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

Does Good Credit Even Matter Anymore?

We’ve been discussing how frustrated we are with our inability to work with Chase in any way, shape or form to get a little bit of relief for a condo that we own in Philadelphia.  Despite our consistently being on-time for every payment, Chase has told us that unless we’re default on our loan, there’s nothing they can do to help us.  Funny thing is, we’re only asking for a slight interest rate reduction or an extension of the term to lessen the monthly principle.  We’re not asking to be relieved of our obligation, just some consideration for doing a good job of taking care of our obligation when so many others aren’t or can’t.

How is that even right?  The only ones that they’ll pay attention to are the ones that aren’t paying them at all.  So Chase would rather not stave off a situation, but instead create a new bad one.  Makes no sense to me.

We don’t own the second property because we’re investors – it used to be our primary residence until we moved out of state.  Unfortunately, we didn’t know that when we put it on the market in September of 2006, that the housing bubble was in the midst of starting to burst.  So, we’re not a part of the group that was tagged as “greedy” or people that “got into ARM’s that they couldn’t afford”.

We just believed like every other American did that we would put our house up for sale, people would look at it, someone would love it, and then someone would buy it.  Not the case.

So, here we sit with 2 mortgages and a business that’s taken a huge income hit due to the economy and we’re wondering everyday how we’re going to continue.  We’re wondering if it really matters whether we maintain our good credit anymore?  Is it worth it?  After all, there are plenty of people out there now that are in the same or worse situation.

My guess is that the entire country is going to change as we know it due to necessity.  I guess all we can do is wait and see.

October 26, 2008 Posted by | Finances | , , , , , | 5 Comments