Credir card debt --staggering

[Trader666]

Who the hell are you to lecture anyone? If you're so smart then why is your life such a mess? Oh I forgot... you're a victim. It's everyone else's fault.

Get your facts straight. It's NOT a fact that 90% of black people don't tip. It may be that 90% don't tip you but only God knows what the actual number is. While we're on tipping I said I wouldn't tip YOU. And maybe they complain because the food or the service sucks or because you have a lousy attitude.

Your analogy shows a typical victim's mentality. Everytime I've gotten a mortgage not only did I only do so only on terms favorable to me, I made sure the contract I was signing reflected it. Victims sign contracts without reading or understanding them and then whine when the lender acts within the terms of the contract they agreed to. Or maybe they can't get favorable terms as a consequence of their own bad choices but because they can't acknowledge their shortcomings they blame the lender. The same with credit cards and oh BTW they don't always raise rates simply because they can (which is the victim's view); often it is done for actuarial reasons.

I think you're massively naive and massively in denial about anything you're not naive about. Grow up and take responsibility for your life and don't blame your situation on everyone and everything else.

Quote from Sandybestdog:

I think I already answered your first part numerous times. You just don't want to realize that a lot of the borrowing didn't just go to pay for extravagant lifestyles.

I am not racist. I said 90% of black people don't tip. It's a fact. This is well known in the restaurant industry. I have even heard of some places having code words for them like "Mondays" and "Canadians." They also often complain excessively to try to get their food for free.

You still haven't answered my question. Is it ok for CC companies to raise my interest rate from 8-24% for no reason other than they can? Did you not read the news this week that the Fed approved massive new regulation to curtail these sort of business practices? You are spitting in the face of millions of American’s who followed the rules and kept good credit, only for the CC company’s to triple their interest rates because they can. This is like somebody getting a mortgage, paying on time for 3 years, and then the mortgage company sending them a letter saying they were jacking the interest rate because they can. You’re an idiot if you don’t see this as abuse. I agreed to a contract and followed it. They changed the rules in the middle of the game because they can. If they hadn’t, my debt would be much lower. Why don’t they just change it to 50% or 75%. I suppose I deserve that for being a loser pizza delivery driver. When Congress and the Fed acutally move on something, you know it’s a problem.

I think your massively mixing up legitimate abuse and unfair advantages of past generations with those that legitamately are lazy and think their owed the world.

And go ahead and keep your tip. Assholes don’t tip either. Pick up your damn pizza

 

[trendlover]

Sandybestdog, you have expierence in the restaurant. Go to a hotel, like Hyatt, Sheraton...or casino if you live near one. Work in the restaurant as waiter and watch and talk to the bartender and learn. Then ask to be a bartender when you turn 18 (where I live) maybe different for you. Very, very good money, hard work, but you work hard now. They will give you health benefits too. Then you have some money to save and start a business or go to school. Good luck to you!

 

[huh]

Quote from Anaconda:

Your example makes sense, but that does not seem to be your situation. Either way, there is no reason to keep the CC debt. Few people would if they had that situation, it really makes no sense. There is leverage in financial markets as well as business ventures available, why leave a 30k debt in your name with the least efficient credit facility out there. Unless you get cash back & perks and are revolving it, hence staying in the grace period. Something business owners do that work inventory turnover, like a close friend of mine.

Well there are a lot of perks that I am receiving from keeping this debt open. I prefer to have easy access to cheap cash in case I need it. I receive points on the monthly finance charges on a couple of the cards which means I can get a small credits to those accounts which is just more free money. I have a very long and good credit history because of this debt which gives me access to more perks. Plus this is all unsecured debt, have you looked at the interest rates on unsecured debt loans?

For instance despite this credit crunch I am still receiving offers to do 2.99% fixed for life credit lines because I have built up a history. I am not talking about borrowing 30K on credit cards and running around on a shopping spree for coach bags and ipods, I'm talking about taking the money and putting it towards something that generates POSITIVE cash flow. Credit card debt is the easiest debt to obtain and if wielded correctly you can find a lot of useful things with it IF DONE RIGHT.

Simple example:
When I first met my wife, she had about 8K left on her car loan at 5.5% interest. She got an offer from american express to take cash out of her account up to 10K at 1.99% FIXED for life with a $75 max one time transaction fee (this was about 6 years ago so rates were more beneficial). She had been getting this offer for several months and had been tossing it in the trash. One day I happen to see it and asked her well do you have any debt thats at a higher interest rate? Sure enough her car loan was at 5.5%. I had her take the cash out and payoff the car loan, then she put the amex into a drawer and never made another charge on it until the car balance she transferred was paid off. She gets 2 benefits from this:

1) she is pocketing around 3% in interest savings having a 1.99% interest vs a 5.5% interest and her cost of doing this "refi" was $75 with no hassle of having to fill out paperwork.

