The credit card companies since the winning their "bankruptcy legislation" last year has done everything possible to nickel and dime consumers. During the Bush Depression, lots of people lived off credit cards due to being out of work for a year or more and now the banks are nailing everyone for round two.

Debt is at an all time high and the prez's brillant scheme is to jack up minimum fees. This stragedy comes from a man who has never worked a day in his life and has no clue when it is like to live paycheck to paycheck, wondering if your going to lose your job and end up on the street.

I know the neocons love money and hate the poor but if would like some new rich people to follow the American Fantasy, then they need to get these banks under control.

Credit Card Companies definately need a ceiling in all states. Wouldn't hurt my feelings at all. :)

Uh, Bob. In Washington state, you can't buy your books at Amazon.com without paying sales tax. Imagine my surprise after not paying sales tax while living in Guam and california at finding that a sales tax is charged to Washington residents. Must be that "nexus" thing. And hooray to all who try to rein in credit card companies.

It's funny about those who support this up the ante attitude. The only thing is that We in the banking industry control all of the money flow. Increase our costs ? We'll just pass the cost along, and don't forget that we have legislation passed on our behalf to protect us against deadbeats. On a more constructive note, people should ask themselves where they would be without the ability and opportunity to borrow from us. My guess is that most would be naked rather than clothed, homeless rather than have a roof over their heads, and without wheels or the ability to take vacations. The citizenry NEEDS US. These are the facts - pure and simple. The negative savings rate supports my position. I really doubt that consumers should or want to start a pissing match with those among us in the banking and finacial industries.

It's a new century. Time for a change. Credit card companies are well established now, and they can afford to follow fair rules. Contact your government representative and let's get these out of control credit card companies under control.

I don't use credit cards. I am not naked. I have a home. Our household income is under 40M.

Well...I have yet to see many address the core issue at hand: those with the least, get charged the most. Does this mean that those who treat credit well, pay their bills on time, and are able to meet their financial obligations should be penalized by paying more? No, but how is possible to logically think that a person making less could ever pay more?

You see it with variable mortgage rates. Many who use them can't afford the higher rates, and when they get their rate bumped up 2 or 3 times, are forced to sell. Now when that sale happens, Mortgage Company XX, who decided to auto-bump the rates, priced the borrower out of the home and forced them to sell to somebody who is not using Mortgage Company XX as their lender. So what happened here? Mortgage Company XX was collecting, let's say $750 of interest per month on that mortgage. When they bumped up the rate, forcing the sale, Mortgage Company XX now is getting $0 per month. Does that make good business sense? Sadly, credit card companies know you can't sell their cards, so they have you where it hurts and have to be the greediest companies in all of history.

As cocky as the banker sound, or tries to sound, the real truth is they have run amok and it's time to pay the piper. I have cut up every card that charges me more than 12% and if he, or his ilk think they can scare me into using their services they can think again.

Nelson, WAKE UP AND LOOK AROUND! What would your financial institutions do if it did not have us to support your incredible salaries? Remember, WE are the customer, not you!

Let's compare, shall we? Loan sharks: Lend money, and are up front about the interest rates. Credit card companies: Lend money, promising low interest rates, only to increase them sometimes above 30%, based on "findings in credit reports" even if there has never been a late payment to anyone, ever. I'm taking my business to my friendly neighborhood loan sharks. At least they're honest.

We all know BUSH has initiated the new bankruptcy bill to protect his Banker buddies from incurring too many losses from bankruptcies. Now the Credit Card companies jack up rates to 30% for one little mishap, regardless the reason. And now they have a new formula to raise the minumunm payments. God Bless America !

We all know BUSH has initiated the new bankruptcy bill to protect his Banker buddies from incurring too many losses from bankruptcies. Now the Credit Card companies jack up rates to 30% for one little mishap, regardless the reason. And now they have a new formula to raise the minumunm payments. God Bless America !

OVER THE YEARS I NEVER MISSED A PAYMENT, NOR DID I OVERDRAW MY ACCOUNT.
THIS YEAR THE INTEREST RATE ON MY ACCOUNT MOVED FROM 7% TO 20%
APPARENTLY THE BANKS HAVE A LICENSE TO RIP OFF THE PUBLIC.

Nelson Rothschild sounds like someone born with a silver foot in his mouth. You reap what you sow. The credit machine knows that most people are ignorant when it come to finance, and they milk it. The negative savings rate is the result of having credit too freely available and billion dollar marketing machine from credit to shoes. We do need the banks but to buy homes and cars. When I see a Capitol One commericial I laugh at their propaganda. The fat guy says "I should have worked for Capitol One." That is funny because their call center is in India. I work in credit and I see people naked,homeless with no vacations with a huge credit card bill. Just like the banks want them. I hope the new bankruptcy law works. That way they will take their most profitable customers out of the system paying their old debt for 5 years. This will have a cooling effect on the economy and their most profitable market.

Nelson...you are dead wrong. The banks need US! Without us, there would be no money to loan out to companies and individuals. Problem is that after the industry was de-regulated, because consumers would benefit without the regulations, banks have nickeled and dimed us to death. When Bush bowed to the Credit Card companies to make it harder for individuals to file for bankruptcy, he essentially turned the credit card companies into the new tobacco industry of the 21st century. Imagine the tobacco companies sending samples to kids all over the United States, people would go ballistic! But the credit card companies are sending Pre-Approved applications to every breathing person on this planet. What is the difference between the credit card companies getting people "hooked" on credit and the tobacco companies "hooking" people with cigarettes.

OVER THE YEARS I NEVER MISSED A PAYMENT, NOR DID I OVERDRAW MY ACCOUNT.
THIS YEAR THE INTEREST RATE ON MY ACCOUNT MOVED FROM 7% TO 20%
APPARENTLY THE BANKS HAVE A LICENSE TO RIP OFF THE PUBLIC.

Congratulations to Representative Chase for having the guts to stand up for consumers. I wish her much good luck. Universal default is one of the most unfair practices I've ever seen. One credit card bill accidentally thrown out with the Christmas junk mail catalogs and you're stuck for months trying to get back in the good graces of the credit card companies.
Let's hope other states take notice.

this message is for the ny person rothschild....
in a pissing match the banks will ultimately lose. It is the other way around. The banks need the people. In the past people survive, banks come and go with the wind.

Nelson of NY,
A grass-roots movement by the citizenry to stop, for just one day, the use of credit cards across this country would bring you and your greedy banking industry to its knees. What do you say, folks? Let's get our power back and show Nelson and his band of reverse Robin Hoods who really needs who.

Well, the bankruptcy law changes mandated higher credit card minimum balance payments in order to ensure that the "minimum amount" had to at least touch the principal. I had one card where the minimum amount was less than the interest being charged. The new law is supposed to help that. Credit card companies were supposed to phase in the increase, but held off to the last minute to maximize their revenue. There was no "ramp up", so a lot of consumers got shocked when their minimum payments suddenly went up. As I understand it, the credit card industry is now blaming most bankruptcies on the increased minimums, citing it as an example of government interferance. According to a letter I got from HSBC, the credit card companies are fighting "on my behalf" to get the minimum payments reduced to "help me out." I'm not really sure how much of this help I can afford.

this message is for the ny person rothschild....
in a pissing match the banks will ultimately lose. It is the other way around. The banks need the people. In the past people survive, banks come and go with the wind.

