Americans now $1 Trillion in credit card debt.........

[True Grit Farms]

Credit cards are great for those that can afford one. Fraud is a big thing now in banking, and running a business off debit cards is a bad deal and a good way to lose your tail. A debit card is your money, a credit card is someone else's money. You will probably get your money back through the bank in a fraud case, but the bank doesn't have to give you your money back when you use a debit card. It could take months to sort things out when it comes to fraud case's. You are nuts if you run a business off of debit cards.

 

[Hunter]

I use a credit card for 99% of my spending. Why, b/c I get the points and I don't buy anything I can't afford.
Credit cards are safer b/c if my CC number is stolen I am only out a certain amount if any....maybe $50.
If my debit card number is stolen I am out the money until I prove to the bank. Not sure on the amounts as every bank may be different.

An accounting degree is not easy and the CPA is definitely not an easy test.
Why does it matter who paid for his college?
I am not sure a loan officer makes a lot of big decisions. He will take a persons profile to higher ups or loan committee and they decide on the loan.

 

[Rafter S]

NBC News (NBC) -
A just-released federal reserve report shows credit card debt has reached a record one-trillion-dollars.
Couple that with survey results from creditcard-dot-com that found those in debt are outright pessimistic about digging their way out.
"About two thirds of American adults with debt aren't convinced that they're ever going to get out of it," Matt Schulz, Creditcard.com.
Matt Schulz says their survey comes at the beginning of a year where debt could get worse because interest rates are rising and wages are still stagnant.
"You add all of that up and it's a bit of a perfect storm when it comes to dealing with debt..."
But deal with debt, we must, he says and the most effective way out that he likes is a balance transfer credit card.
"Nerdwallet" just released its top ten balance transfer cards that Schulz says are attractive because they're interest-free.

"Including some that allow you to not pay interest on that balance for 15 months or even 21 months," said Matt Schulz.
Even though balance transfer cards can be tricky because of fees and strict deadlines, Schulz says they're still a god-send.
"That interest grows faster than you would believe."
So...that means making debt-reduction a resolution worth keeping.

I disagree with that statement. Transferring credit card balances to another credit card is putting a band-aid on a bleeding artery. It's dangerous because it makes people feel like they gained something, when they really did almost nothing toward solving their problem. The best way to get out of a debt crisis is to stop borrowing and live on what you make (and listening to Dave Ramsey's radio program will also help).

Transferring balances to a card that doesn't require payments for 15 or 21 months is even worse because it's just pushing the problem down the road.

 

[dun]

One of the worst commercials I hear on the radio "Don't let the credit card company TRICK you into thinking you have to pay them". Ya, don't let them trick you into paying them back for money you borrowed from them....

Those commercials always really PO me too.
Years ago I had a secretary that would run up her credit card and when it got too high she would get another one and use it to pay off the first one, wash and repeat. I talked to her mother about it and suggested she have a chat with the daughter about the way she handled money. Her mother was in her 40 and said that she handled her money exactly the same way.
I use a credit card instead of checks or cash over $20. Pay it off at the beginning of the month and start over. Money is sitting in the bank (barely) earning interest. Works for me.

 

[TexasBred]

[Im seeing these guys that are getting hired that are my age. They are the flunkies... the rejects... they are incompetent... I wouldn't hire them to maintain my yard.

Give you a prime example. Guy I know went to A&M and has some kind of accounting degree paid for by Grandpaw. After 6 years or what ever he got out, couldn't pass the CPA exam, bounced around from here to there couldn't get a job. Still lives in grandpaw's "rent" house. Grandpaw finally gets him a job as a loan officer at a bank GP is on the board at. Now this guy who has not done any thing with his life is a financial expert. He his now coaching all his other lazy, good for nothing buddies and getting them banking jobs also. These guys don't know jack about jack. They spit out what ever the bank tells them to.

The problem with credit cards is people have so many misconceptions about how they work vs debit cards. I go round and round with people until finally they just admit they like using them because they think its a safety net. They say they are safer... and they are not. They say they get points... so I tell them you can get DC that do the same thing. They say they need it for work... I show them I use a dc for my company expenses. People will say I like using other people's money... your not using other people's money... your paying a bank to let your use your own money at a later date.

