The Real Problem with Credit Cards: The Cardholders

[jeffrey]

The problem with the credit-card industry isn't just credit-card companies — it's you too. This week the Senate takes up a bill that would seriously clamp down on some of the industry's most unsavory practices, a piece of legislation that President Obama has said he wants on his desk by the end of the month. The bill, which builds on rules issued by the Federal Reserve Board and other agencies at the end of last year, would do away with interest-rate hikes on existing balances, prohibit issuers from putting customer payments toward lower-rate balances first and abolish the practice of raising a customer's interest rate because he was late paying a bill to someone else.

Credit-card companies, though, may not be the only ones we need to be protected from. Every penny of Americans' nearly $1 trillion in revolving debt started with someone — some individual person — whipping out a piece of plastic and making a decision to use it. We could consider that free will and just call it a day, but there's plenty of reason to believe the story isn't so simple. There are piles of evidence that people are bad decision makers when it comes to how they use credit cards. Even when presented with full and fair information, they often make decisions that are not in their own economic best interest — a reality only partly taken into account by the new rules and pending legislation...

The Real Problem with Credit Cards: The Cardholders - TIME

[disneysteve]

Originally Posted by jeffrey

Every penny of Americans' nearly $1 trillion in revolving debt started with someone — some individual person — whipping out a piece of plastic and making a decision to use it.

I couldn't agree more. I've said many times - it isn't that the credit card companies are evil or that their policies are unfair. The problem is that credit card users ignore the rules. People complain about late fees, over limit fees, interest charges, etc. If you paid on time, didn't overcharge and paid in full each month, those problems wouldn't exist. It isn't the company's fault. It is the user's fault.

[GREENBACK]

I don't think there is anymore dumbing down of people anywhere but I might be wrong and probably am(are you listening B.O.). Maybe there was just a bunch of simpleminded dumbasses to begin with and this whole credit thing is a big bitch slap(pardon the language) to everone that thought credit=free cash.

I don't blame credit card companies at all. When you see a snake you avoid it with all the god given caution you can. That's how I approach the CC companies. I use them and they -try- to use me. If you're not smart enough to realize when you're being taken advantage of maybe you deserve what you get. Bit of a rant on this subject but it gets me going that way.

[GirlyChick]

That's a great thread title haha.

[PrincessPerky]

Big brother can't protect folk from themselves...and shouldn't.

Folk need to learn to stand up on their own two feet. The less involvement by the govt the better.

So long as no one is breaking legs over the money (like literally breaking legs) I see no reason for the govt to pass yet another bill full of loopholes, one that will make Joe credit feel 'safe' as he charges to the cards limit.