No, You're Reading That Right 79.9 percent rate targets credit-challenged

We gotta get more back toward using actual money for the things we buy. You know, credit only in the instances we really need it. Debt has become a way of life, and you get less in return for your hard earned money. That kind of APR is criminal, regardless if it is officially written in to a law to not go that high.

Instead of settling into a debt frame of mind, we need to get back into a "living the dream" state of mind, where if you are to have bigger and better things then you raise your standard and earn more money, not create a huge unpayable debt by living outside your means, and working in low paying jobs. The "American Dream" has been cheapened into crumby paying jobs and obscene credit card debt. And we too often end up with empty pockets in the end.

We've got the ability within our own hands to turn the economy around. The government has it's part in the problem, but ultimately it is up to us to lay down new businesses, create employment, etc. and create the money flows to change the situation for the better. Employers apparently have no clue how to change the situation, because they ignorantly lay everyone off, and in turn end up shrinking their businesses. How the H-E double hockey sticks can you fix an economy by shrinking your businesses? You have to expand your businesses to bring in more money.

If we remove our reliance on credit cards and loans, then I think these bottom feeding crooked banks will vanish due to lack of funding.

Troy

This actually may be more telling than it seems. Has hyperinflation set in and nobody told us? Think about it, they have to get an 80% return on their investment, minus any defaults. I thought this when all the cards started raising their rates.

reply to post by endisnighe

That's a very telling observation. Here we have a huge economy with low-single-digit rates from the Federal Reserve (as we all know) and inflation for 2009 now running in the negative numbers ( source -- scroll down for the table), yet banks still routinely charge 20-plus percent p.a. interest on credit cards and are able to charge more than three times that if they wish.

It's almost as if the banks want to induce a hyper-inflationary state.

By the way, what's the system in the US for calculating card debt? Is the interest accrued as a debt and then also subject to interest? (ie compounded?) And is the minimum payment each month 5% of the debt? If so, then the true debt over the longer term is astronomical!

Just for info, while in the US you can apparently read the fine print to find out the interest rate, for my credit card I actually had to ask them. My bank does not provide any documentation that states the actual interest rate and it's nowhere on their website either. Apparently there's no law that says they have to make it public! My documentation only advises that it is a rate that is fixed by the bank from time to time and that is subject to change. Ain't that sweet?


[edit on 18/10/09 by JustMike]

Originally posted by wylekat
That's STEALING. Plain and simple. I think that bank should be robbed until it folds like a house of cards in a heavy rain. See how THEY like being robbed blind.

The bank's money is YOUR money, if you don't like it then don't bank there (so when someone steals from a bank they are actually stealing your money, don't fall into the 1920s-30s thinking of Dillinger) Microloans in other countries have 100%+ interest rates....you can't speak on behalf of the bank or the person involved, because you don't know what his risk premium is going to be (which is basically what an interest rate is supposed to reflect + inflation...)

[edit on 18-10-2009 by yellowcard]

Rumor has it that First Premier Bank is on the verge of insolvency and this is a last ditch effort to raise capital. As outrageous as this is --- and it most certainly IS outrageous --- we've seen this before when banks are in trouble. I know if I had money in this bank I'd be getting it out ASAP.

While I would certainly deem this as criminal, it's really pretty simple: cut up your cards, pay them off and actually live WITHIN your means. If you can't afford something with the money you have on hand, you shouldn't be buying it in the first place.

We paid off our last card about a month ago and I have to tell you, it's a huge relief. We've made some pretty fundamental changes to the way we live, but you know, in the end, it's removed so much stress from our lives.

Originally posted by surfinguru
While I would certainly deem this as criminal, it's really pretty simple: cut up your cards, pay them off and actually live WITHIN your means. If you can't afford something with the money you have on hand, you shouldn't be buying it in the first place.

We paid off our last card about a month ago and I have to tell you, it's a huge relief. We've made some pretty fundamental changes to the way we live, but you know, in the end, it's removed so much stress from our lives.

That sounds all fine, but what if the something you don't have money for is food? Should you stop eating? Lots of people don't have jobs. Someone without a job would be really tempted to get one of these cards and charge food and other necessities on it out of sheer desperation.

reply to post by Jessicamsa

That sounds all fine, but what if the something you don't have money for is food? Should you stop eating? Lots of people don't have jobs. Someone without a job would be really tempted to get one of these cards and charge food and other necessities on it out of sheer desperation.

I agree.

There are a lot of folks out there who are paying for their basic living expenses with credit cards. It's really unfortunate that many people literally can't live without credit cards...

Another thing to remember when you get those types of offers, and that actually is any card offer, is that even if you do not take advantage of the offer you will find that card is logged on your credit report as a zero balance, with the credit limit in the banks name! I found that out by getting my credit statement from all three major Co.s and saw all these cards I never had but had been sent to me. I always run them through the shredder but they were still on my reports. Better check yours and get them taken off. It can negatively effect your credit!

Zindo