Nelson, your attitude reminds me of the joke about what to call 30,000 bankers at the bottom of the ocean. I don't need you or your industry. I just use you when it's convenient.

Nelson Rothschild -

You're wrong. If we didn't have credit cards that price gouged (along with oil companies that do the same thing...Think Exxon Mobile's record profits this week) via interest rates and other charges, We as Americans would actually HAVE better money management skills. Why? Because we would have to to survive by USING our money management skills. It's simple - The money isn't in our pocket, we can't spend it. Likewise, we can't be charged the 30% interest rates.

This means no more buying that $2000 plasma TV on the credit card (do we need one anyway?) and instead saving until we had the $2000 to pay in our bank account. Likewise, we may *rethink* that purchase instead of doing the impulse buy because we're watching the Superbowl with friends this weekend.

In the end, we as the american population would learn to survive with less, instead of with more. Americans consume more than anywhere else in the WORLD. Those that are the "poor" among us are still rich compared to those in most third world countries. This is a fact, and it's quite simply, facilitated by the credit card companies whom not only gouge on the interest rates but also send out "pre-approved" applications until my waste basket is full.

I've only had a single credit card (with balance paid off if there is ever one) and been living with my personal paychecks and saving for years. The American idea of "Impulse buy" aka "put it on the credit card and it'll get paid off eventually" HAS TO CHANGE. So do the banks and credit card companies that facilitate this kind of use and subsequent indebitedness.

If you won't do it on your own, it's time for the government and the population to DO IT FOR YOU. I won't say outlaw credit cards - I think that's extreme - though I do advocate the ideas mentioned above for the good of the Poor - and the NOT so poor.

Now that bankruptcies are basically not allowed before getting robbed by the credit consolidation companies as well, the credit card companies' risks have declined significantly, and I think this direction of legislation is right on the mark for the greedy credit card companies. This kind of legislation I think is needed now that credit card companies have lobbied away the risk of bankruptcies from consumers that may have rightfully needed that way out and balance needs to be restored to their bottom line. I doubt this cost will be passed onto consumers, because of the positive effects of bankruptcy legislation to their bottom line.

I hope the credit card companies do get taxed heavily. It's not as if it would hurt their bottom line that badly, they're showing record profits. At the expense of a lot of people, particularly the folks on a fixed budget.

And to the person talking about a pissing contest with the banking and financial industries, I'd love to start one. I make $18,000 a year before taxes and support myself and my husband, and 2 cats. I have no children, which is a good choice for my situation. I use my credit card sparingly - once per year for my annual vacation, and for occasional internet purchases. My credit card is not the force keeping a roof over my head or groceries in my kitchen. I have no mortgage because I prefer to rent - that way someone else does all the maintenance work. I tried home ownership, and I didn't care for it. If more people managed money the way I was taught, the financial industry would not hold all the cards, and our savings rate wouldn't be so dismally low.

I have thought for many years those behind the credit card industry are in the same league as loan sharks. I thought loan sharking was a crime? As for Mr. Nelson Rothschild, yes, we need the banking industry, especially since the savings and loan debacle. Banks are pretty much the only game in town. Many people out of work, or on the low-income rung have to live on credit. Doubling minimum payments helps only the banking industry. People making minimum payments do so because it is all they can handle. I thought banks were not only in the business of making money, but helping their clients. By-the-way, Mr. Rothschild, you are using the average joe's money to stay in your business. Ever hear of a run on a bank?

My theory on credit cards is simple. If you can't afford to pay "cash" for an item do not charge it. You can still get those "dream" toys. You just have to save for them. It may take 3-4 months to save for that toy, but at least there isn't going be interest on top of the purchase price.

Credit card companies don't like it when you pay off your balance every month. For example Discover Card gives a cash back bonus every month. I pay my balance off every month. In effect Discover card pays me interest every month. They hate me.

Wow, Nelson, that's a very nice stand. While I agree in free enterprise, I also believe that usury is a bad thing. You talk about the negative savings rate; well maybe if people didn't owe 30% on what they barrow then they could afford to save a bit more. Now I'll be the first to agree that we as Americans would probably not save that extra money, but that shouldn't be cause for you to steal it. In the least it would leave more money free to cycle through the economy and spur us out of our depression. Debt is a huge problem in this country, but legislating against debtors is not the answer. Lines of credit are a privilege, not a right, quit lending to high risk individuals and bring interest rates to a reasonable state. Education and responsibility are the only way to win this war on debt and the indentured servitude now imposed by the banking industry.

Eliminating ALL Usury is essential to a fair and balance society.

The "pass the cost on" argument is a just a simple scare tactic. Credit card companies are not like insurance co-opts or Credit Unions where "excess" profits are returned as dividends. When was your rate ever decreased because your card companies stock went up?
The real issue is card companies kicking consumers when they are down. They know that a defaulting customer may be trapped into accepting and paying a usury rate. What choice do they have? They may not be able to pay off or transfer the balance.

Credit card companies used bait and switch for years in the 80's and 90's allowing consumers to rack up huge debt for low interest and low monthly payments. Now they switch and double the interest and monthly payments after so many folks are in so deep. This comes at a time when gasoline, oil, electricity and natural gas prices have increased by 25-30%. No wonder folks now have negative savings. The card companies should not have given so much credit so freely in the past.

That's quite an arrogant statement from an individual in a service industry that depends on consumers for their very existence. Still the problem is not just banks or credit card companies. True many individuals do depend on credit cards to maintain their lifestyle, but they don't HAVE to do so. Emergencies and hard times do happen that people are not or sometimes cannot be prepared to handle. But with some basic economics, budgeting and/or financial counseling and a little self-discipline and time the vast majority of people could maintain a very similar lifestyle to their current debt-laden one, without paying hundreds or even thousands of dollars in interest. A simple internet search for "personal budget plan" will yield a wealth of information on how to manage your finances and get out of debt and live without paying those exorbitant credit card fees.

The problem with credit card companies is they couldn't care less what is fair and what is right. The more they think the comsumers will pay, the more they will charge. Problem is they have us over a barrel at this point and they KNOW it. I just hope that one day the American people wake up, simply pay off their credit cards and cut them up for good because credit card companies are getting WAY too out-of-hand.

Sometimes I wonder what the US Goverment will do once it cannot pay its own debt. Will the goverment be charged these outrageous fees on a ballooning 8.4 trillion dollar debt? Like father...like son...

Nelson, in NY...my thoughts exactly....people know the rules before accepting the terms...don't want to pay the piper? Don't dance!

AmEx - charge it, and pay it off each month.
what could be better?
until the "bad credit" population starts to whine...

Leave it to a banker to point out the need for them. Hate to break it to ya Mr. Banker, I dont have a loan from your industry never have and never will. Hmm, it seems that I am clothed, housed and feed very well without MONEY FROM HIM. How about that!! Citizens do not need banks, problem is that banks make us think we need them. As for wheels, got me a set, no loan there and as for vacation, toke one of those as well and no loan there. I hate to break your bad theory Mr. Banker, I have every thing I need, without a bank's help. Do I have a checking account, yes I do, its easier to have to pay bills, and yes I have a debit card so I don't carry cash, do i NEED THEM??? Not really I don't

Scott, President Bush has nothing to do with you being out of work. Get a job and stop whining about how mean the President is.

