Swimming In My Head…

diving in the deep end…

Banks raising credit card interest rates?

Unfortunately, I have no humor to pepper into this post because this is just one of those release posts for me.

I read an article about how banks are starting to raise interest rates on some credit cards up into the 30% range.  WTF Becky?  Seriously, I don’t even understand how we get here on some issues.

It’s never made sense to me that banks, based on credit risk, would write up terms on credit that makes it nearly impossible for someone of lesser means to make good on the whole transaction.

It’s like how we’re told that if we tell someone they’re stupid long enough, they start to believe it and in turn act stupid.  We’re setting them up for failure.

So, why oh why are banks raising interest rates on credit cards to 30%?  Do they really think that by making it impossible for someone to catch up that this will help the economy?  Why set them up for failure?  If you make it impossible for someone to pay, they’re going to stop paying and then you won’t get any of your money back.

Seriously…if I choose to deposit money into a savings or checking account in the bank of my choice, the bank uses the money I’ve deposited to invest right?  But, they only give me a 1 – 2% interest rate to use my money.  But let’s say that  they become a bad credit risk (i.e. having to accept bailout money to stay in business), how come I don’t get to walk in there and tell them that I’m increasing the interest rate on them to 10% to shore up any perceived or anticipated losses.

I just think it’s completely ignorant to complain about the downward spiraling economy and then do things that deliberately compromise real opportunities to make it better.

Thanks everybody…I’m done.


December 18, 2008 Posted by | Finances, Life In General, Really? | , , , , | 2 Comments