The fact is you spend more when you walk in with a credit card. Why else would a business pay for that service if they didn't think they would make it up off the customer.

I'll take your' word on the grandpa/grandson deal. Never seen it myself but do know several banking "families" where several generations have been extremely successful. The guy you describe would probably be a failure at about anything he tried so not the banks fault. Only grandpa's fault for allowing it. Eventually these goofballs will get the bank in big trouble with regulators and cost them a ton of money.
As for credit cards, etc. it is the borrowers that has to be responsible for his own actions. Banks don't make anything off issuring debit or credit cards except a late charge if you pay late and finance charge if you choose to pay it out monthly. As for credit card vs debit card it's as broad as it is long. Neither is a safety net, neither is a savings account, however, I'm more selective where I use my DC as apposed to the credit card. Pay your account in full and you are not paying the bank for anything as there is no charge for either DC or CC. People who are tempted to spend more when they use a credit card simply need to learn some discipline. The bank nor the retailer is twisting their arm however, the retailer will use all his marketing skills he can to entice you to buy whether cash, check or credit...just good business. He don't care how you pay nor how much you spend. His job is to sell. Credit in the hands of a disciplined man can be an awesome tool. In the hands of a fool it can be poison.

 

[TexasBred]

I know what you're saying but bankers only do what they're suppose to do. They cannot make your decisions for you nor plan your future. Only make sure their money is secured and repaid. Can't blame anybody for that.

I guess I am not much different. It would be nice if everyone who owes me would pay me.

I sold 48 tons of patio stone to a guy from out of town. He wrote me a hot check. It took me 4 months and two 100 mile trips to get my money. He tried to renegotiate the price on the stone the whole time.

Glad it worked out. Sort of hard to repossess 49 tons of rocks.

 

[Hunter]

Banks make money off of commercial credit cards. Not sure about retail or individuals.

 

[Caustic Burno]

I carry zero debt I guess that is the product of being raised by depression era parents. My grandpa lost 300k when the banks collapsed. Then the guvmit men showed up and went to killing people's hogs and cattle and pushing them in trenches. Lawyers came through and bought up people's mineral rights for five to ten dollars off starving
people. Never found out why he was so down on preachers bet it was a good story.

That said I have a credit card as it is the only way to safely order stuff off the internet.

 

[Brute 23]

[Im seeing these guys that are getting hired that are my age. They are the flunkies... the rejects... they are incompetent... I wouldn't hire them to maintain my yard.

Give you a prime example. Guy I know went to A&M and has some kind of accounting degree paid for by Grandpaw. After 6 years or what ever he got out, couldn't pass the CPA exam, bounced around from here to there couldn't get a job. Still lives in grandpaw's "rent" house. Grandpaw finally gets him a job as a loan officer at a bank GP is on the board at. Now this guy who has not done any thing with his life is a financial expert. He his now coaching all his other lazy, good for nothing buddies and getting them banking jobs also. These guys don't know jack about jack. They spit out what ever the bank tells them to.

The problem with credit cards is people have so many misconceptions about how they work vs debit cards. I go round and round with people until finally they just admit they like using them because they think its a safety net. They say they are safer... and they are not. They say they get points... so I tell them you can get DC that do the same thing. They say they need it for work... I show them I use a dc for my company expenses. People will say I like using other people's money... your not using other people's money... your paying a bank to let your use your own money at a later date.

The fact is you spend more when you walk in with a credit card. Why else would a business pay for that service if they didn't think they would make it up off the customer.

I'll take your' word on the grandpa/grandson deal. Never seen it myself but do know several banking "families" where several generations have been extremely successful. The guy you describe would probably be a failure at about anything he tried so not the banks fault. Only grandpa's fault for allowing it. Eventually these goofballs will get the bank in big trouble with regulators and cost them a ton of money.
As for credit cards, etc. it is the borrowers that has to be responsible for his own actions. Banks don't make anything off issuring debit or credit cards except a late charge if you pay late and finance charge if you choose to pay it out monthly. As for credit card vs debit card it's as broad as it is long. Neither is a safety net, neither is a savings account, however, I'm more selective where I use my DC as apposed to the credit card. Pay your account in full and you are not paying the bank for anything as there is no charge for either DC or CC. People who are tempted to spend more when they use a credit card simply need to learn some discipline. The bank nor the retailer is twisting their arm however, the retailer will use all his marketing skills he can to entice you to buy whether cash, check or credit...just good business. He don't care how you pay nor how much you spend. His job is to sell. Credit in the hands of a disciplined man can be an awesome tool. In the hands of a fool it can be poison.

