Its happening: refuseing credit cards in worsening global financial crisis

In Russia retailers are refusing credit cars over fear of the banks not paying up.

If this spreads to the USA it will be utter panic by the consumer, bank runs could start.

Link to article

It doesnt surprise me at all really. Just last week there was a tiny snippet on cnbc about how citi was going to have over 100 million in charge offs at the end of the year. That is just one of the cards they carry by the way, and there are hundreds more of these companies that are going to do the samething. With the economy the way it is you can bet that the so called insurance they have on the debts isnt going to kick in. Therefore they are all broke already and are just biding their time till the wall falls and everyone sees what is really going on. Kinda like the housing industry if you ask me.

D'ont you think this could be a good thing? Debt is a noose round your neck.A world where CASH is king would defo be a better place.Most of the C*** we buy we d'ont really need anyway!Debt is enslavement-you've got to resist the capitalist BRAINWASHING folks to be truly free.

90% of the people with credit cards should never have gotten them in the first place. It wasnt until government forced banks to give credit to the uncreditworthy then promised to insure all the terrible credit that these people were able to get them.

Believe it or not it used to be a real pain to get credit cards and their everyday use was unheard of. You had to meet face to face, prove income, job security, savings, wear a suit and maybe after a lengthy in person review process you might be accepted.

Now bums on benches are somehow getting those awful pre-approved snail mail spam.

The system deserves what it gets.

If CC's start getting denied wide-scale I say HOORAY.

Realize many Americans use credit cards for daily purchase, many just pay off the balance monthly , some dont, and many cash strapped people are using the credit cards to get the necessities now.

Also if retailers stop taking credit cards then that means debt cards too, I like many people have a debt card and dont even carry checks just use my debt card..

Now if you use stop taking credit cards thinking banks wont pay up then why would you take a check.. see the cascade effect here.. it the one little crack that become a huge gaping hole.. once the trust in banks starts to errode the only thing that will be accepted is cash.. imagine if the use economy would need to only use cash, no checks , no electronic transfer via credit/debt cards.. that would cause a run on the cash reserves in the banks.. the banks would not have the cash on hand to meet the demand, bank runs would start and the entire economy would collapse.

Its like yelling fire in the theater, all it takes is one small slip up and the panic will start, causing a domino effect.

Building house's of cards is cool and quite impressive but its very very risky.. the banking industry is just that , banks lend out 10 - 15 times the cash they have on hand, they really mainly in this day and age on electronic cash, they dont have the cash reserves to cover the needs of there customers.. all they have are these digital ones and zeros now.. when the digital ones and zeros don't work, people will go to the banks to get physical cash, they will not have the cash that people have in there accounts.

All it will take is a few banks closing there door due to not having cash and it will start bank runs on all banks, draining the entire system of cash.

Here in So California there are lot's of places that don't accept credit cards,seems majority of small buisness say that dealing with CC companys is becoming a chore so they do accept a debit or cash

In a nation that lives on revolving debt and credit cards this is not good news, as we are not wealth builders but consumers.

What many forget is that Americas economy depend on consumerism and credit is part of the economy right now in order to survive.

Since the 1970s Americans have been saving less and less, increasingly living off credit.

www.nytimes.com...#

Non-mortgage consumer debt for American consumers is $2.58 trillion. Americans owe another $10.54 trillion in mortgages. The average American family owes roughly $117,951 while saving a mere $392 per year.

Americans have also developed an obsession with plastic. The average family owns 13 credit cards, owing an average of $8,400 on those cards and paying $950 in credit card interest each year. Last year, Americans made over $1.5 trillion in credit card purchases.

How does your debt compare?A snapshot of American debt shows a troubling picture


moneycentral.msn.com...

I just opened this thread on the US financial woes.

www.abovetopsecret.com...'

Originally posted by marg6043
How does your debt compare?A snapshot of American debt shows a troubling picture

I use my CC to make purchases over 1K then pay the balance before the period ends and the penalty of interest gets thrust upon me.

I recently spent over 1K on various gun parts (thanks Obama) and paid it when I got home.

So, no debt. Actually my CC has a positive balance of $16.00

Save at least 20% on every paycheck/equivalent.

Eat rice and lentils if you have to.

When I had enough for a down payment on a home I couldnt get a loan unless it was on the banks terms lending me more than I needed. It was like the bank wanted me to have to default so they could take the house. I never got a loan and have since spent most of the down payment I had saved moving to another state and starting a new job and whatnot.

By the time I get another down payment together I'm sure the market will be all artificially inflated again and I wont be able to realistically afford anything and the banks will try to force me to take way more than I need or can afford to pay back saying "oh you make 30K well of course you can afford this $450K home. We have programs for you."

If you behave yourself and act responsibly in America you wont get anywhere. If you're a drunk or a bum or blow all your cash on toys and electronics government wants you to live in a mansion at my expense. Wonderful system we've developed here.

Let this garbage fake-as-hell economy collapse. I'm begging.

Ha I havent had a credit card in YEARS and when our kids got old enough to start traveling where ever with out a sitter we got a PRE PAID CARD for the reservations. Then paid CASH when we got there. It isnt hard to do, if you cant pay for the trip or that dress or the shoes with cash on hand you dont need it.
And by the way I like lentils

I have been with out a credit card for several years now. It is really not that difficult to learn with in your means and if you do, you don't even need a credit card even for emergencies or what not.

This will defnitely stink...I have a credit card and use it.Not everyone is so irresponisible with credit.I charge all my monthly purchases and pay it in full every month.I also have NO DEBT,NO car payments, and have less than 5 yrs on my mortgage..At this point i also took a MAJOR hit on my retirement 401K.I am only 34yrs old, so if everything manages to hold together I may not be able to retire...big shocker

The craziest thing is that in many states it is easier to walk away from a mortgage than to discharge credit card debt. The bankruptcy law changes pushed through a few years ago have contributed to the sorry state of affairs that our financial system is in. If you are a business and you file bankruptcy you can discharge almost all non-secured debt, but if you are a private person you most likely cannot.