Guest huntingbuddy Posted March 23, 2008 Report Share Posted March 23, 2008 I just got done watching a documentary called Maxed Out. It documents the predatory nature of the lending industry, namely the credit card companies. Here are some points that I wrote down through out the movie. -Banks made available $3 Trillion in credit during 2005 -Credit Card fees have gone up 160% over the last 5 years -Average American household carries $9,205 of credit card debt, and spends an average $1,300/year in interest payments -People who have recently declared bankruptcy are the most popular with the credit card companies. Why? They know two things about these people. #1-They can't file for bankruptcy again. #2-They have a taste for credit. What does that mean? They are willing to make minimum monthly payments forever. -Providian payed $400 million dollars to settle charges they defrauded customers 2001-2 -Providian would hold checks until the account was either late or over drawn or just shred the checks all together. -The number 1 qualification for working at a bank is suggestive selling experience. -Credit Card lending and Sub Prime lending are so profitable that getting families to take more debt will yield more money, even if foreclosures keep climbing. -Debt buying is one of the fastest growing industries on Wall Street. Last year investors bought $15 billion dollars of bad debt alone. -The largest check cashing chain in the United States is funded by Wells Fargo bank. The 4th largest bank. I recommend this documentary to anybody who reads this, it is very informative. Quote Link to comment Share on other sites More sharing options...
Tominator Posted March 23, 2008 Report Share Posted March 23, 2008 Scary isn't it? I try to warn my students all the time. My wife and I haven't had a credit card balance in almost 10 years now. Quote Link to comment Share on other sites More sharing options...
jbeck Posted March 24, 2008 Report Share Posted March 24, 2008 Unreal, the wife and I have a little on the credit card from our China trip. Other than that, we avoid them. Quote Link to comment Share on other sites More sharing options...
wtnhunt Posted March 24, 2008 Report Share Posted March 24, 2008 My wife and I haven't had a credit card balance in almost 10 years now. Pretty well the same here. Use our cards as a convenience and never spend more than we are able to pay back when the bill comes due each month. Quote Link to comment Share on other sites More sharing options...
toddyboman Posted March 24, 2008 Report Share Posted March 24, 2008 Very sad..... I do use my Credit card ALL THE TIME!!! BUT I pay my balance off in FULL every month..... I do this only to rack up points with my card Quote Link to comment Share on other sites More sharing options...
scotman Posted March 24, 2008 Report Share Posted March 24, 2008 Nothing like a legalized mafia..thats sad stuff there. Quote Link to comment Share on other sites More sharing options...
Hardwood_HD Posted March 24, 2008 Report Share Posted March 24, 2008 i dont have a credit card.. im afraid i'll take advantage of it.. Quote Link to comment Share on other sites More sharing options...
Jeramie Posted March 24, 2008 Report Share Posted March 24, 2008 Im betting that average is regional. I know far more people with debt ranging from 20k up. Think about it. People pay 50k+ for cars and dont blink an eye. Spending over 20k and not having to pay it back right off is VERY appealing to a lot of people. My wife and I had to live off of them (to a degree) when we first got married. Even though it was literally a have too it taught me a huge lesson. Quote Link to comment Share on other sites More sharing options...
wtnhunt Posted March 24, 2008 Report Share Posted March 24, 2008 Jeramie has a good point. Kind of going along with credit cards and using them would be being careful not to overextend yourself. Tons of people out there in huge trouble with loans. You can easily overextend yourself with loans, but at some times, you can also get some great deals with low interest or no interest loans, granted you are in a position to pay the oney back or granted you have the money and are using your own money to make you money. Have bought a few things the past few years with 0 apr loans that probably would not otherwise have bought. Quote Link to comment Share on other sites More sharing options...
Randyman Posted March 25, 2008 Report Share Posted March 25, 2008 My wife and I haven't had a credit card balance in almost 10 years now. About 8 years here. We keep one for an emergency, but if we can't use the debit card, the purchase waits for another day. Quote Link to comment Share on other sites More sharing options...
c_lou Posted March 25, 2008 Report Share Posted March 25, 2008 My wife and I carry about $300 a month on credit cards, that gets paid off at the end of each month. Whenever we hear that the average CC balance is $10k, I look at her and say..."We are below average, I think I need to go buy that new shotgun, you know so we can be average.":D Quote Link to comment Share on other sites More sharing options...
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