Credit-card delinquencies hit record - Good read I thought.

[ABV]

Originally Posted by CDeutsch

I don't mean to overshadow the screw job on gas prices, but that bankruptcy law couldn't come at a worse time with the huricanes, war, gas prices etc. It'd be nice if the govenment could start helping people help themselves instead of waiting for them to have nothing and then trying to support them. But they're too busy helping the rich get richer.

The government is forcing the hand of CC companies to raise the minimum amount due each month. Most companies are raising it from 2% to 4%. It might sound bad, but it will help people get rid of thier CC debt faster, and maybe, hopefully, make them think twice about racking up all that debt. They have also talked about putting a warning/notice on everyones statement. Think of it as kind of a surgeon generals warning on a pack of cigarettes. It just tells the consumer that if they only make the minimum payments, that it will take them xx months, and they will pay $xxx.xx in interest.

If you really want to stick it to the CC companies, pay off all your CC debt, and use a rewards card, to get freebies from the company. Just make sure you pay it off every month. I currently have about $4,000 on a CC at 0% interest until June. I could pay it off pretty quick if I wanted to, but I'd rather borrow the money for free, and use my savings to make money instead.


One last thing. Bankruptcy is not a "Tip" for getting out of debt. It's just a way to pass your own debt onto other consumers who actually pay thier bills.

[CDeutsch]

Originally Posted by RoboBot

One last thing. Bankruptcy is not a "Tip" for getting out of debt. It's just a way to pass your own debt onto other consumers who actually pay thier bills.

I agree with everything but you're last statement.

Bankruptcy is a very viable option for those that are in way over their head (no it's not for everyone, "way over" is the key word here). I used to think the same way you do, until you meet someone whose in that situation. For them, there at the point where it's bankruptcy and have a fresh start and can actually work and have money to live, or start trying to qualify for government assistant where you get money for doing nothing. Now which would you recommend? Have the tax payers pay for god knows how many years, or have the "poor, incocent credit card compnies" right it off. Sure it was their own fault for ending up in that situation, but regardless they're there and those are the options.