The first response says that Bush pushed up the minimum payments on credit cards. Actually if you do any research, you will find that consumer advocate groups pushed for higher minimum payments so that balances would be paid down faster.
As someone who did collections for a major card company, I agree that the companies do "squeeze" people. However, I can honestly say at least half of these people put themselves into the situations by living way beyond their means. And even though they are being hit with high fees and interest they continue to spend. Whose fault it that?

Ah Nelson, this will be the attitude that will distroy this country far quicker than Bin laden or any other terrorist. There is a need in this country for advanced citizenship that you and people like you simply lack. You want yours and to hell with everyone else. This country was founded on an idea of fairness and equality. When the interests of the rich trumps the good of the country there is a backlash. It may not come soon, I suspect we may really have to wait another 3 yrs but it will come. This business friendly administration has been so naked in it's bias there will be a price to pay. When this president recycles his social security "reform" as healthcare "reform" in such a high profile forum as the SOTU people will begin to realize that they are standing on the edge of a cliff. Abuse often results in change.

Here's a news flash: Credit cards are a choice. You can pay cash if you don't like it. Also, if you don't like the deal from your credit card, go to another company with a better deal...oh wait, that's right; you can't because you are juggling a high balance from buying stuff you could not afford. So, you made a choice and now you don't like it. Too bad! No one FORCED you to purchase things you could not afford. Get over it. I have no idea what interest rate my credit card companies are charging because I don't carry a balance! What a novel concept. I'm sure that there are many heart-wrenching stories otherwise, but let's face facts: the overwhelming majority of those carrying large balances on credit cards did it with fancy clothes, large TVs and super vacations. If you don't have the money, don't buy it. Until then, stop your whining!

I found a way to help the Postal Service and hurt the credit card company. I get 7 to 10 applications per month. I remove every bit of personal info, stuff the prepaid envelope with what is left and mail it back.

Nelson R. = successful troll!

One of the greatest things about the credit-card companies/pushers is the way that their credit agreements all contain one-sided escape clauses which say, in essence, that they can change any term of our contract with you at any time, for any reason, without your agreement, with effect from their informing you of the change. How many other businesses get to do that? One of these years--although surely not with this rich-kid president and this congress--the pressure for reform will build up to the point where federal legislation will eliminate at least some of the rank abuses of the industry. Then perhaps the industry will stop passing out credit cards like candy to the poor, the young, the ignorant....

Nelson Rothchild comments that the average John Doe couldn't get along without the credit card banks. Nonsense. As any drug peddler (the drug is easy and instant credit) they would love to see the populous stay hooked. If there were no credit cards (I remember when there were none except AMEX and Diners) people would alter their behavior and probably manage their money more responsibly. They would certainly kick the high of instant gratification. This nation lived without credit cards before and we would do so again if they didn't exist. Mr. Rothschild proffers that their doing us a favor......for some maybe....for most NONSENSE.

Now for a little satire --Everyone re-read the third paragraph from the bottom in this article and then do the following: Find a credit card company without nexus in your state, ring up a bunch of charges, and then don't pay them. They just might not come after you. If they do, threaten to sue them and bring up the state;s sales tax issues. They will probably go away. (on second thought, maybe that's why MBNA overlooked my paltry $8,000 balance.)

I recently read the term "30 and broke". Sad, but true this speaks loud. I was in college in the late 80's and received a pre-approved credit card from every card issuer I can think of. From major cards, to gas companies etc. I was at an expensive university - which must have led them to believe that I had money?!? Imagine a 19 year old college student receiving a pre-approved $5000 mastercard - think of all the beer, I mean new clothes, I mean pizza for everyone that could buy. These credit card companies have been vultures ever since I have been old enough to have credit. I can recall when I was young my parents only had one credit card and we had a very nice house and only my father had to work. It was called budgeting and living within the means we had. I applaud any legislation to curtail the credit card industry; however I would also recommend some legislation to slow down the advertising that entices us to want the items and therefore we must use our credit card. With the supply in the market so desirable, it makes it hard for anyone without inpulse control to resist. The never-ending amount of hope everyone has that they will get a large raise, or win the lottery or something, fuels most persons to have the item now and someday be able to pay for it. Imagine having used my $5000 limit cc for fun in college, I could still be paying for that today, if I had only paid the minimum payment due. The higher minimum payment is not true good news for the cc industry, you may pay down the balance faster and in the end pay less interest. The only way to beat the cc companies is to stop using credit. It can be painful at first, but imagine the freedom from having to worry if the payment will be received on time.

Something feels inherently wrong to me when ANY company can increase your interest rate until the skys the limit -- and often at an alarming rate -- NOT for going over your limit, being late or for a returned payment -- but for a one-time offense with another creditor. The argument that they should be allowed to do this, as you have now become a risk to them is ludicrous, as a true risk has yet to be established. Isn't it funny how once you're back on track, they don't bother to "decrease" your rate.

Capital One is the company I personally dislike the most because of their two-faced approach in dealing with one of their best customers. Imagine receiving a letter that states since you've been such a great customer, they're going to allow you to transfer balances from other creditors to their card, but if you DO so, they'll be increasing your fixed 9% rate to a variable APR of 15% and we all know what happens then ... the APR continues to gradually creep up ever higher. What garbage!

I truly believe they feel they can pull the wool over the eyes of most consumers and sadly, that does seem to be true, as the average consumer has not been educated as to how best to handle this "easy" credit and they end up paying the price. (:

What's happened to the so-called "Christians" in this country? The fight agains Usury is a moral fight. Don't you remember Jesus and the Money-Changers? If you call yourself a Christian, you should be denouncing the credit-card company practices. Where's Pat Robertson when we really need him?

It feels good not to have credit cards. I have a debit card and a bank account, but if the fees on those go up, I won't need them either. I used credit cards to help a family member, but had to file for bankruptcy because I was only enabling that person and running up my debt. Late on one payment and the credit card companies raised the rates and made it impossible for me to repay. Instead of "working with me" as their phone reps promised, they forced me to file by being as arrogant and unyielding as Nelson. I'd say they shot themselves in the foot... I got the use of their money and they got squat.

Credit card companies can only control us because we let our greed control us. Cut yourself free. Live with less. Don't buy the lie that happiness is more "stuff". Save. Use cash. And smile.

BANKS MAKE IT EASY TO GET CREDIT CARDS. INCLUDING COLLEGE KIDS WHO DONT WORK AND DOGS. MAYBE MR BANKER SHOULD LOOK AT CREDIT CARD APPLICANTS A LITTLE CLOSER, SAY LIKE A MORTGAGE LOAN. I KNOW CONSUMERS THAT ARE GOOD STUARDS OF CREDIT CARDS ARE PAYING FOR THE EVERYDAY BANKRUPTCY. BANKS LET CONSUMERS OVERSPEND. THEN WE PAY.

I don't understand people who are screaming about how "unfair" these rates are. Credit cards are something you don't need! I don't have a credit card. I use a debit card to reserve plane tickets or order online. I actually buy only what I can afford!! And no, I don't make a lot of money. I work for a credit card company, and I am so sick of people getting upset about a late fee or a finance charge when, if they can't pay the bill, they shouldn't have the card in the first place.

What the banks have forgotten is that while you may not be able to declare bankruptcy anymore, you can simply stop paying. There is no "debtor's prison" any more. If your credit is ruined, what does it matter if you simply don't pay any more?

That happened to me. I lost my job in the early 90s, with 20K in credit card debt and NO income. I just didn't (couldn't) pay. Likewise my mortgage. The house sat empty for 3 years because there was no one to buy it, but I no longer am in debt. Time has passed. I walked away from 160 THOUSAND DOLLARS of debt and now have new credit cards (which I keep paid off) and a good credit rating.

