Who's responsible for credit card debt?

[robby]

Who is more responsible for credit card debt, the credit card companies that lend to people they know can't pay if back and in fact don't want to have them pay it back as long as they keep paying the interest each month or the people who use credit cards without fully understanding how much they cost?

[BAGAGT1]

While some of the CC's marketing practices are definitely predatory, ultimately, the responsibility lies with the borrower. I do hope that the financial service firms get their act together sometime soon, there is a lot of abuse of consumer in the whole sector. In an ideal world your bankers, loan officers, insurance agents, mortgage brokers, and stock brokers would try to sell you products and services that would really benefit you rather than pushing products based on the commisions and exhorbant fees they can generate.

[Firefly]

The person with the credit card debt. They should really research the cards they apply for beforehand so they know what to expect.

[sweeps]

I agree. It's the borrower. If someone charges more than they can afford, they're in a world of hurt for months or years to come. Worst case scenario for the CC company: they shrug and write off the 0.0001% hit to their income.

[jmjj215]

The borrower is ultimately responsible.

[frugalfarmwife]

Definately the card holder. I'm so TIRED of this "not my fault" mentality in our society today! People need to be responsible for their own actions.

KJ

[Tree0164]

The person who borrowed the money is responsible.

Pay up if you borrow.

[cercis]

I'd say it's equal responsibility.

The credit cards are in the position of power. No one makes them give credit to anyone (as long as they aren't proven to be discriminating based solely on race or gender). No one makes them raise the credit limits (again with the disclaimer).

Now, no one makes the person charge more, this is true. But, if you have a car breakdown and have no money - which is better? Charging it on a credit card or going to the payday loan places? (assume with me that they live in the area I live in where you cannot get to work without a car, there is no public transportation and no one who can give them a ride)

If the money is available, it is all too easy to charge to cover those unexpected events. And, to a certain extent, it makes the most financial sense to do so (versus losing your job or paying 100% interest to a payday loan place).

The trouble starts when the limit is continually raised so that they charge things they shouldn't charge (new clothes when the other clothes still fit, etc). There is a mentality (which the cc companies prey on) which says "they wouldn't give me this high of a limit if I coudn't afford it".

If I loan money to a friend who doesn't have a job and doesn't show ability to get a decent job, then what do you say to me when he doesn't pay me? "That's wrong, he should have paid, but ... you know ... you should have known he probably wouldn't pay anyway."

[Snoopy2645]

The person using the CC thats the only one responsible.

I am also sick of people saying they are not at fault I see in the paper all the time that file BK for like say 400,000 I just think to myself geez when did they realize they had a problem they didnt think they did tell they hit that much or what

[jodi]

Definitely the borrowers...but to add to that, I think parents need to be more responsible in teaching kids about money EARLY. Of course, that's hard to do if you are drowning in debt yourself. My parents taught us very early the value of earning and saving money, and my brothers and I are very financially responsible. DH's family is just the opposite - running up cc debt, paying high rates of interest due to bad credit scores, etc. The kids learned bad habits from their parents, but thankfully, DH has seen the light and is just as much a saver as me now. But it did take him a while to clean up his credit score.
You can't just let a kid go off to college without teaching him about credit cards - the cc companies prey on college kids. So I think parents need to be responsible too. Of course, the ultimate responsibility lies with the individual still.

[Bruce Wayne]

I really don't approve of people who blame others for their mistakes. It isn't the credit card companies fault if you're in debt, it isn't McDonalds fault if you're fat.

You have a choice regarding debt and getting into it so the buck ultimately stops at you.

[cicy33]

Originally Posted by cercis

assume with me that they live in the area I live in where you cannot get to work without a car, there is no public transportation and no one who can give them a ride)
."

Hey that is where I live!! How did you know?? Are we neighbors? Seriously it is always the borrowers fault. only you can stop charging.

[TBH]

Originally Posted by BAGAGT1

In an ideal world your bankers, loan officers, insurance agents, mortgage brokers, and stock brokers would try to sell you products and services that would really benefit you rather than pushing products based on the commisions and exhorbant fees they can generate.

Too true. When we applied for our mortgage loan, they approved us for an eighty-ten-ten loan configuration that would have allowed us to buy a 300K house. When I told the loan officer that I didn't think we could afford that, she acted shocked. "We would never approve you for more than you can afford," she said.

We could have maybe stretched ourselves extremely thin and bought a 140K house, but instead we bought what we could truly afford: a 90K house (including renovations). Thank god we did. I already feel strapped enough. What if I had listened to them and was now paying down a 250K mortgage? I'd be crying now.

[PrincessPerky]

I'll go with borrowers fault too.

Thats why my signature says 'you didn't take it, I gave it to you'

[PRICEPLUS]

Borrowers are responsible for the debts.

I think that the card companies leave something to be desired when it comes to honesty with fee and such!

[seaar2000]

Frugalfarmwife I totally agree with you! I get so tired of whinny people who say it's not my fault. If you decide to get a credit card you know the responsiblity of getting that credit card.