Credit Card Interest Rates

One of the interesting news stories of the past few days is the number of credit card companies that are raising their interest rates, for everyone, good customer, bad customer doesn't matter.

Needless to say, a lot of people are upset with these increases, some as much as 100%. A spokesperson for one of the banks involved, who received bailout money, stated the purpose for the higher interest rates is so the bank will have the money to pay back the government quicker. So the tax payer is being asked to provide the bank the bailout money and then, through high interest rates, pay back their tax money to the government.

I'm confused? How is the bank showing responsibility and new practices if all they are doing is placing the burden on the very folks who bailed them out? I am not reading about the reduction of executive salaries or bonuses in any of these banks. I definitely have not read where loans are being easier to obtain for those who have passed background checks and provided proof of income.

Once again, you have to wonder just what conditions (or lack of conditions) Congress attached to the bailout money. I know that Congress is going to start hearings into the matter. I will be writing to my reps shortly and sharing the letter with you. It will be interesting to see their response, and who they try and blame. Because we know Congress will be innocent. They are just naive and trusting, especially when it comes to our money.

It is time to keep after Congress so they will rein in the banks, or we will find ourselves in another financial crisis in a couple of years and China will not be there to bail us out. (Of course in a couple of years China will probably own the country, so there will be no concerns - except maybe our human rights.)

Speak out and let Congress know what you think. Get rid of high interest credit cards. Try and consolidate to one or two low interest cards and let the banks know why or why not you want to do business with them.

Be vocal, be loud, stand up for your rights.

Its Common Sense!!