Mr Rothschild is a self serving idiot, who is going to see my circumstance (past tense) times TEN MILLION in the next few years. Those he tries to charge 30% interest will simply tell him to stick it ... well... you get the picture.

And I will laugh as he joins the unemployement line and walks on his huge credit bill. Banks can die too, and when they do, Mr. R will not be laughing. But I will.

Hey Dr Tigger. You have no need for banks? You have paid cash for all of your homes? education? Sounds to me like you are a trust fund baby or a liar. And if you are really a doctor, in my opinion that leaves you with no room to complain about overcharging.

Don't be so hard on Nelson. After all, that's the same attitude used by mobsters. "You need my money, so I'll charge you whatever interest rate I feel like charging."

Let them eat cake, right, Nelson? But look what happened to Marie.

It seems that the credit card companies get a bad rap for providing a service that WE DEMAND. If we weren't irresponsible and living beyond our means, they wouldn't be making money off of us. Just because my credit card company gives me a $25,000 limit doesn't mean it's a challenge to see if I can reach it! I decide how much I spend, and when I told my credit company I got a better offer and was considering switching to another credit cad company, they did one better and matched it. It seems that a lot of people who are irresponsible with their money choose to blame the credit card companies rather than their desire to buy on credit. Maybe we should legislate responsible spending instead and solve the real problem.

Wow, Nelson, I am shocked. I agree that banks need protection from deadbeats. But as a person with really good credit, I am obviously not a deadbeat. It's bad enough that I have to pay a $39 late fee when I forget to pay a credit card bill (yes, I'm disorganized, and it sucks to suddenly look at your calendar and realize your bill was due yesterday), but to have a higher interest rate on top of that, which is in effect a perpetual late fee, for a payment that is 1 or 2 days late is not fair. My credit score is 680 - 700 and I have never had a negative payment history on my credit report. I am disorganized and forgetful, but not a deadbeat. And I would be MUCH better off, and definitely not naked, if credit cards would stop sending applications to my husband, who loves to use credit cards, and increasing our credit limits to unrealistic heights.

Wow! I always said the RICO act should apply to these institutions that have had a free hand in charging outrages interest rates. They are by all means Loan Sharks and use Deceptive mail offers to lure you into there net, Once hooked they will fillet you and then use the courts to strong arm you and slam you to the ground and snicker at your poverty stricken life style. Created by there Promotional Departments that are out there to get you hooked on credit just as a drug addict gets hooked by pleasure and moments of euphoria until there are no more drugs to be had without paying triple the amount paid, when they were marketing and reeling there marks in for the big payoff. Sure seem like these promotional pitches and collection practices falls somewhere within these boundaries of illegal activities.

I love taking advantage of those zero interest deals. I have a washer, dryer, rings, digital camera, plasma TV, all purchased on credit and I have paid zero interest. I just mail in a payment for my balance on the last month of the 0% period and then the banks eat it. I guess they took a gamble that I was spending beyond my means and sometimes when you gamble, you lose Thanks for the free financing, it's much appreciated :-)

BankOne raised my rate last year from 7.99% to 29.99%. When I called to ask why, they told me, "Based on charges I've made to OTHER credit cards, they were AFRAID I'd stop paying them." I have ZERO late payments on my credit report. My credit score is 764. Yet, they somehow figured out a reason to increase my interest rate to 29.99%. So, I thumbed my nose up at the credit card industry. I paid off all my balances and promised myself that I'd never carry a balance again ... and, I never have. If I know I can't pay the card off when the bill comes in, I just don't buy it, simple as that. And, on the memo line of every check I write to pay my credit card, I write "HAHAHA! KMA!" If you use a little imagination, you can figure out what KMA stands for. ;-)

All these hate messages about the credit card companies makes me sick. If you don't want to pay the fees don't charge on the card. When will you people stop blaming "evil, greedy big business" for your own lack of self control and common sense.

Scott, the prez didn't have anything to do with the new Bankruptcy law - the banks and lending institutions did. They were tired of all the people who don't have jobs who can't pay their bills becuase there is no income and their job was sent to Mexico, India or better yet, China. Oh yes, let's don't forget the chronic filers. If you filed a chapter 13, guess what, you pay taxes on the interest as taxable income. The banking industry made it easy to rope everyone in with "easy credit." Consumers need to be smarter, learn that you don't have to have everything to keep with the Joneses like the big fancy house, the big fancy car, the latest in electronic gadgets, giving the kids everything under the sun. Banking institutions need to pay taxes of income they earned from all the fees they love to stick to their customers!!!!!!!!!!!

The question is why so many American's have such trouble with Credit Cards. The banks are not to blame for this, but more the American psyche of living on the revolving wheel of credit. How many American's can say that they don't have credit card debt, let alone a car payment? This is the real issue. If people lived within their means, and the banks had tighter control of issuing cards, then this problem may not exist. Who really needs a credit card with a limit of $10,000 plus?

Wow, I can't believe how many people want to pass the buck for their "spending more than they make" onto the government. Kudos to all of you who don't need to use credit cards, but shame on you to think you are the norm and not the exception. Nelson, although a bit arrogant, is correct. The average american feels entitled to have "things" even if they can't afford them, well one must pay the piper eventually. No matter how much some of you think that the banks need you as a customer so they should be nice and not make arrogant comments, the average American needs the bank more! The last time I checked, there was plenty of disclosure regarding fee changes, Stop whining and instead acutally read the paperwork that comes with the credit card. One must accept the responsibility for their actions and choices. Stop buying things that you can't afford to keep up with the Jones's and your life will be simpler.

They're the worst example of capitalism, and the reason why the Bible makes charging interest a sin. If the credit card companies could legally break your legs for not paying, they'd do it. I really hope we stop these loan sharks.

I suggest a nationwide boycott of credit cards. Everyone should quit charging, pay down their balances, and cut up their cards. That will show the banks.

I don't really see what the big deal is about playing the credit card game. With online banking, it is easy to set up payments in advance, keep track of who you have paid and who you haven't. Furthermore, you should log on to every credit card web site and keep track of your expenditures every day so that you know what sort of a bill to expect every month.

The credit card companies are, quite literally, loan sharks. But if you have the money and still miss a payment, it's certainly your fault.

Take all those mailed credit applications and stick them back in their return envelopes and stick in the mail. Doesn't cost you anything but think of all the overtime the postal workers will be getting and the credit card companies have to pay the postage. Might put a stop to their mailins.

I am my own worst problem when it comes to over spending. People need to get a hold of things and stop the blame game!! Step up and be responsible. Let the Credit Card companies keep charging these high rates. We don't have to live to the standards that we are. Step back and look at the problem and then fix it. Stop living beyond our means. That is the problem. I have canceled all of my cards and am in the process of paying them off. Make it happen! That is the answer.