It's a fact about the credit card spending. There are plenty of studies out there because people don't see it as spending "their" money.

38% of American have credit card debt. That's an epidemic.

If we go off the... "its their choice" logic why don't we just legalize drugs, why do they cap interest rates... just let people do what they want and fall on their butts.

These banks give loans and credit cards to people who do not need them. They blindly send them out to kids, dead people, pets, people they know have a bad history of paying bills, people who don't understand the terms, ect... That's irresponsible on their part and taking advantage of people. There is a special place in hell for people who do that.

 

[TexasBred]

Banks make money off of commercial credit cards. Not sure about retail or individuals.

Credit card servicing company usually gets those fees that are collected.

 

[TexasBred]

[Im seeing these guys that are getting hired that are my age. They are the flunkies... the rejects... they are incompetent... I wouldn't hire them to maintain my yard.

Give you a prime example. Guy I know went to A&M and has some kind of accounting degree paid for by Grandpaw. After 6 years or what ever he got out, couldn't pass the CPA exam, bounced around from here to there couldn't get a job. Still lives in grandpaw's "rent" house. Grandpaw finally gets him a job as a loan officer at a bank GP is on the board at. Now this guy who has not done any thing with his life is a financial expert. He his now coaching all his other lazy, good for nothing buddies and getting them banking jobs also. These guys don't know jack about jack. They spit out what ever the bank tells them to.

The problem with credit cards is people have so many misconceptions about how they work vs debit cards. I go round and round with people until finally they just admit they like using them because they think its a safety net. They say they are safer... and they are not. They say they get points... so I tell them you can get DC that do the same thing. They say they need it for work... I show them I use a dc for my company expenses. People will say I like using other people's money... your not using other people's money... your paying a bank to let your use your own money at a later date.

The fact is you spend more when you walk in with a credit card. Why else would a business pay for that service if they didn't think they would make it up off the customer.

I'll take your' word on the grandpa/grandson deal. Never seen it myself but do know several banking "families" where several generations have been extremely successful. The guy you describe would probably be a failure at about anything he tried so not the banks fault. Only grandpa's fault for allowing it. Eventually these goofballs will get the bank in big trouble with regulators and cost them a ton of money.
As for credit cards, etc. it is the borrowers that has to be responsible for his own actions. Banks don't make anything off issuring debit or credit cards except a late charge if you pay late and finance charge if you choose to pay it out monthly. As for credit card vs debit card it's as broad as it is long. Neither is a safety net, neither is a savings account, however, I'm more selective where I use my DC as apposed to the credit card. Pay your account in full and you are not paying the bank for anything as there is no charge for either DC or CC. People who are tempted to spend more when they use a credit card simply need to learn some discipline. The bank nor the retailer is twisting their arm however, the retailer will use all his marketing skills he can to entice you to buy whether cash, check or credit...just good business. He don't care how you pay nor how much you spend. His job is to sell. Credit in the hands of a disciplined man can be an awesome tool. In the hands of a fool it can be poison.

It's a fact about the credit card spending. There are plenty of studies out there because people don't see it as spending "their" money.

38% of American have credit card debt. That's an epidemic.

If we go off the... "its their choice" logic why don't we just legalize drugs, why do they cap interest rates... just let people do what they want and fall on their butts.

These banks give loans and credit cards to people who do not need them. They blindly send them out to kids, dead people, pets, people they know have a bad history of paying bills, people who don't understand the terms, ect... That's irresponsible on their part and taking advantage of people. There is a special place in be nice for people who do that.

