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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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I Have a Question About this Financial Mess...
A contributing factor to people being in trouble financially is their CC debt.
So this got me thinking without giving anyone "bailout money" why doesn't the gov't force the CC to lower their interest rates and fix them at something more reasonable, like say 2-3% and while their at it maybe freeze fees?
I'm sure if these rates were lowered and fees stopped it would ease the burden of some, no? Not to mention, the CC companies would still get what's owed to them and still make some money through (the significantly lowered) interest rate.
Am I way out of my mind here or what?
Thoughts? Opinions?
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Posted 10/16/08 6:14 PM  |
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bluegreen08
LIF Adolescent
Member since 10/07 574 total posts
Name:
a
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Re: I Have a Question About this Financial Mess...
again, it penalizes those of us who dont have any CC debt..... if the taxpayers are asked to cover the difference.
if the credit card companies took the hit, it would be different, and i might be more in favor of that after hearing more info......
but i feel like if the govt bought up everyones credit card debt, refinanced it lower, and had the taxpayers take the loss then it's just like mccain's mortgage plan 
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| Posted 10/16/08 6:17 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: I Have a Question About this Financial Mess...
I think it's a great idea- as long as the government doesn't make up the difference
people are defaulting on CC at record rates
if they worked with people- they might actually get paid
I have 1 card that is tied to the prime rate- and the rates drops every time the fed drops the rate- they should all be like that IMO
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| Posted 10/16/08 6:20 PM |
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Re: I Have a Question About this Financial Mess...
I have to think about this one. If this can be done, then people who have some credit card debt but are not totally over their heads, will be better able to afford their debts. This may help them get out of debt and free up more money for consumer spending. It definitely helps the group of people who have mderate debt. It may not help those with no debt or those who are in way over their heads. I'd also like to see some better enforcement of Fair Debt Collection laws.
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| Posted 10/16/08 6:23 PM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by bluegreen08
again, it penalizes those of us who dont have any CC debt..... if the taxpayers are asked to cover the difference.
if the credit card companies took the hit, it would be different, and i might be more in favor of that after hearing more info......
but i feel like if the govt bought up everyones credit card debt, refinanced it lower, and had the taxpayers take the loss then it's just like mccain's mortgage plan
I don't think you're understanding what I'm saying...
I'm not saying the gov't buys the debt, they just make the CC companies LOWER the rates on ALL their customer's cards.
I'm saying let the CC companies KEEP the debt they have with their customers just have the gov't make them lower the interest rates on ALL of their customer's accounts.
The ONLY loss I can see is the money they would have made on the customers with higher interest rates, which is moot b/c if they're not paying and defalting then they're making NOTHING on them. Right?
To me it's a win/win situation.
I guess I'm saying that CC companies could be considered predatory lenders too, no?
Edited to further clarify my point.
Message edited 10/16/2008 6:26:56 PM.
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| Posted 10/16/08 6:23 PM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by Beth1210
I think it's a great idea- as long as the government doesn't make up the difference
people are defaulting on CC at record rates
if they worked with people- they might actually get paid
I have 1 card that is tied to the prime rate- and the rates drops every time the fed drops the rate- they should all be like that IMO
Nope the gov't doesn't make up ANYTHING.
The CC companies just LOWER their rates.
Why has NO ONE thought of this?
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| Posted 10/16/08 6:24 PM |
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Re: I Have a Question About this Financial Mess...
Posted by Jennie0898
I guess I'm saying that CC companies could be considered predatory lenders too, no?
ABSOLUTELY.
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| Posted 10/16/08 6:24 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: I Have a Question About this Financial Mess...
Posted by Jennie0898
Nope the gov't doesn't make up ANYTHING.
The CC companies just LOWER their rates.
Why has NO ONE thought of this?
we can we write to?
I will take up this cause with you
let's try to do something!
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| Posted 10/16/08 6:25 PM |
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1stimemom
Love my boys
Member since 2/08 8766 total posts
Name:
Mrs Dee
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Re: I Have a Question About this Financial Mess...
I think you have a great idea here. I hope one of the candidates think of this!
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| Posted 10/16/08 6:26 PM |
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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: I Have a Question About this Financial Mess...
I'm just so sick of people with big eyes and a sense of entitlement getting ridiculous windfalls while those with se;f restraint who deprive themselves get nothing--and may be asked to contribute.... 
Yes, I know that not everyone with cc debt is entitled, but it's relative. I kow of no one with cc debt that doesn't buy new clothes each year, own at least some nice bags, lease or own a nicer car than she could, etc.
I also know many people who are in no debt who are far less likely to buy a bag/take a cab/ own lots of outfts or shoes, etc. irrespective of how much or little they earn.
In other words, my experience has been that there are few (but some) people who truly live within their means and couldn't cut back more if they had to....