Folks, both sides of this argument have merit. The banks and lending institutions say that people are not being held at gunpoint to sign the agreement or to use the cards or take out the loans. They made the agreement and they should pay the cost of default. The consumer advocate groups say that the lending industry is taking advantage of the situation by making credit too easy to get and penalizing the portion of the public least able to afford it. ---The fact it, we need the lending industry, but so does the lending industry need the public. I would argue that the public can survive without borrowing, but lenders (by their very definition) can't survive without borrowers. The bottom line is we need each other. Right now lenders are taking advantage or their situation. We the public, need to rein in this industry. We SHOULD contact our legislators and demand action. We should also begin closing those accounts when at all possible. And finally, someone suggested that even a one day boycott of using the credit cards would send a clear message. I agree 100%. It would be the same as the annual "SMOKEOUT". This would be an annual "NO CREDIT" day. For one day, the entire nation would abstain from purchasing on credit. No credit card purchases, no loan closings, no application submittals. As little activity regarding credit as possible. That would send the clearest signal of all and would be the best way to get the attention of the lending industry. Question is "Who will sponsor this effort?". Whoever sponsored this, I would participate. I hope everyone would. We have to take a stand. WE ARE AMERICANS!!! WE CAN DO ANYTHING!!! IF WE CAN PUT A MAN ON THE MOON AND GOLF CARTS ON MARS, WE CAN DO THIS!!!

Credit card companies are in the business of trolling for assets. When they hit you with fees and outrageous interest rates, they are not interested you continuing to make these payments, although if you do they make very nice profits. They are trying to force you into bankruptcy where they hold all the cards.

It's funny the arrogance of Mr. Rothschild. I suppose because of his name he feels he is above all of us in the working middle class getting squeezed by greedy people like him. He wants all of us to use the banks to increase his wealth (anyone ever heard of The Illuminati? I'm sure he's related...).

I agree that many people do not use credit wisely, and the banks capitalize on this....The answer? Teach your children about financial responsibility. When my 13 year old asked for something and told me to just 'use a credit card', I added up the interest on making monthly payments and he quickly saw how a $400 item could quickly turn into a 30 year multi- thousand dollar monkey on your back...he never asked again.
I am a teacher and a single parent of 3 who is earning under 40K a year. I own my own home, drive a nice car and have no credit cards......and my kids have computers, video game consoles and all the 'right' clothing....we just save for these items.....

Loan sharking use to be against the law, but now it doesn't matter, as long as it is the bank that is doing it.

I used to work for a credit card company (namely Capital One). I always said that I would never own another credit card in my life and that's definitely true now that I know what I know from behind the scenes. As for all of the pre-approved applications that you receive in the mail, if you open them up there is a phone number that you can call to have your name and address removed from their mailing list. It works. Just try it.

2 words for everyone here: CREDIT UNION. The 2 words banks fear the most. They bluster and brag about them, but almost anyone can join. They don't nickel and dime you or rip you off. I've had little to nothing to do with banks for over 20 years and my finances are fine.

I'm having a problem here. While I do agree that 30% is just ridiculous, we do know what we are signing up for when we get the cards. How many people read everything? It says - one late payment and your rate could go up to XX (I've never seen 30 % but 22). I was charged a 30 late fee on a 25 payment for Best Buy. I called and told them fine (They posted my check one day late), I cancel my account. They sure back petaled and took that charge off. Credit card companies do need us and you can argue for better rates or switch cards.
The problem I have is - we are responibily for how we use our credit. We are the ones buying bigger TVs or living above our means (Yes, I agree some people need it for basics but that is rare). It's easier to pay with credit than to carry cash. it's easier to say "I'll pay later". We need to change.

I think we're the credit card companies should be held accountable is their mailing practices. How many of us get tons of mail for new cards? I got 3 from a bank that I'm already a part of (and no they will not give you the lower rate on the offer if you already belong).

*Disclosure - I do have 20K in credit card debt.

Where are our congressmen and senators. Why are they allowing their constitutents pocket to be picked like this. No one is controlling the banks, and they are having a field day. However, this type of behavior will one day backfire, when the banks wake and find poor people would just rather pay with cash.

ALL of the laws which allow credit card companies to operate as legal loan sharks were passed under Democrat presidents, and/or by Democrat-controlled Congresses, for the benefit of their country club contributor buddies. Could one of the Bush bashers please explain to me how any of that is "W's" fault? Delusional, much?

Where are our congressmen and senators. Why are they allowing their constitutents pocket to be picked like this. No one is controlling the banks, and they are having a field day. However, this type of behavior will one day backfire, when the banks wake and find poor people would just rather pay with cash.

I'd venture to say that Nelson Rothschild is someone using a fake name to play devil's advocate.

Regardless, his points are at least partially true. There is a shocking absence of personal responsibility in this country. While banks and credit card issuers (many card issuers are not actually banks, so don't lump them all into the same category) have not helped the situation by making it easier for people with poor financial situations/financial management skills to get credit, I will always fault the end user for either being ignorant of the credit terms or for abusing (yes, abusing) the credit granted to live beyond his/her means.

If you don't want to pay huge interest rates, don't charge more than you can pay off - in full - every month. The bigger question is why is it so hard for people in this country to stop whining about being fat/broke/stressed/etc instead of taking ownership of what they eat/spend/do with their lives?

If you really want to "stick to credit card" companies, get a copy of Dave Ramsey's Total Money Make Over, follow the plan and walk away from debt and stupid tax forever.

People, protect yourself from the financial wolves. Do not expect laws to do it for you. Use common sense.

People have to relearn that they own their money not the banks or lending insitutions. Easy credit, be it credit cards or otherwise will eventually bring your financial house down. People must stop playing the monthly cash flow game and look at what the total cost is in real dollars. Am I against credit? No! It can be used very effectively to ones advantage. Many people have used home loans to very effectively build wealth in the long term.

People listen to the wrong people. They listen to the people who want to get their hands on your money. "Buy my car, payments are easy, take out a home equity loan and only pay X dollars a month and it will be tax deductable" I say bull!! You will be paying for that loan for a much longer time than the service life of the car and what happens in 5 years or less when you "need" a new one. Now you are paying for two at once. You have also put your house at risk and reduced your future financial options. An Example: If you get laid off, which can happen in today's world, you have to keep paying for the primary home loan and the home equity loan (the cars) or you could loose your house. If you can't pay both, now your into a forced sale or a reposession which means that you will loose more of your equity than need be. But what would happen if you had not taken out a home equity for the car(s)? Simple, you pay the primary home loan first to protect that asset and let the car payments go unpaid. So what if you loose the car(s) they are just a depreciating bucket of rust that most of us put up with. You can always get another when things get better. If it turns out to be a long term lay off, shedding the smaller stuff first (car loans) potentially gives you more time to sell or make arrangements for your major asset, the house. Key point, you have protected your major asset the house. People (lending insistutions)would love to get there hands into your equity (money). Just think next time you buy a car, "Now do I get a home equity loan so I can tax write off the interest on the car loan, yea but by doing that for the $20K loan I expose my major asset (house with possibly 50 to 200K equity) to possible default or repossession if things turn south. The banks would love to get their hands on all that equity for basically no risk on their part (you will not see that equity as they will eat it up through fees and such and return little of it).

Do not get me to talk on the slippery credit card slope. That is even worse.

Laws are nice, but people are creative and will find a way around them. Why do you think so many of them have processing centers in South Dakota. People must learn to protect themselves. Use credit for your advantage. Watch out for cheap introductory offers (they are talking lower monthly cash flow verses total cost again). Always consider actual total cost because that is what you pay. Keep your money, use it wisely and watch out for those phoney lures that so many people get sucked into.

Never use credit for discresionary spending (vacations and other "nice to haves". And yes, there is a group of people who should never be trused with credit. The group crosses all economic and social backgrounds.