I'm aware of all that buddy but I betg you would shyt if your banks called and cancelled all your lines of credit, credit cards and debits cards and all you had to operate on was cash only.....your cash.....time would tell and sooner or later the time would come when you would come begging. You may never admit it but you know its true !!!! I don't owe anyone either but I do keep one credit card and I have a debit card and I always will. (I also buy life insurance knowing 100% that I will dam sure die and the wife will probably remarry). :lol2: :lol2:

 

[TexasBred]

I carry zero debt I guess that is the product of being raised by depression era parents. My grandpa lost 300k when the banks collapsed. Then the guvmit men showed up and went to killing people's hogs and cattle and pushing them in trenches. Lawyers came through and bought up people's mineral rights for five to ten dollars off starving
people. Never found out why he was so down on preachers bet it was a good story.

That said I have a credit card as it is the only way to safely order stuff off the internet.

Yep same here. Bought a pair of boots last night for $20....really was $90 something but they gave me $70 for using their card (or did they)?? :lol: :lol:

 

[Hunter]

Banks make money off of commercial credit cards. Not sure about retail or individuals.

Credit card servicing company usually gets those fees that are collected.

Banks sell credit cards to their commercial clients and then get money back via rebates or profit sharing however you want to say it.

 

[Caustic Burno]

I'll take your' word on the grandpa/grandson deal. Never seen it myself but do know several banking "families" where several generations have been extremely successful. The guy you describe would probably be a failure at about anything he tried so not the banks fault. Only grandpa's fault for allowing it. Eventually these goofballs will get the bank in big trouble with regulators and cost them a ton of money.
As for credit cards, etc. it is the borrowers that has to be responsible for his own actions. Banks don't make anything off issuring debit or credit cards except a late charge if you pay late and finance charge if you choose to pay it out monthly. As for credit card vs debit card it's as broad as it is long. Neither is a safety net, neither is a savings account, however, I'm more selective where I use my DC as apposed to the credit card. Pay your account in full and you are not paying the bank for anything as there is no charge for either DC or CC. People who are tempted to spend more when they use a credit card simply need to learn some discipline. The bank nor the retailer is twisting their arm however, the retailer will use all his marketing skills he can to entice you to buy whether cash, check or credit...just good business. He don't care how you pay nor how much you spend. His job is to sell. Credit in the hands of a disciplined man can be an awesome tool. In the hands of a fool it can be poison.

It's a fact about the credit card spending. There are plenty of studies out there because people don't see it as spending "their" money.

38% of American have credit card debt. That's an epidemic.

If we go off the... "its their choice" logic why don't we just legalize drugs, why do they cap interest rates... just let people do what they want and fall on their butts.

These banks give loans and credit cards to people who do not need them. They blindly send them out to kids, dead people, pets, people they know have a bad history of paying bills, people who don't understand the terms, ect... That's irresponsible on their part and taking advantage of people. There is a special place in be nice for people who do that.

I'm aware of all that buddy but I betg you would shyt if your banks called and cancelled all your lines of credit, credit cards and debits cards and all you had to operate on was cash only.....your cash.....time would tell and sooner or later the time would come when you would come begging. You may never admit it but you know its true !!!! I don't owe anyone either but I do keep one credit card and I have a debit card and I always will. (I also buy life insurance knowing 100% that I will dam sure die and the wife will probably remarry). :lol2: :lol2:

Very true on the credit line.
I carried a letter of credit to many a registered sale as well as equipment auctions

 

[greybeard]

These banks give loans and credit cards to people who do not need them. They blindly send them out to kids, dead people, pets, people they know have a bad history of paying bills, people who don't understand the terms, ect... That's irresponsible on their part and taking advantage of people. There is a special place in be nice for people who do that.
0 x
Brimmer Pimpin Ain't Easy

Pretty wide lasso you're swinging there..no one more so than the borrower knows his ability to repay a loan and handle debt. In the end, it is ALWAYS the responsibility and the job of the borrower to handle debt responsibly.
I've never heard one single credit card applicant or borrower say someone held a gun to their heads back in some back room to sign the agreements..not one.

I guess there is something to be said tho, for there being people too stupid to realize they are stupid.

 

[TexasBred]

Banks make money off of commercial credit cards. Not sure about retail or individuals.

Credit card servicing company usually gets those fees that are collected.

Banks sell credit cards to their commercial clients and then get money back via rebates or profit sharing however you want to say it.

