Obama's Foreclosure Plan

Obama plans to work with regulators this week and delve into one of the few remaining targets keeping many people afloat, the Credit Card Companies! Regardless of whether this is good or bad for any of us, the net result will be a further tightening of credit to consumers!

Credit Card Companies Suck!

Lets not beat around the bush on this one… from annoying phone calls at all hours of the day, with the latest and great offers, to the volumes of junk mail we get in our mailbox every week, the Credit Card lenders are predatory as hell, and for many consumers, the thought of rolling over your unsecured debt for 6 months on a no interest card is very tempting! What they bury in the fine print however, is that with one small technicality like being 1 day late on a payment, your rate balloons and all terms are null and void, thus putting you into quite a pickle that may take years to get out of!

Credit is Just One Big Circle

Think about this for a second… Where do the credit card companies get the money to accommodate the “Unsecured” debt piling up on your credit card statement? They get it from the banks. As a matter of fact, most credit card companies are simply direct, or spinoff credit companies, partially or wholly owned by the same banks that issue the cards!  One of, if not the largest credit card lender is who? Citibank.  Next comes MBNA, which is owned by Bank of America. Do these two names ring a bell? Both are receiving taxpayer money as part of the foreclosure bailout!

Will Credit Card Reform Freeze Lending Further

If the credit card companies, or the banks, stop issuing cards to consumers or close credit accounts of those who are at risk of defaulting, the end result is more and more consumers defaulting on home loans, which once again starts the same cycle of tightening credit!

Its a catch 22 situation and have no doubt, we will have to deal with it one day anyhow!!

How many of You Live off Credit Cards?

I know there are many… in fact, we do too, in order to keep as much cash as we can in the bank! One day, it will bite us all in the ass!