Reading "Nelson Rothschild's" note makes me so sad (for him). Of course the banking industry can and will pass all costs on to consumers! The power structure of the world as we know it (disastrously greedy) would not be what it is if things were different. This reminds me of a line out of a movie: "I'd tell you to go to hell, but I think you're already there."

As many others have stated above, the greatest revenge is to reduce demand. I am in the process of using every means possible to completely pay off my credit cards and keep them paid off. It is the best way I can think of to gain the strongest sense of freedom. Will I have to pass on a generation or two of new technology or bragging rights? Absolutely. Will anyone (or I) care in three years? No. But in three years time, paying as I go, the banker and the government will no longer be setting my rules. At that point, I too will be setting the terms for Mr. Rothschild, not the other way around. Imagine if only 20 million consumers were doing exactly the same thing I'm doing? You say you want a revolution? There it is.

I overpay on my credit card bills every month. But do they take that into account? Nope. So if I'm a day late on paying (which really means they were a day late processing my payment) then my interest goes up automatically. What's fair about that? I have one card that's cut up and won't be used ever again, and I have one card that will be cut up because I went' from 8% to 25% after having it 4 years and being late once. They are crooks that use the law to steal from consumers.

Pay your bills ontime and don't carry huge balances and stop blaming your problems on someone else.

If you don't pay your bills you deserve to have your interet quadrupled.

Period.

it allways cracks me up too see 'debates' like this. im a 34 year old man with a pretty good job (about $35,000 a year with over time) income now. but about 3 years ago i got laied off for 3 months and ended up choosing between rent and my card(s) minimum for one month. i got called back to work the very next week and was once again in fair economic footing and able to meet my payments (and a bit extra to 'catch up') but low and behold my 12% was now 24% plus on all 3 of my cards (chase, MBNA, and a shell card). i had a total debt of about $8,000 on all 3 funy thing was my minimum payment didnt rise a cent even though my interest doubled over night.

anyhow i really got too thinking about this. before id never once thought about my credit card debt. i mean REALLY thought about it. now i was. anyhow my final decision was to pay off my cards and cut them up. it ment a few less pricy meals out. puting off my new truck purchase for another year, and a couple less nights out with the boys. but i paid off the debt in under 8 months. and im proud to admit ive been debt free for 2 years now. well not really i still have my truck payment. but that truly is a horse of a different color. i need my truck i didnt NEED all the $8,000 worth of crap i charged up on my card.

my point is that yes it is a shame that companys are able to extort people like Credit card companys do. but at the end of the day. the people themselves walk into the trap.

bait and switch? hardly, its all there in the fine print. its just that 'people' are to lazy and ignorant (ment not too insult, but using it in the litteral fassion) too understand what they are agreeing too in order to get the easy money to start flowing.

i say that yes credit card companys are 'evil'. but the TRUE problem is with the people that even use them. YOU the 'customer' CREATE 'evil' like credit card companys with millions of individual decisions every day when you 'charge it'

truly think about what ive said. its all good when you swipe your card to get that cool new toy/item/meal/movie and no one is cursing the 'evil' credit card companys then. that is resurved for the sunday morning kitchen table when it comes time to write the check and repay that debt.

sure 30% is way to much interest, but then again spending money you dont have for things you dont need, and when the bill comes due , crying to everyone and their sister that those 'evil' old companys are being mean to you by calling in your <-- YOUR debt.

its too much. we the CUSTOMERS created this situation, and now think that our government should be expected to get us out of it? crazy talk.

you dont want to pay 30% interest? then DONT GET A CREDIT CARD. get a second job, cut down on crap purchases. live like your parents/grand parents had too. pay your way as you go.

Congressmen and senators just like the idoit president we have now do not care about the normal every day american. Just do what I do with all these unwanted credit offers tear them up including the envelope it came in. Add in some more weight put it back in their prepaid envelope (hopefully the post office charges them for the extra weight)and send them back. Bottom line is to vote for some one who is not beholding to the banking industry. And to Ann L. from Kansas City did you ever hear of Nixon, Ford, Reagan, or either of the Bush's. Please there all at fault.

The negative savings rate mentioned is a result of banks not paying interest on savings. Why would anyone put money in a bank when they can earn much, much more in other investments. Banks charge 30% and only pay out 1%. Mailing back those credit card application envelopes empty is a great idea! Wish that I had thought of it.

Don't people have consciences anymore? If you borrow money, pay it back! And especially in big business conscience is important. Is $30 really necessary as a late fee? 20%-30% acceptable norms? C'mon! Nobody cares about people anymore. Just the money. Give to Caesar what is Caesar's!

Here's an idea. You don't like the charges? You Don't like the fees? You don't like the fee increases? Then don't use the card!! That would be the strongest statement to make the the "Nelsons" of the world. I haven't used mine for six years.

Well, how about the credit card company that deliberately sends your statement to you, so that it arrives too late to get your payment back to them in time to avoid that late payment and resulting usurous rates? That happened to me with a CitiBank card, and I've been told, since then, that such behavior is deliberate.

We were paying that account at an accelerated rate, to get it paid off, and CitiBank was alarmed to note they wouldn't make much interest off of us. Hence the late statement and the resulting wrangle with them.

They said I could pay online, but when I tried that, they said that until they got "the check" (from my bank) they would continue to count the payment late.

Apparently, it takes up to seven days for mail to reach them in South Dakota, and when I didn't get a statement until it was less than five days before the payment would be late, it made the situation an impossibility. They jacked my rate all the way to 28%, costing me about $225 extra in fees.

I finally complained to the banking industry about it, and someone from there twisted CitiBank's arm and they paid back the overcharges. Neeless to say, I've not used that card again.

VISA tried the same stunt, with a card I got from my local bank. I got the bill the day before it was due. I hiked down to my bank and made the payment directly to it, and was told there that VISA does that deliberately, too.

People need to be on their toes and complain to the industry when banks pull these stunts. A word to our Senators and Congress members would not be out of order, either.

1) The number of credit card delinquents is actually quite small compared to the number of users. It's just that the delinquents complain loudest;
2) There is a nasty correlation between financial irresponsibility and a whole bunch of bad things, i. e., suicide, divorce, domestic violence, workplace violence, even auto accidents;
3) People who duck their obligations (Tragedy of the Commons) cost ALL of us who fulfill ours. Worse are those who actually take pride in sticking it to us;
4) Even paying the balance every month costs all of us who don't use the cards. Ask your neighborhood shopkeeper about discount/transaction fees;
5) Marie never said anything about cake.

As I sit and read through several comments, I am taken back by the sheer ignorants of the general public when it coms to debt and credit card transactions. It is not really the cardholder that suffers the loss. You excepted the conditions of the card the very first time you used it. You are essentially taking out a short term loan and paying intrest on the borrowed money. As far as the credit card companies go, I think a person would be very surprised at the amount of loss that is taken yearly from those that don't repay their debt. The ones that really suffer are the merchants that are charged by everyone when they except your card as payment. I strongly recommend that we all do our research into the operation of the cedit card industry before we speak.

Been loyal to Chase for 10 years, my reward for missing A payment? 29.99% & 10 phone calls a day.

Rubber cement is the answer folks!

whenever I get one of those postage paid envelops from a credit card company, I seal the envelope and glue it to a red brick with rubber cement and drop it in the corner mail box.

To HELL with the banks and credit card companies!

Forget mailing back the empty envelopes, it doesn't cost them enough. Tape the envelope to a brick to make it weigh more. The USPS told me they have to deliver it the way it is given to them.

