[Rhodes22-list] for your consideration - credit cards

Rik Sandberg sanderico1 at gmail.com
Mon May 19 19:24:41 EDT 2008 

Robert,

I can't argue with you on the credit card thing. The term usury comes to 
mind. But, I have a card with a cash rebate and I pay it off religiously 
every month. As usual, you have to keep your head in the game to stay 
ahead of them. I guess you could change cards if you aren't happy with 
the way BOA is doing things. I'm not too surprised they're jacking their 
rates, the way things have been going for them lately.

I've got a US Bank card that I've been reasonably happy with.

Really though, I have a hard time deciding who has made bigger fools of 
themselves in this credit mess, the borrowers or the lenders.

Fortunately, I have no debt and the whole thing hasn't really bothered 
me too much.

Rik

"Is this gonna' put me in a bad mood? 'Cause I'm not usually this pleasant".... Rik Sandberg



Robert Skinner wrote:
> Rik - you are right as far as you go, and I agree with what you say.
> If you don't need it, don't go on the arm for it.
>
> My issues are that there are occasionally (for some, often) things 
> that are needed, not just discretionary, and the current financial 
> environment is such that predatory lenders (AKA credit card 
> companies) generally take full advantage of someone's momentary 
> adverse circumstances.  
>
> Laws and practices have changed to give them all the cards in the 
> game.  As a result of the scattering of families and the mobile 
> nature of communities, where neighbors change daily, the old 
> conventions of microloans between family and friends to tide them
> over a bad time have died, leaving the field to financial 
> organizations.
>
> Their purpose, as you point out, is to make a buck, not be nice guys.
> In addition, the legal framework has helped them grow longer teeth 
> through allowing consolidation and passing bank-friendly legislation.
>
> I think that is what needs some attention.
>
> /Robert
> ----------------------------------------------------------------------
> Rik Sandberg wrote:
>   
>> Robert,
>>
>>     
>>> Rik, it is not quite so simple as who pays
>>> interest and who collects it.
>>>       
>> Well silly me. Here I thought that if we just stopped buying things we
>> don't need with money we don't have, the problem would be solved..... Or
>> would that be too simple?
>>
>> Rik
>>
>> "Is this gonna' put me in a bad mood? 'Cause I'm not usually this pleasant".... Rik Sandberg
>>
>> Robert Skinner wrote:
>>     
>>> Something more for consideration:
>>>
>>> I have been using a Bank of America credit card for
>>> 20 years, and have always paid by bill on time.  I
>>> used to have 25 days to pay the bill.  They have
>>> made a hell of a lot of money from me - about 5% of
>>> everything that I have bought over that time.  But
>>> now that is not enough for them.
>>>
>>> Recently they have tightened up their terms to 20
>>> days.  In addition, they now take their own sweet
>>> time after the closing date getting the statements
>>> into the mail.  The net result is that I have only
>>> a couple of days to get off a check.  If I plan to
>>> get out of town for a couple of weeks, I have to
>>> get or calculate a balance and pay in advance.
>>>
>>> The alternative is a shower of fees and interest
>>> charges, which have been increased as the grace
>>> period has been reduced.  So far I have dealt with
>>> it without getting bitten.
>>>
>>> I checked, and Chase bank and Discover have also
>>> changed their terms in an identical way.  It is
>>> clear that allowing Bank of America to buy out the
>>> small local banks and their credit card
>>> competitors has materially reduced competition and
>>> effectively eliminated consumer options.  They
>>> provide a cover for the minnows to hide under.
>>>
>>> The effect, if not the intention, is to game the
>>> customer into paying late.  I fully anticipate
>>> that the pay period will be shortened to 15 days
>>> in the next 5 years, forcing customers to allow
