Credit Cards

I recall when credit cards first were issued. I am not talking about gas credit card, who were first.
They had a limit of $300, maximum.
Soon it was $600. Then, more.
I use a card now as a convenience, but I am able to pay it completely every month and avoid my part of the interest. Otherwise I would have to constantly be writing checks or going to the bank for cash.
I feel badly about the retailer having to eat his share of the bank interest, but obviously by now it has become a business expense and he tries to increase his prices to cover it. To not take credit cards however does reduce your business volume substantially in this day and time.
Credit cards could be good, if the interest was low, the cards were managed by the owner carefully, and paid off as soon as possible. But the banks do not require that and so it doesn't happen!
What is the answer? A law of course.

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OK, $
Cyclist's picture
Submitted by Cyclist on Sun, 08/12/2007 - 5:00pm.

Give us an example of your proposed law.

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Conservatism – apply it directly to the forehead.


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cyclist
Submitted by dollaradayandfound on Sun, 08/12/2007 - 7:58pm.

It's simple: don't let banks offer us dummies too much credit on credit cards! A reasonable maximum, and must be paid in six months or less at same interest rate as home loans. Example: If you borrow (use card) for $500 in January, you must pay $500 minimum for that by July. If you add some in February, that amount has to be paid also by August. Simple. If not, card cancelled.

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credit cards
Submitted by susieq on Sun, 08/12/2007 - 10:01pm.

My position is that if you can't afford to pay cash for it, you certainly can't afford to charge it.

The reason most people charge is because they don't have cash to pay because they used the cash to pay their monthly credit card bills. If they would just stop purchasing until their cards were paid off, they could be on a cash basis.

Most people think twice before buying if they are paying cash. It's easy to hand a merchant a credit card, but most people hate to turn loose their cash.

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susie: no casj?
Submitted by dollaradayandfound on Mon, 08/13/2007 - 6:47am.

What if you don't have any cash and you are hungry? Kids need clothes now? Electric bill needs paid?
I guess you could just skip out of the doctor's office?

I know Don't get into that shape, huh?
What wonderful, magnificant advice. Try it on poor people!

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$ - glad you asked
Submitted by susieq on Mon, 08/13/2007 - 7:22am.

Dollar,
I'm not talking about hardship cases. My advice would be for people making $100,000 a year and spending $150,000.

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