Banks make money on your money laying there doing nothing. What they don't lend today they invest tonight.

 

[Dave]

Credit card bill came in the mail today. A little bigger than normal. Three nights in a motel while visiting the kids and that new 22-250 that I thought I needed. Within about 2 hours I dropped a check off in the mail. I know two different people who use CC to buy everything they purchase. Pay it off as soon as the bill comes in. But they have a CC that gives them free airline miles. One has a son in Texas and another in Indiana. She visits them often and never pays for a plane ticket. The other guy has a home and business here and another in Alaska. Flies back and forth regularly for free.

 

[Brute 23]

I'll take your' word on the grandpa/grandson deal. Never seen it myself but do know several banking "families" where several generations have been extremely successful. The guy you describe would probably be a failure at about anything he tried so not the banks fault. Only grandpa's fault for allowing it. Eventually these goofballs will get the bank in big trouble with regulators and cost them a ton of money.
As for credit cards, etc. it is the borrowers that has to be responsible for his own actions. Banks don't make anything off issuring debit or credit cards except a late charge if you pay late and finance charge if you choose to pay it out monthly. As for credit card vs debit card it's as broad as it is long. Neither is a safety net, neither is a savings account, however, I'm more selective where I use my DC as apposed to the credit card. Pay your account in full and you are not paying the bank for anything as there is no charge for either DC or CC. People who are tempted to spend more when they use a credit card simply need to learn some discipline. The bank nor the retailer is twisting their arm however, the retailer will use all his marketing skills he can to entice you to buy whether cash, check or credit...just good business. He don't care how you pay nor how much you spend. His job is to sell. Credit in the hands of a disciplined man can be an awesome tool. In the hands of a fool it can be poison.

It's a fact about the credit card spending. There are plenty of studies out there because people don't see it as spending "their" money.

38% of American have credit card debt. That's an epidemic.

If we go off the... "its their choice" logic why don't we just legalize drugs, why do they cap interest rates... just let people do what they want and fall on their butts.

These banks give loans and credit cards to people who do not need them. They blindly send them out to kids, dead people, pets, people they know have a bad history of paying bills, people who don't understand the terms, ect... That's irresponsible on their part and taking advantage of people. There is a special place in be nice for people who do that.

I'm aware of all that buddy but I betg you would shyt if your banks called and cancelled all your lines of credit, credit cards and debits cards and all you had to operate on was cash only.....your cash.....time would tell and sooner or later the time would come when you would come begging. You may never admit it but you know its true !!!! I don't owe anyone either but I do keep one credit card and I have a debit card and I always will. (I also buy life insurance knowing 100% that I will dam sure die and the wife will probably remarry). :lol2: :lol2:

I wouldn't blink an eye. This country needs a good come to Jesus moment IMO.

 

[TCRanch]

When you buy a truck or some thing they don't even care about you paying cash. They make their money financing it. You have to sign up for a loan and pay it off on the first payment to get all the incentives.[/quote]

So true! Had a fiasco with my '15 F250 diesel and ended up trading it in for the same style but a '16 gasser. The '15 was paid for & Ford actually owed us money on the trade BUT they needed the financing for their quota plus the additional incentives so we financed and they paid off the '16/new truck before the 1st payment was due. This is what it has come to.

 

[TCRanch]

Credit card bill came in the mail today. A little bigger than normal. Three nights in a motel while visiting the kids and that new 22-250 that I thought I needed. Within about 2 hours I dropped a check off in the mail. I know two different people who use CC to buy everything they purchase. Pay it off as soon as the bill comes in. But they have a CC that gives them free airline miles. One has a son in Texas and another in Indiana. She visits them often and never pays for a plane ticket. The other guy has a home and business here and another in Alaska. Flies back and forth regularly for free.

We use 2 credit cards for most everything - and NEVER revolve the balance, always paid in full. No annual fees. We accumulate points and instead of trading them in for gift cards or actual cash (they'll cut you a check) the balance is applied to the credit card. So we end up with appx $3k a year on 2 cards as a credit. And the reason I absolutely will not trade them in for cash is because that's considered taxable income - you will receive a 1099. If you know how to work the system, credit cards can be an asset.