Category: Credit cards

I hope everything works out for you though

I have two stories that stem from this train of thought.

Story #1 is one of my best friends.

He got married and his wife was somewhat headstrong and followed this mentality. She made good money, so it was somewhat fair for them, but pretty soon my friend started earning more money than her. She has a degree in finance or something or other, but they had separate bank accounts each, plus a ‘shared’ account that the bills were paid out of. They would each chip in 50% of everything, and if someone wanted a car then that payment came from their personal account. Long story short, I’m going to his second wedding in September. For reasons not clear, they finally split up last year and he’s moved on.

Story #2.

A friend of mine from work has a friend who I don’t know, but her husband was of the opinion that the wife raise the kids. This includes any sports or activities they want to play, clothe them, and anything else directly related to them. She works at a small bank and after several years, confessed that she has been stealing money from customers to help pay for their kids stuff. The husband makes good money, but he wouldn’t pay for anything for the kids. I guess he paid for the house and other bills, but the kids were up to her. She confessed to stealing the money from customers because she couldn’t take the thought of it anymore. She didn’t get caught, but confessed because she could no longer sleep at night. The husband now suffers the embarrassment of his wife being charged and the public humility. I feel bad for the wife, and my initial reaction was ‘serves the husband right’.

I hope your situation doesn’t turn out like either one of these ones, and I hope your husband sees the light and joins your team (of one so far) and supports you better in your marriage and bills.

If I could work 12 hour days so that my wife could stay home and raise our children, I certainly would. But our current situation requires her to work as well, and she enjoys working, but I know she would enjoy it more if she went to work for something to do, rather than getting the paycheck.

Read More I hope everything works out for you though

CC reform?? Unlikely!

With a report like this, it doesn’t seem likely that credit card reform will even be discussed in Washington.

Sickening!!

http://money.cnn.com/2006/07/10/pf/creditcards/index.htm

Just today I got 5 offers for credit in my mailbox. I would be a very high risk and they know it! In fact,,, they love it! This is all so disgusting.

I read that report and I truly believe it is a falsity. Creditors don’t make sure an individual can repay… why would they offer lines of credit to students who barely earn anything while in school full time? It’s crazy. But the only ones who can be to blame are ourselves, knowing upfront what we can afford in the first place. Credit card reform would be better off to be replaced by better education to kids and very young adults before they have an inopportunity to make detrimental financial mistakes in their early adulthood. When I charged up my first $3000, I knew full well I could not afford it. If I had better budgeting skills I could have saved that money faster than paying it back! Oh well, no use getting into that. People make mistakes, they live and they learn. The creditors use that to their advantage, I think.

I agree that education is essential. But credit card reform is also necessary. Many of the victims of the credit card companies’ power are not people who spent unwisely and got into a mess. I agree so very much that everyone needs to be educated about credit and to be alert and aware. But the burden of responsibility should not be completely on the consumer’s shoulders – grant it, we all need to be more informed and protect ourselves more than ever before.

For instance, it is not fair that the credit card companies can practice universal default—are allowed to raise an interest rate on one of your accounts simply because they checked your credit report and found that you were late on some other creditor’s account. That should not be allowed, and needs to be the first and most important issue in credit card reform. It’s things like that that scream for reform.

But you’re right, since it is accepted and allowed, then we must take on the task of educating ourselves and guarding ourselves from the risks.

It doesn’t have to be one or the other. Educating people about finanaces is needed, but so is credit card reform.

Also, I thought a certain level of interest was legal up to a point, when it becomes ‘USERY’ and illegal in some states. Am I wrong here that 26.5 and up % is cutting it close to the edge?

Read More CC reform?? Unlikely!