2) She just turned a secured loan into an unsecured loan.

So my point is not that everyday people should take out credit card debt and go invest in the stock market, my point is that if people spend sometime looking at their financial situations they can find some financial inefficiencies that credit card debt can be used to take some advantage of the situation.

Whether you believe my financial situation or not is irrelevant because I'm just pointing out that borrowing at 3.5% and getting a return of 5% is a good thing.

 

[RAY]

Seems that there is some personal history between the procrastinators in this thread. I do not want to get involved in that, and I am not taking sides.

But I would like to bring my unimportant opinion (for the only reason that it will make me feel better that I said it).

1. Do not buy what you can not afford. The only acceptable debt at any given time (inflation depression recession etc.) is a mortgage (one that you can easily afford).*

*Disclaimer: Of course under any KNOWN environment this can change. Kind-of similar to optimal capital structure, but at this level you are getting beyond the average person. Of course there are also instances and exceptions.

2. 'YOU' are not entitled to ANYTHING. Be thankful that you have a toilet that flushes. If you think otherwise you need to travel the world and study some history.

 

[Anaconda]

Quote from huh:


Whether you believe my financial situation or not is irrelevant because I'm just pointing out that borrowing at 3.5% and getting a return of 5% is a good thing.

The 5% has fees associated with it if accessed prior to the lock up periods. The 3.5% is not fixed and can be changed at any moment by the creditor, at whim. It's in the fine print, always is & always was. Happning to people right now even though they did not do anything wrong.

There is no upside from the 5% but plenty of downside on the 3.5%. That's my general point. Does not make sense to do this unless you are kinda forced to.

I see no real reason for anyone to carry credit card debt offset by CDs. It's another story to access credit cards to make a short term investment or use them as revolvers.

 

[Trader666]

Great point. Hey Sandybestdog -- try to make your way in Africa, the Middle East, North Korea, Central America, etc. or study history and THEN tell us about how unfair life is.

Quote from RAY:

'YOU' are not entitled to ANYTHING. Be thankful that you have a toilet that flushes. If you think otherwise you need to travel the world and study some history.

 

[Trader666]

Because you're stupid and don't have good enough credit to make this work for you.

I've borrowed money twice already for a year at NO interest with NO fees and put it in CDs.

Quote from Anaconda:

I see no real reason for anyone to carry credit card debt offset by CDs.

 

[huh]

Quote from Anaconda:

The 5% has fees associated with it if accessed prior to the lock up periods. The 3.5% is not fixed and can be changed at any moment by the creditor, at whim. It's in the fine print, always is & always was. Happning to people right now even though they did not do anything wrong.

There is no upside from the 5% but plenty of downside on the 3.5%. That's my general point. Does not make sense to do this unless you are kinda forced to.

I see no real reason for anyone to carry credit card debt offset by CDs. It's another story to access credit cards to make a short term investment or use them as revolvers.

Well I can only base this on my experience which is the CC companies have jacked up my "purchase" rates up and down over the last 10 years but none have ever raised my fixed for life rate balances from the rate that was initially quoted. In my situation it doesn't matter because I can eliminate the debt in a day if any of these banks decide to play games and I don't personally know anybody that has had a bank change terms on them on a fixed for life or a 0% balance transfer promotion. I guess we have different experiences so we can agree to disagree.

At least it was an entertaining morning going back and forth, lord knows this market is boring as hell to watch today.

 

[huh]

Quote from Sandybestdog:



You still haven't answered my question. Is it ok for CC companies to raise my interest rate from 8-24% for no reason other than they can?

Unfortunately CC companies can and do this there's nothing a consumer can do to fight it. I honestly don't know what the business thinking is behind this but then I don't work for a CC company. Have you considered going to Prosper.com or to a credit repair thing to see if you can get that rate lowered. Worst thing you can do is default and have your credit destroyed which will make life even more difficult.

 

[Trader666]

Great idea loser... then he can wallow in his victimhood uninterrupted by reality checks.

Quote from Anaconda:

Stop wasting your time, he is a retard filled with hate. Just add him to ignore like anyone else who has not stooped down to his level has.