Debtors Revolt Publicity Pays Off for Ann Minch

Debtors Revolt Publicity Pays Off for Ann Minch

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Credit cards ought to be called by their right name: LOAN cards or DEBT cards. That's what we are really doing when we use them, taking out a loan and increasing our debt, but can you even imagine agreeing to a car loan at 25% interest? How about a home loan? NO WAY. But somehow, we are foolish enough to "agree" to interest rates like that on credit cards. Just using them means we "agree."

I pay off my balances every month. Never late. But today I got a letter from one of my card banks saying they were raising the interest rate on that card to over 25%. Imagine what that would mean if I didn't pay it off monthly. At even simple interest, a $100 item costs over $125 with a year's interest. Someone who runs a balance of $1000 is paying over $250 EXTRA for whatever they bought. Think what that extra $250 could buy you if you weren't paying it!

The banks are rushing to raise credit card interest rates as fast as they can before the new laws go into effect. They shot themselves in the proverbial feet by not only extending but PUSHING credit to people who could little afford it and who would be tempted to buy things they couldn't pay off, and now when they get a lot of defaults, the rest of us are paying for it.

I'm for this woman's revolt. DON'T PAY their exorbitant interest. If you use credit cards, use them wisely and pay them off monthly. If you can't pay them off, at least minimize the amount on the card and look for one that isn't charging you usurious rates. Where to find good information about better cards? Here's a reputable site that can help, and also has a lot of other excellent financial information:

bankrate.com