>>> them to draft a bank account or be late.
>>>
>>> Why not use debit cards?
>>>
>>> The Hannaford security breach exposed tens of
>>> thousands of customers bank accounts to raiding,
>>> and thousands had to cancel their debit cards
>>> and/or bank accounts.  Electronic communications
>>> are not by any means secure, and a debit card
>>> breach (by law) is not immediately communicated
>>> to the customer.  It took Hannaford 3 months to
>>> 'fess up.  When the money is already gone from
>>> your account, it is up to you to scramble to get
>>> it back -- eventually -- while checks bounce like
>>> Ping-Pong balls and your credit is ruined.
>>>
>>> Rik, it is not quite so simple as who pays
>>> interest and who collects it.  We have allowed
>>> the consolidation of financial power to the point
>>> where the average guy has few options if he has a
>>> run of bad luck.  The walls cave in.
>>>
>>> While some are concerned that we might tax them
>>> for the benefit of others, it is increasingly
>>> obvious that the corporations are being given
>>> relatively unfettered license to farm the populace
>>> for their own benefit.
>>>
>>> There is something wrong here.
>>>
>>> And, by the way, my home is paid for.
>>>
>>> /Robert
>>>
>>> -----------------------------------------------------
>>> Rik Sandberg wrote:
>>>
>>>       
>>>> John,
>>>>
>>>> Glad you liked my quote, but you may have misinterpreted the message.
>>>>
>>>> Actually, it is not supposed to be a slam on bankers as much as a wakeup
>>>> call to folks who can't seem to buy anything without paying for it on
>>>> time + interest. The bottom line cost seems to never be considered
>>>> anymore, only the monthly payment. Compound interest is a beautiful
>>>> thing when it's working in your favor, but a tough adversary when it's
>>>> working against you.
>>>>
>>>> One's "home" isn't HIS home until he's paid for it.
>>>>
>>>> Take good care,
>>>> Rik
>>>>
>>>> "Is this gonna' put me in a bad mood? 'Cause I'm not usually this pleasant".... Rik Sandberg
>>>>
>>>> Chris Geankoplis wrote:
>>>>
>>>>         
>>>>> Thanks John!
>>>>> Chris G
>>>>> ----- Original Message -----
>>>>> From: "John Shulick" <jsbudda at verizon.net>
>>>>> To: <rhodes22-list at rhodes22.org>
>>>>> Sent: Saturday, May 17, 2008 9:56 PM
>>>>> Subject: Re: [Rhodes22-list] for your consideration
>>>>>
>>>>>
>>>>>
>>>>>
>>>>>           
>>>>>> <
>>>>>> "There's a reason why bankers drive Cadillacs and the rest of us drive
>>>>>> Chevies. Bankers collect interest,... The rest of us pay it" .... Rik
>>>>>> Sandberg
>>>>>>
>>>>>> "all through this world I've traveled I've met lots of funny men some rob
>>>>>> you with a six gun others
>>>>>>  with a fountain pen and through this world I've rambled and through this
>>>>>> world I've roamed you never seen an outlaw drive a family from there home.
>>>>>>
>>>>>> "Arlo Guthrie.  A fine comment giving the credit crisis we face as a
>>>>>>
>>>>>>
>>>>>>             
>>>>> nation.
>>>>>
>>>>>
>>>>>           
>>>>>>                           JOHN Shulick
>>>>>>                                Pgh. Pa.
>>>>>>
>>>>>>
>>>>>> --
>>>>>> View this message in context:
>>>>>>
>>>>>>
>>>>>>             
>>>>> http://www.nabble.com/Harmony-at-Mackey%27s-Marina-tp17251619p17299273.html
>>>>>
>>>>>
>>>>>           
>>>>>> Sent from the Rhodes 22 mailing list archive at Nabble.com.
>>>>>>
>>>>>> __________________________________________________
>>>>>> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>>>>>>
>>>>>>
>>>>>>
>>>>>>             
>>>>> __________________________________________________
>>>>> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>>>>>
>>>>>
>>>>>
>>>>>           
>>>> __________________________________________________
>>>> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>>>>
>>>>         
>>>       
>> __________________________________________________
>> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>>     
>
>

More information about the Rhodes22-list mailing list