houses to go up 10% in value a year for infinity? (I think they did :banghead: )