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aktrekker
18-12-09, 03:24
Congress passed a law limiting fees that credit card companies can charge. But they did not set a limit on interest rates - how stupid of them.
Many companies have been raising interest rates to make up the difference.

Now one bank that had steep fees has set a new record - highest interest rate. This just has to fall under predatory lending practices.

Credit card's newest trick: 79.9 percent interest (http://finance.yahoo.com/news/Credit-cards-newest-trick-799-apf-3359014390.html?x=0&.v=4)

Come on, is ANYONE stupid enough to actually take one of these?

matrix54
18-12-09, 03:40
Imagine trying to pay off something like that after a shopping spree :rolleyes:

laralives
18-12-09, 03:44
o.O How wonderful; and the government is supposed to look out for the people's.

matrix54
18-12-09, 03:45
you trust the government :vlol:

Spong
18-12-09, 04:19
o.O How wonderful; and the government is supposed to look out for the people's.

Since when? All any government is interested in is staying in power.

Uzi master
18-12-09, 04:27
Come on, is ANYONE stupid enough to actually take one of these?

Of course not, We'll all just take five

SamReeves
18-12-09, 05:01
The consumers need to be a lot smarter and not act like the government. Meaning don't spend more than you really have, otherwise the interest rates wouldn't be sky high.

rowanlim
18-12-09, 05:27
The consumers need to be a lot smarter and not act like the government. Meaning don't spend more than you really have, otherwise the interest rates wouldn't be sky high.

I completely agree with this. Excessive spending has led us to this problem in the 1st place, the best way to directly alleviate the economic strain on our lives is to tighten the reins on the money purse.

Melonie Tomb Raider
18-12-09, 05:41
Credit cards are great if you're responsible. I have one major credit card, and a couple of store credit cards as well. I never, ever spend more than I already have in my bank account. Credit cards shouldn't be used as loans, but more so, credit builders. My credit score is over 720 now, and I know the credit cards definitely helped, because I pay them completely off every month. My car payment and student loans are enough debt as it is, I'd rather not have to add credit card debt. :p

Big Matt
18-12-09, 06:28
I have no use for credit cards (especially one with an 80% interest rate). I've never had a credit card in my life. If cash or my debit card isn't adequate then the item really isn't that important.

If you don't have the money to buy something then you don't buy it. I've always thought this concept was about as simple as it gets. Sadly, I was mistaken. The current state of debt on national and individual levels seems to indicate that people just don't get it.

laralives
18-12-09, 07:04
you trust the government :vlol:

I was obviously being sarcastic. :rolleyes: I greatly distrust the government, but can't really do anything about it. Which is why I said what I said.

Capt. Murphy
18-12-09, 13:26
Any time I see topic regarding credit cards I feel I have to mention the differences between a credit and debit card.

A Debit card deducts straight from your checking account. So, you have to be very careful using them. Such as for hotel stays - they may authorize enough to cover Room, Tax, plus 15% for any incidental charges that may occur. Once it's charged the real/whole amount - the rest of it may not be de-authorized (or) the "hold" on it may not be released until a period of about 2 days. Your limit is the amount you have in your checking account.

When you use a credit card - it is borrowing 'on good faith' that you will repay the debt or amount owed for good/services over time. The limit you have is your current credit card limit.. Regardless of how much money you have (or don't) in your checking.

Also, if you use a credit (or debit) card in more than one place in a very short period of time (like within an hour... maybe less than that...) you may have trouble using your card because -- My guess is that it is the banks have a way of protecting you if you are charging too much on your card.

I've had people to use a credit card where I work, and it won't authorize. I usually ask them if they used it to get gas somewhere just a while ago... Most of the time that is the case. I can usually call it in and the card will be fine.



Now... 80%. So, it's like you're not buying from a store, but the credit card company and they're jacking up the price. All I can say is that anyone foolish enough to do this deserves what they get.... And I guess I can say the same for anyone that doesn't keep track of what their credit card current interest rate is. :pi:

Aranara
18-12-09, 14:03
How stupid can people be?? :eek:

Sgt BOMBULOUS
18-12-09, 14:31
Unless my math is mistaken, if you held the same balance for a year you'd already double your principle. If you made minimum payments for 3 years, your principle would go up by a factor of almost 10!!!

Squibbly
18-12-09, 15:34
^ That sounds about right.

:yik:

irjudd
18-12-09, 16:13
Come on, is ANYONE stupid enough to actually take one of these?

I'd say the same people that are stupid enough to actually use a cash advance or car title loan.

robm_2007
18-12-09, 16:17
^those interest rates are just :cen: ridiculous.

my sister had a cash advance loan that had 400% interest rate (if im remebering correctly)

aurora89
18-12-09, 17:24
asdkldsj I really hope this doesn't happen to my cards. :( I had to put like $3,000 on them when I got sick and couldn't work... that would be some freaking expensive groceries.

aktrekker
18-12-09, 22:49
I just got an offer in the mail from this same bank. It was for one of the old cards. Trying to squeeze in a few more before the law goes into effect.

Interest rate 9.9% fixed. They make their money from fees on this one.
$29 setup fee.
$95 some other one-time fee.
$49 annual fee.
$7 monthly fee.

The monthly fee is in addition to the interest.
So if you accept the offer and are approved, when you get the new card in the mail you will already be over $150 in debt. And you haven't even used the card yet!

Draco
18-12-09, 23:48
All credit should be at insane interest rates, we would all be much better off.

TR FAN 18
19-12-09, 09:51
79.9% APR? That's nothing compared to what I saw on a pay day loan advert on Dave. It was for Quick Quid and in the small print I saw the shockingly HIGH RATE of 2,356% APR! No, that is NOT a typo. It really did say that in the advert. It worked out at like 6.45% per DAY. So, borrow 100 and you have to pay back an extra 6.45 EACH DAY.
Seriously, do people REALLY fall for this rubbish? :eek:

aktrekker
19-12-09, 20:41
^Yes they do. How else could the companies exist?

All credit should be at insane interest rates, we would all be much better off.

But people will still use the credit. We would be much worse off. Instead of money going into the economy, it would line the pockets of already rich businesses. People would stay in debt longer. It would be very bad for everyone.

The only answer is to learn to live on what you have. Nobody should NEED credit.

remote91
19-12-09, 20:43
omg dats a well gd idea!

Minty Mouth
19-12-09, 20:50
79.9% APR? That's nothing compared to what I saw on a pay day loan advert on Dave. It was for Quick Quid and in the small print I saw the shockingly HIGH RATE of 2,356% APR! No, that is NOT a typo. It really did say that in the advert. It worked out at like 6.45% per DAY. So, borrow 100 and you have to pay back an extra 6.45 EACH DAY.
Seriously, do people REALLY fall for this rubbish? :eek:

Holy Wotsits!?!?