Having considered the arguments on both sides, I must say that both are correct to varying degrees. Each person must take the necessary self-responsibility to understand what they are getting into before getting a credit card. This means reading the fine print and understanding what it all means. If you don't know, ask questions.

It is also true that the credit card companies are morally bankrupt and have more rules than you can shake a proverbial stick at. Universal rate increases because of so-called risk?? Give me a break. That just gives them a license to financially rape you anytime they feel like it.

You want to fix the credit situation in this country? Two things will need to happen first. Number one is to give people a LOT more education in regards to finance while they are still young and in school. Make them understand how important it is to control their spending and their use of credit.

Number two is to demand your congressional representatives pass federal laws to rein in the outrageous practices of the credit card companies. Propose limits to the maximum interest rates and do not allow them to use the universal default rules.

Will either of these things happen? Perhaps in the long run they will, but I wouldn't count on it. The education will happen a lot sooner than changes in the law though.

I agree crooks, sharks, greedy opportunists, unethical business people, money hungry wolves and again crooks. Mr. New York I'll bet you give to your local charity too don't you. Not!!! Don't even try to fool yourself. You give your industry a bad name. The sad thing about what you say is that I'm sure there are more disgusting people just like you. People who can't wait to take advantage of someone else when they can least afford it. Kudos to you for confirming my beleifs (and many others I'm sure)about your disgusting money grubbing industry. I'm sure you have made many of your collegues proud as well with your smooth way with the words.

Eventually we will all reach bottom and when the other countries of the world start calling in the debt that is owed to them by the USA we will have a big problem. Credit card companies know upfront that some folks should not have credit cards but it is all greed. Once you max your card what do they do, increase your limit, catch a sucker bum0p his head. I have two outstanding cards and they will be paid in the next thirty days and then they will be in the dead letter file. I think that I will start mailing back the envelopes since I am sick and tired of getting the junk in the mail.I figure, being debt free I will take my money and put into a roth and call it aday. If an emergency comes up I will borrow against which will help me keep a negative balance. When you have been with a company for years with no problem and then you are late once and they jack up your interest rate then it is time to pay off the cards and call it a day. Once Americans stop using credit cards then the bottom of the companies will come falling down (they are out of business) we will then be debt free and they the big checks that they sharks get will be gone and then America will get back on its feet.

Its all about the decline of personal responsibility. Some consumers take advantage of credit card issuers. I made $600 CASH from Bank of America Rewards, simply by charging everything during my daily purchase, and paying off the balance monthly. I'm thinking about opening another card in my wifes name so I can make $1200 next year.

Hey, Legistators! If an internet company does NOT need to collect taxes for REVENUE they generate "In State" Why do I have to collect taxes from a Flouridian here on vacation? After all... the product is "really" purchased in Flourida, and even mailed there. GET REAL! EVERY TRANSACTION should be taxed at the home state aka. where the business is "present" or HQd. Read, If you have a brick and mortar (storefront / presence) in CA, then someone who purchases in CA gets taxed for CA. an internet purchase is EXACTLY like a telephonic purchase. I "call" or TDD (cuz eyem def) to NY. The purchase is made in NY, the "store" in NY charges NY taxes, because it was "bought and paid for" in NY. *THEN* they mail it to me. S I M P L E
If I am in CA, and make the "order" in NY, but they have distribution centers in CA, who gets the Tax??
Well, I would be inclined to say NY, as the order, AND MONEY went to NY, and was transacted there. = NY Taxes. NY calls the CA office via electronic memo (morse code at DSL speeds: read Binary code = email)
CA distributes the product. The CA site has already paid taxes on the goods they "bought, and bRought into CA" and therefore are not retaxable. The CA employees pay NY taxes. oh, wait ! NO THEY DON'T They pay CA taxes. Back to the Legistature brow-beating. The CA site mail is off paying CA postage and taxes to my CA residence.

The simple explanation of a person not from the state making a purchase for out of state OWES NO TAXES TO THAT STATE is rather illegal, don't you say? Because the next time I am in NY, I can show my CA drivers license and via the internet POP (Point of Presence) rules, I OWE NO TAXES TO NY, since I am buying that Ming vase at $25,000.00 to be directly shipped to CA. Where are the legislative persons now? Definately NOT reading this, I can tell you.

How can one be legal and the other not?!?!?!?!?!!?!?!
Whether by phone, or email, or www or https, a purchase *IS* a purchase in the same manner as if I walked into the store in NY. *ALL* transactions are taxable in the state the transaction taxes place. After that, it can be shipped out to CA for "shipping and handling" costs.

So, what was the Nexus vexus debate again?
If the Feds would just stop pleasuring themselves, things like this could be more readily solved.
You are always going to have states that act as tax havens.

It's funny how so many people want to "live large" using our money, but don't want to pay the freight. Living means you pay a pint of blood to the government for the services they provide, and you pay us a pint of blood IF you use our services. At least with us you have a CHOICE. On the whole, most citizens find our services an imperitave to maintaining standard of living. Try and top that.

Don't blame this mess on the Democrats. It seems to me that it was Sen. Phil Gramm, a Texas Repiblican on the Banking Committee, who sperheaded the drive to let the banks and credit card industry shove it way up as far as they want. Republicans never give a hoot about the common man. While it's outrageous that a financial instituion will jack up the interest rate and charge an excessive late fee for missing the due date, even when you make the payment within the same billing cycle, I believe it is sinful when every other lender you have piles on and takes advantage of your timing error to rip you off as well. This corporate greed and immoral profiteering has gotten way out of hand.

Why don't you do as I do when I get pre-approved applications? I open the envelope and rip everything - application and advertisements too- and put in the self-stamp envelope they enclose and send it back to them. I don't want their garbage to fill my garbage can!!

I fix the S.O.B.s every 30 days or so: I pay my balance in full (and yes, I know everyone can't do that!).
That said, 30% and greater interest rates are simply unconscionable. I'm in agreement with the poster who compared the C.C. lenders unfavorably to loan sharks. It's akin to bait-and-switch and should be unlawful.

The ultimate responsibility for the increase in fees and rates by financial institutions falls on the customers who use them. It's a market economy. Nobody makes you borrow someone else’s money to buy that new pair of shoes you really want. While there are exceptions to this rule, the majority of the people who use credit use it to buy frivolous items that they either don’t need or are “super sizing” their purchases (I need a car to get to work but forget the commuter car, I want something my friends will be envious of). Those who use credit responsibly should not be paying for those excesses. It’s a basic principle of finance, the greater the risk, the greater the cost to borrow money (ask GMAC or San Diego). They aren’t lending you money because they’re your rich uncle looking to make you happy. They want a rate of return that compensates them for the risk they are taking when loaning to you because yes, there is a possibility that you won’t pay them back.

On a related note, you borrowed it, pay it back. Quit complaining about the new bankruptcy law. It protects those consumers who actually have the moral decency to recognize their financial obligations by not charging them more to cover the deadbeats who think that they don’t need to pay for things they purchase. How is that any different than stealing?

The bottom line is, if you don’t like what the banking institutions are offering, don’t borrow their money. It saves you all the headache of having to complain about their fees and it save them the money they spend trying to police your inability to pay for what you purchased.

I have no credit card, don't want one. If I see something I want, I save for it. I have a roof over my head, pay all my bills on time w/extra, have a laptop, nice computer, broadband, pets. I don't lack for anything. All I use is a bank account and a debit card. Credit cards are a crutch.

