Credit Cards are probably evil
{ Posted on Thursday, January 29, 2009
by alan
}
Political remarks of almost any kind are inflammatory. I've heard Bruxy over at the Meeting House say every ideologue thinks their view is balanced. I know I'm not balanced - Like Peter, the "rock", I'm like how the Leafs ought to be - passionate and with reckless abandon, sometimes to my detriment. But I wear my heart on my sleeve, and today I have a beef with credit cards.
There's a report today in the Star about the Federal budget changes to credit cards. Now I'm all for credit card clarity and increased education, but the numbers are kind of stupid. 23 companies offering 68 different low-cost credit cards? I guess the number of companies is low. Take the major banks, a majority of regional credit unions, and nearly every big box retailer, and I'd put the count at hire than 30 for sure. But the sample here has 68 low-cost credit cards? That's 3 low-cost cards per company! That's just wrong.
When I was in undergrad at WLU, introductory credit cards were a dime a dozen. I never did use those GM points, nevermind that had I thought about it I probably would have correctly deduced I'd never buy a GM car. But clearly, the card companies are there because credit cards are easy money. It's fail-proof, but certainly not dummy-proof. You can't cover your costs? Raise your rates. I can't read the fine print? My loss. I can read the fine print, but not understand it? Too bad.
I've heard stupid statistics outside too. Once I heard the average American has $12,000 in credit card debt. AVERAGE! $12,000! How many people are smart enough, like a good number of my friends, who have credit cards but never carry a balance? We bring the average way down. Who's bringing the average up!??! My money says credit cards are really a tax on the vulnerable with proceeds going to a distant corporation owned by lots of people who don't carry balances on their credit cards. I think James has something to say about that.
Says in the article, that Liberals want a 12% cap above prime. NDP want the cap at 5%. I would be happy with 10% or less. My point is this: Put limits on the profitability. You clean up the beach, and the pigeons won't s**t on the sand. If credit cards need to maintain profit at 5%+prime, you can bet the corporations will make sure there's a whole lot less defaults, and offer a whole lot less credit for people who can't carry it. It's simple regulation, but regulation in defence of those who need it most.
There's a report today in the Star about the Federal budget changes to credit cards. Now I'm all for credit card clarity and increased education, but the numbers are kind of stupid. 23 companies offering 68 different low-cost credit cards? I guess the number of companies is low. Take the major banks, a majority of regional credit unions, and nearly every big box retailer, and I'd put the count at hire than 30 for sure. But the sample here has 68 low-cost credit cards? That's 3 low-cost cards per company! That's just wrong.
When I was in undergrad at WLU, introductory credit cards were a dime a dozen. I never did use those GM points, nevermind that had I thought about it I probably would have correctly deduced I'd never buy a GM car. But clearly, the card companies are there because credit cards are easy money. It's fail-proof, but certainly not dummy-proof. You can't cover your costs? Raise your rates. I can't read the fine print? My loss. I can read the fine print, but not understand it? Too bad.
I've heard stupid statistics outside too. Once I heard the average American has $12,000 in credit card debt. AVERAGE! $12,000! How many people are smart enough, like a good number of my friends, who have credit cards but never carry a balance? We bring the average way down. Who's bringing the average up!??! My money says credit cards are really a tax on the vulnerable with proceeds going to a distant corporation owned by lots of people who don't carry balances on their credit cards. I think James has something to say about that.
Says in the article, that Liberals want a 12% cap above prime. NDP want the cap at 5%. I would be happy with 10% or less. My point is this: Put limits on the profitability. You clean up the beach, and the pigeons won't s**t on the sand. If credit cards need to maintain profit at 5%+prime, you can bet the corporations will make sure there's a whole lot less defaults, and offer a whole lot less credit for people who can't carry it. It's simple regulation, but regulation in defence of those who need it most.