In this week's Credit/Debt Management newsletter, we explored the cause of high credit card debt.
Here's your chance to weigh in. Who, if anyone, do you think is the blame? Leave a quick note in the comments about why you voted that way.
Here's your chance to weigh in. Who, if anyone, do you think is the blame? Leave a quick note in the comments about why you voted that way.
Ultimately, it is the consumer…BUT, and that is a big but…credit card companies are out of control…consumers are inundated with offers, not given the whole story, charged to death with escalating fees…and to make it worse…the poor people who are struggling are getting charged the most. The wealthy get the lowest fees…Credit card companies are not without fault…but it is the consumer who has to monitor spending. We have not used credit cards for ten years and I am thrilled!
It’s like asking whose the blame for cigarette addictions. When you market or solicit credit cards to consumers who do not ask for them, then who problem does it becomes. Yes the consumer has the control but when financial crises occur, I think the credit company should offer the assistance needed to keep that consumer in good standing.
I leave all the blame to the consumer who uses the credit card. I think all newly issued cards should only have a $1500 limit. When you max your limit thats it until you lower your limit. This will keep consumers from higher balances and more cash in their pocket by helping them budget. But this is not what credit card companies want. They want the consumer to buy more and pay high interest and other fees. Shame, shame!