I just sold an investment rental house after it was vandalized. Local enforcement failed follow up on prosecution of the known vandals who were illegal aliens with expired credentials. By the time it was over I had incurred > $150K in credit card debt caused by the vandalism; rising costs of my business; insurance rates; the economy and potential client's inability to pay my fees. My "once courteous" credit card companies offered no "deals" when I called to pay off my balances - they knew they had me at 30%+ interest. As bankruptcy laws have recently just changed, our country is completely unforgiving to most individual's financial mistakes or misfortunes.

I was instructed by my credit card companies that my only other option was to actually "default" on my credit cards; go into collection; ruin my credit, and then, and ONLY then, might I have been able to negotiate a reduction of even the usurious interest on my debt. Fortunate for my creditors I have always paid my debts, student loans, etc. while I have watched others somehow evade the system.

How is it that my state of California and the entire United States can be in debt - but we can't. I'm not sure what the end result will be because everything continues to cost more - including the alleged insurance coverage that was supposed to "cover" the aforementioned vandalism.

I was lucky - THIS TIME - to have the ability to pay my debts (which I did incur) - however, I really don't know what most other people will do. I see a steady decline of our economy, our society, our educational system, and of course, our privacy and civil rights.

PS - Despite reports to the Department of Homeland Security re: the vandal's provable involvement and other prior criminal acts in the U.S.A. - NOTHING was ever done and they continue to live freely in our country. G-d help us all.

I don't have a problem with the credit card companies charging a higher minumum payment. Some of the minumum payments I have seen are rediculous. What I don't care for is that as soon as the higher minumum payment went into effect, the credit card companies also changed to higher interest rates regardless of your payment history. Now you have the higher minumum payment but you still have less money going to the principle because of the higher interest. Doesn't seem far to the consumer.

Well, if an unforgiving credit card issuer wants to jack up my interest from about %12 to %30 for a late payment along with a late fee for a double whammy, I might as well just transfer its balance to another new card with a low promotional interest rate on it. Why would I want to continue using the service of an issuer that has the nerve and dares to pull these unforgiving penalties on me? Isn't a late fee just enough penalty for a simple human mistake? No, it's obviously just plain evil greed perpetrated by the Mafia.

Just pay off your credit cards. Get a second job. You don't expect credit card companies to be to be fair with you, do you? The current administration in Washington is on the side of the wealthy, bought and paid for. Listen to Dave Ramsey. Live Debt Free. Let the Nelson's of the world keep their money.

Credit Card or Criminal Card - however you like to pronounce it. Either way, they have outlived their infant needs for special treatment, so it's time we put some law to them.

I like George W. Bush, and I'm glad he is our President.

I think it is rather interesting that the government worked so hard to put organized crime out of business in the 60's, 70's. Apparently they(the government) liked there practices so much they are allowing them to but in place legally. When the mob would charge exorbitant interest on loans it was called extortion but when banks do it apparently it is fine. So much for the government working FOR "the people"!!

Mark Revenew and I are on the same page on this issue. I use my credit card to make money, not to spend money I don't have. I pay off my card balance every month and in the process get a rebate from the company, which last year amounted to close to $400. In fact, that is the sole reason I use a credit card -- to make that extra money.

Learning how to use credit in this way was a long and arduous road for me, but the foundation of the journey was learning how to stay out of debt, which for me meant paying cash for everything; driving older, used, paid-for cars; wearing out-of-date but comfortable clothing and shoes (usually bought at secondhand stores or at great sales); vacationing only when extra cash was available, buying electronics two or three generations behind the tech curve; acquiring roommates when necessary; and being friends with people who understand this lifestyle and live it themselves.

The payoff has been amazing -- I am beholden to no one, work because I want to and not because I have to pay off debt, have a nice fat savings account, and generally have control over my time and my life. Materially speaking, I am fairly invisible to others -- I don't get noticed for what I own or the trips I take -- but as it turns out, that is a freedom unto itself.

Business Reply Mail costs $0.85 per envelope.

whats next,debtors prisons i try to keep up with my debts but its gettiing hard to do so i will probubly be one of the first to go. but thats allright because im sure that i will see friends,family and nieghbors there.

Wow, I had no idea that this was going on. I'm paying off my cards at a faster pace. These practices are so unfair to all of us. I was almost sucked into the capital one card but not now. Thank you so much for saving me for making a monster mistake. It so easy to buy at the moment thinking oh I will just pay for it later when I get the card. I think alot of young people think this way.

With FICO scores now determining the moral fiber of humanity, credit card industry is run rampid with usury, fraud and premeditated financial entrapment. And why? Because they can. The industry's reasons for changing existing agreements along with placing consumers in default rate often have no specific validity nor do they commit to exactly when and if the high rates will ever drop; even after client proves good faith. Armed with this power and hundreds of thousands of lobbying dollars and republican support, it's certainly no coincidence that bankrupcty laws were also made in favor of credit industry - and just in time too, I might add. Most new credit laws, including bankrupcty, give consumers less options while leaving their assets more easily scrutinzed and accessible. Moreover, the CC industry is making record profits as they have also been granted the right to incorporate all fees towards balance and interest as well, which may in itself, unknowingly put a consumer "over limit" leaving the CC company to reap double penalties at the same high rate. Lastly, the CC industry discriminates against clients who carry balances while catering to those who do not (even if they miss a payment) as they have no leverage against the consumer who can take their business elsewhere. It is also apalling that the credit card companies take no responsibility whatsoever by admitting that these default rates are, in fact, the very reason some clients are were put in fiancial distress. Combine this with new laws that increased minimum payment percentages, the client who, at one time, was able to make substantial payments is now faced with making payments at or near minimum, which creates a perpetual financial nightmare. I have written my senator, and encourage all to do the same. I am hoping the credit industry executives will soon experience the very distress they have instituted and find themselves behind bars with no way out.

I was always taught that stealing was a crime, punishable by serving time in jail or prison. If someone could explain to me how these credit card companies get away with "legalized stealing" without nothing being done to them, I would love to hear it.

Life (Credit) is choices. I've chosen not to carry credit cards and life has become much simpler.

For those who grump about NEEDing a CCard for Car rentals... My wife just told Enterprise goodbye for a rental because they required one... She caught a ride with a relative for gas money plus an hour or so of conversation. Sounds like a win-win for her and the relative. Oh, and a lose-lose for Enterprise and the Credit Card Co.

I had one credit card, Bank of America. I was being charged $39 late fee, $15 overlimit fee and over 30% interest fee charge (around $13.50) during one statement period for $500 balance. When complained to a Bof A rep, he said that is what I had agreed to when I signed up regarding credit terms. Is there anything I can do as a consumer? Since then, I closed the account. Still, is there something we can do about this?

The Banking Industry is as sleazy as the Used Car Industry.

I think it's important to remember that most folks pay their bills on time and don't ever have to face universal default, 30% APR’s, exorbitant late fees, etc. In my opinion, most defaulters are not poor and helpless, but are in fact irresponsible and need to wake up. I know because I was stupid about money in my late teens and early twenties, and I needed a lesson in debt management. Those endless calls from collection agencies were the splash of cold water I needed. After all: I was not born poor, and no one forced me to spend like a German prince.

The real problem: the changes made to bankruptcy laws last year that have made it harder for folks with e.g. huge medical bills to cancel their debts. Bad news.