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!!

New Direction for Bailout

Yesterday we learned that the bailout is going to change course and go in a new direction. Rather than buying up risky mortgages, to supposedly open up the banks funds, now the money is going to go directly to banks for them to start lending. That's right, the government's plan is to make money available for us to take out loans, get credit cards and go deeper in debt.

Where do they come up with these plans?

The country got in the current crisis due to poor lending practices, now the government is going to provide the money for the banks to do it all over again. Why save these banks? They screwed up and should pay for their greed. Better to support some small and up coming banks that just might have learned a lesson and will follow follow good business practices.

The same is true for GM, Ford and Chrysler. They insisted in putting out the gas guzzling SUVS and pickups and are paying the price. They should pay the price, not me. As I have said, no money to them without very careful controls.

Of course I thought there was going to all kinds of oversight with the bailout, but that doesn't seem to be working. Why isn't Congress all over this protecting our money? I haven't heard anyone say the Treasury Secretary shouldn't change the rules of the game in mid-field.

Even with plus numbers for the stock market today, they do not really foretell a positive change, they rather show greed once again raising its head.

Be careful with your money, any deal that sounds too good to be true is.

Keep an eye on the D.C. gang and let them know when you KNOW they are wrong.

Its Common Sense!