So, yes, I tend to associate cc debt that requires "rescuing" with someone who is unwilling to make possible (but distatsteful) cutbacks. I don't want to endorse that rescue--no matter who's paying.
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| Posted 10/16/08 6:26 PM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by seaside
I'm just so sick of people with big eyes and a sense of entitlement getting ridiculous windfalls while those with se;f restraint who deprive themselves get nothing--and may be asked to contribute....
Yes, I know that not everyone with cc debt is entitled, but it's relative. I kow of no one with cc debt that doesn't buy new clothes each year, own at least some nice bags, lease or own a nicer car than she could, etc.
I also know many people who are in no debt who are far less likely to buy a bag/take a cab/ own lots of outfts or shoes, etc. irrespective of how much or little they earn.
In other words, my experience has been that there are few (but some) people who truly live within their means and couldn't cut back more if they had to....
So, yes, I tend to associate cc debt that requires "rescuing" with someone who is unwilling to make possible (but distatsteful) cutbacks. I don't want to endorse that rescue--no matter who's paying.
I Repeat no one would be paying besides those people with CC debt.
Please re-read what I wrote!
No one is getting bailed out.
The government is not paying the tab.
Edited to remove the unnecssary caps.
Message edited 10/17/2008 12:18:13 PM.
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| Posted 10/16/08 6:28 PM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by Beth1210
Posted by Jennie0898
Nope the gov't doesn't make up ANYTHING.
The CC companies just LOWER their rates.
Why has NO ONE thought of this?
we can we write to?
I will take up this cause with you
let's try to do something!
I have NO idea where to start, but I would love to do something to get this idea out there.
Anyone have a suggestion?
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| Posted 10/16/08 6:29 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: I Have a Question About this Financial Mess...
Posted by seaside
I'm just so sick of people with big eyes and a sense of entitlement getting ridiculous windfalls while those with se;f restraint who deprive themselves get nothing--and may be asked to contribute....
Yes, I know that not everyone with cc debt is entitled, but it's relative. I kow of no one with cc debt that doesn't buy new clothes each year, own at least some nice bags, lease or own a nicer car than she could, etc.
well as someone that is in CC debt b/c of medical expenses and prescriptions
(and loss of income do to medical issues)
I have to disagree
in the past 2 weeks- my husband needed $1200 of uncovered prescriptions to function
I am just glad I have the credit to manage it until we get our settlement $$$
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| Posted 10/16/08 6:30 PM |
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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: I Have a Question About this Financial Mess...
I did read what you wrote. I don't see why people who borrowed money at xyz rate should have the difference between what they borrowed it at and what they wish they had borrowed it at forgiven. Sorry. The cc companies are just like any other lenders--entitled to enforce the contracts people have willingly entered into with them.
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| Posted 10/16/08 6:31 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: I Have a Question About this Financial Mess...
Posted by seaside
I did read what you wrote. I don't see why people who borrowed money at xyz rate should have the difference between what they borrowed it at and what they wish they had borrowed it at forgiven. Sorry. The cc companies are just like any other lenders--entitled to enforce the contracts people have willingly entered into with them.
CC have been rasing rates for no reason for years
they can lower then for any reason also
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| Posted 10/16/08 6:33 PM |
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banda61007
LIF Infant
Member since 7/07 296 total posts
Name:
Bonnie
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Re: I Have a Question About this Financial Mess...
Posted by Jennie0898
Posted by seaside
I'm just so sick of people with big eyes and a sense of entitlement getting ridiculous windfalls while those with se;f restraint who deprive themselves get nothing--and may be asked to contribute....
Yes, I know that not everyone with cc debt is entitled, but it's relative. I kow of no one with cc debt that doesn't buy new clothes each year, own at least some nice bags, lease or own a nicer car than she could, etc.
I also know many people who are in no debt who are far less likely to buy a bag/take a cab/ own lots of outfts or shoes, etc. irrespective of how much or little they earn.
In other words, my experience has been that there are few (but some) people who truly live within their means and couldn't cut back more if they had to....
So, yes, I tend to associate cc debt that requires "rescuing" with someone who is unwilling to make possible (but distatsteful) cutbacks. I don't want to endorse that rescue--no matter who's paying.
I REPEAT NO ONE WOULD BE PAYING BESIDES THOSE PEOPLE WITH CC DEBT.
PLEASE READ WHAT I'M WRITING!
NO ONE IS GETTING BAILED OUT.
THE GOVERNMENT IS NOT PAYING THE TAB.
I think it is a great idea in theory and is good that the govt wouldn't pay, but someone is going to have to make up the difference or the cc companies would never do it. It isn't realistic because it makes no sense for them as a business. It is better for them to just collect interest, that than to have people pay off their debts... that is how they make all their money
Edited for embarassing grammar.
