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One of the things that is becoming increasingly clear as the weeks progress is the fact that credit card debt results in a loss of control over your money situation. The most obvious evidence of this is the decision made by Chase to increase credit card minimums at this time.
Many of the folks who are subject to this increase have high enough balances that they are unable to simply pay them off and move on. And with credit standards being what they are right now, it is often too difficult to qualify for a new credit card for a balance transfer. If the minimum balance cannot be met, Chase is willing to “generously” keep the old minimum — if you are willing to agree to an end to any introductory rates and agree to a higher interest rate. (Note: Chase probably secretly hopes that you will keep your intro rate and try to make the new minimum. Then, when you reach the point where you can’t make your minimum payment, Chase can apply an even higher default rate to your account.)
At any rate, there is precious little that can be done about this. While grossly unethical, Chase’s actions nevertheless fall within the bounds of the law. This leads one to the conclusion that credit card debt clearly puts the credit card company in control. If you do use credit cards (and they can be a great tool), you should restrain your usage. Make sure you only charge what you can pay off each month.
July 9, 2009 at 3:34 pm
Yup, debt is slavery, as some say.
July 24, 2009 at 7:08 pm
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