Message edited 10/16/2008 6:34:44 PM.
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| Posted 10/16/08 6:33 PM |
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Re: I Have a Question About this Financial Mess...
Posted by seaside
I'm just so sick of people with big eyes and a sense of entitlement getting ridiculous windfalls while those with se;f restraint who deprive themselves get nothing--and may be asked to contribute....
Yes, I know that not everyone with cc debt is entitled, but it's relative. I kow of no one with cc debt that doesn't buy new clothes each year, own at least some nice bags, lease or own a nicer car than she could, etc.
I also know many people who are in no debt who are far less likely to buy a bag/take a cab/ own lots of outfts or shoes, etc. irrespective of how much or little they earn.
In other words, my experience has been that there are few (but some) people who truly live within their means and couldn't cut back more if they had to....
So, yes, I tend to associate cc debt that requires "rescuing" with someone who is unwilling to make possible (but distatsteful) cutbacks. I don't want to endorse that rescue--no matter who's paying.
I deal with people who are in debt all day long. Most of them have suffered a job loss, unexpected medical bills or maybe they did charge too much but once it got out of hand, they tried to save themselves. Once a person misses some payments the fees and rates are ridiculous. There are many, many people who are not overspending but just can't pay the CC bills. They have nothing at all to show for the big CC bills. In many cases people who have CC debt have already paid back so much money in fees and interest that the bank does not stand to lose even if they stop paying.
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| Posted 10/16/08 6:34 PM |
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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: I Have a Question About this Financial Mess...
Posted by Beth1210
Posted by seaside
I'm just so sick of people with big eyes and a sense of entitlement getting ridiculous windfalls while those with se;f restraint who deprive themselves get nothing--and may be asked to contribute....
Yes, I know that not everyone with cc debt is entitled, but it's relative. I kow of no one with cc debt that doesn't buy new clothes each year, own at least some nice bags, lease or own a nicer car than she could, etc.
well as someone that is in CC debt b/c of medical expenses and prescriptions
(and loss of income do to medical issues)
I have to disagree
in the past 2 weeks- my husband needed $1200 of uncovered prescriptions to function
I am just glad I have the credit to manage it until we get our settlement $$$
Gonna quote myself on that: "In other words, my experience has been that there are few (but some) people who truly live within their means and couldn't cut back more if they had to...." There are clearly some people oout there that cannt cut back on what they're buying because they're spending $$$ on essentials, not luxuries. Medical expenses that drain people's accounts are clearly differnet than entitlement that does the same thing.
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| Posted 10/16/08 6:34 PM |
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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: I Have a Question About this Financial Mess...
I do think that the laws and policies of our country should incentivize people to do what many of us are already doing:livingwell below our means and making sacrifices so that we can be as self sufficient as possible in the face of the unexpected. But as I said, there will always be people with so little and/or so much unexpected that they really can't do any more than they're doing....
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| Posted 10/16/08 6:36 PM |
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bluegreen08
LIF Adolescent
Member since 10/07 574 total posts
Name:
a
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Re: I Have a Question About this Financial Mess...
Posted by Jennie0898
Posted by Beth1210
I think it's a great idea- as long as the government doesn't make up the difference
people are defaulting on CC at record rates
if they worked with people- they might actually get paid
I have 1 card that is tied to the prime rate- and the rates drops every time the fed drops the rate- they should all be like that IMO
Nope the gov't doesn't make up ANYTHING.
The CC companies just LOWER their rates.
Why has NO ONE thought of this?
I can see both sides to that. On one hand, they entered into the agreement and should be bound by it. On the other hand, many people have gotten in over their heads.
What I would propose alternatively is an upfront set rate that the credit card company can't change when they feel like it. If you sign up when their rate is 10%, your rate is 10% and they cant up it to 20% just because they feel like it. I'm not sure how things are right now, but I think the fine print usually says they have the right to do that.
I dont necessarily agree that having them lower the fees is any better -- i think that encourages people to live even more beyond their means, it increases everyone's sense of entitlement, and i think the credit card companies ARE entitled to make a profit.
The reason I asked if the govt would be picking up the tab on the difference is because that's McCain's proposed mortgage plan (originally the plans were to have the lenders take the loss, but now he's proposing to have the govt buy it out and have the taxpayers make up the losses).
I guess as I typed this out I realized I don't agree with your proposition, it might sound like a good idea on its face but when you think about what it would actually do it's not really the perfect idea it seems to be. However, I am not opposed to increased regulations with respect to credit card companies and maybe some kind of cap (not 2-3% but something else).
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| Posted 10/16/08 6:38 PM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by seaside
I did read what you wrote. I don't see why people who borrowed money at xyz rate should have the difference between what they borrowed it at and what they wish they had borrowed it at forgiven. Sorry. The cc companies are just like any other lenders--entitled to enforce the contracts people have willingly entered into with them.
But that's not always the case. How many times have we seen here that people who DO pay on time and DO NOT carry a balance and yet their CC interest rates were moved up for NO reason.
That's not fair.
Or for that matter, I'm sure a GREAT number of people signed up for a CC with a LOW interest rate and then who knows hit hard times, got laid off, got sick and needed those CCs but fell behind in payment.
Why can't these people get a helping hand?
It's not like the CC companies wouldn't earn money off these people, they just wouldn't earn 30%.
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| Posted 10/16/08 6:41 PM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by banda61007
Posted by Jennie0898
Posted by seaside
I'm just so sick of people with big eyes and a sense of entitlement getting ridiculous windfalls while those with se;f restraint who deprive themselves get nothing--and may be asked to contribute....
Yes, I know that not everyone with cc debt is entitled, but it's relative. I kow of no one with cc debt that doesn't buy new clothes each year, own at least some nice bags, lease or own a nicer car than she could, etc.
I also know many people who are in no debt who are far less likely to buy a bag/take a cab/ own lots of outfts or shoes, etc. irrespective of how much or little they earn.
In other words, my experience has been that there are few (but some) people who truly live within their means and couldn't cut back more if they had to....
So, yes, I tend to associate cc debt that requires "rescuing" with someone who is unwilling to make possible (but distatsteful) cutbacks. I don't want to endorse that rescue--no matter who's paying.
I REPEAT NO ONE WOULD BE PAYING BESIDES THOSE PEOPLE WITH CC DEBT.
PLEASE READ WHAT I'M WRITING!
NO ONE IS GETTING BAILED OUT.
THE GOVERNMENT IS NOT PAYING THE TAB.
I think it is a great idea in theory and is good that the govt wouldn't pay, but someone is going to have to make up the difference or the cc companies would never do it. It isn't realistic because it makes no sense for them as a business. It is better for them to just collect interest, that than to have people pay off their debts... that is how they make all their money
Edited for embarassing grammar.
It's gotta be better than people going bankrupt and them not getting a red cent, no?
Just because these people's balances are accruing the interest doesn't mean they can PAY it.
I'm saying lower the interest rate and they'll see their money along with profit.
Surly that's got to be a better option than getting nothing at all.
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| Posted 10/16/08 6:43 PM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by seaside
Posted by Beth1210
Posted by seaside
I'm just so sick of people with big eyes and a sense of entitlement getting ridiculous windfalls while those with se;f restraint who deprive themselves get nothing--and may be asked to contribute....
Yes, I know that not everyone with cc debt is entitled, but it's relative. I kow of no one with cc debt that doesn't buy new clothes each year, own at least some nice bags, lease or own a nicer car than she could, etc.
well as someone that is in CC debt b/c of medical expenses and prescriptions
(and loss of income do to medical issues)
I have to disagree
in the past 2 weeks- my husband needed $1200 of uncovered prescriptions to function
I am just glad I have the credit to manage it until we get our settlement $$$
Gonna quote myself on that: "In other words, my experience has been that there are few (but some) people who truly live within their means and couldn't cut back more if they had to...." There are clearly some people oout there that cannt cut back on what they're buying because they're spending $$$ on essentials, not luxuries. Medical expenses that drain people's accounts are clearly differnet than entitlement that does the same thing.
So to your point, what about these people? Don't they deserve a helping hand?
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| Posted 10/16/08 6:45 PM |
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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: I Have a Question About this Financial Mess...
But the customers can stop using the cc as soon as the rate goes up--even if it went up without reason. They can use other cc's, especially if they pay on time--they can find other cc's with rewsards attached to them & have their pick. Or they can cut back because they're not in a position to be using $$ that they don't have. Those who really can't cut back and have surprise medical expenses should (and do) have social services available to them...but that's not what's being discussed.
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| Posted 10/16/08 6:46 PM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: I Have a Question About this Financial Mess...
Posted by seaside
But the customers can stop using the cc as soon as the rate goes up--even if it went up without reason. They can use other cc's, especially if they pay on time--they can find other cc's with rewsards attached to them & have their pick. Or they can cut back because they're not in a position to be using $$ that they don't have. Those who really can't cut back and have surprise medical expenses should (and do) have social services available to them...but that's not what's being discussed.
I agree that people should not live beyond their means but what about the person who falls behind and is not spending, is not adding to their current debt but just trying to pay off what they have.
Why not offer a solution that helps them? Not to mention it helps everyone b/c all cards rates would be cut for everyone, not just those who are in debt.
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| Posted 10/16/08 6:50 PM |
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