Comments on: “Feel Free” Courtesy of Your Credit Card http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/ Our Journey to a Debt-Free Life Tue, 16 Mar 2010 18:21:33 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Sheri http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/comment-page-1/#comment-26363 Sheri Wed, 07 Mar 2007 14:47:29 +0000 http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/#comment-26363 Citigroup made the national news this morning regarding doing away with the "universal default." Citigroup made the national news this morning regarding doing away with the “universal default.”

]]> By: michael http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/comment-page-1/#comment-26131 michael Mon, 05 Mar 2007 20:51:39 +0000 http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/#comment-26131 Three comments. 1. Read Elizabeth Warren's book. 2. If you borrow 10,000 on a credit card at the regular going rates, and make the minimum monthly payment specified, it will take an average of 27 years to repay the debt. Do you really think the card companies actually want the debt repaid? Which brings me to ... 3. Credit card companies originate debt, package it up, and re-sell it via securitization to special purpose vehicles that depend on the debts in sold to them NOT being repaid -- because they are buying a stream of income. That stream is only enhanced if it goes into distress, because of the additional income from late fees and default interest. To boot, the same CC company that sold the debt to the SPE also manages the debt for a fee, so they monetize the debt package up front, and make fees on it on the back. Now, if that doesn't make all of us using credit cards feel like mullets, I don't know what will ... Three comments. 1. Read Elizabeth Warren’s book. 2. If you borrow 10,000 on a credit card at the regular going rates, and make the minimum monthly payment specified, it will take an average of 27 years to repay the debt. Do you really think the card companies actually want the debt repaid? Which brings me to … 3. Credit card companies originate debt, package it up, and re-sell it via securitization to special purpose vehicles that depend on the debts in sold to them NOT being repaid — because they are buying a stream of income. That stream is only enhanced if it goes into distress, because of the additional income from late fees and default interest. To boot, the same CC company that sold the debt to the SPE also manages the debt for a fee, so they monetize the debt package up front, and make fees on it on the back.

Now, if that doesn’t make all of us using credit cards feel like mullets, I don’t know what will …

]]> By: Debt Be Gone http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/comment-page-1/#comment-26107 Debt Be Gone Mon, 05 Mar 2007 14:36:50 +0000 http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/#comment-26107 My husband actually just came across an old Best Buy card statement (that card is closed and paid off, thank goodness!) that says, "here's a card to use just for fun!" Riiiiight. My husband actually just came across an old Best Buy card statement (that card is closed and paid off, thank goodness!) that says, “here’s a card to use just for fun!”

Riiiiight.

]]> By: Dr. Jim Claunch http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/comment-page-1/#comment-26096 Dr. Jim Claunch Mon, 05 Mar 2007 13:41:54 +0000 http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/#comment-26096 I recommend Harvard Law Professor Elizabeth Warren's book The Two Income trap which shows that now one family in seven with children has a bankruptcy. Perhaps we can help you are some others who are victims of the credit card industry. Our company Gulfstream Financial is the nation's only professional financial liablity portfolio management corporation. We are not a debt consolidation service nor are we a debt counseling service. With a customized plan for each family we help our clients to be free of all creditor obligations in seven to ten years including their mortgage without increasing their bills, without harming their credit and without asking any net money out of pocket to enroll. Our clients must have $22K in consumer debt over and above their mortgage,have a 600 credit score , own a site built home or have the ability to get a new mortgage and have a job or retirement income. We can not help everyone. I recommend Harvard Law Professor Elizabeth Warren’s book The Two Income trap which shows that now one family in seven with children has a bankruptcy. Perhaps we can help you are some others who are victims of the credit card industry. Our company Gulfstream Financial is the nation’s only professional financial liablity portfolio management corporation. We are not a debt consolidation service nor are we a debt counseling service. With a customized plan for each family we help our clients to be free of all creditor obligations in seven to ten years including their mortgage without increasing their bills, without harming their credit and without asking any net money out of pocket to enroll. Our clients must have $22K in consumer debt over and above their mortgage,have a 600 credit score , own a site built home or have the ability to get a new mortgage and have a job or retirement income. We can not help everyone.

]]> By: Doug http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/comment-page-1/#comment-26090 Doug Mon, 05 Mar 2007 12:40:51 +0000 http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/#comment-26090 Debt producing traps, be they payday or car title loans, are predatory. There is no national campaign that CSFA or Advance America can promote that changes the fact that these companies are in the business of trapping people into a debt cycle. And high debt is anything but green fields and piece of mind. Debt producing traps, be they payday or car title loans, are predatory. There is no national campaign that CSFA or Advance America can promote that changes the fact that these companies are in the business of trapping people into a debt cycle. And high debt is anything but green fields and piece of mind.

]]> By: Matt http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/comment-page-1/#comment-26089 Matt Mon, 05 Mar 2007 12:18:33 +0000 http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/#comment-26089 Wow, that's a very misleading ad. I really think they should show this guy being all free and happy at first then panicking when he gets his bills and that 18% that he took to 'feel free' is what causes him to have problems for years after. Wow, that’s a very misleading ad. I really think they should show this guy being all free and happy at first then panicking when he gets his bills and that 18% that he took to ‘feel free’ is what causes him to have problems for years after.

]]> By: Tricia http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/comment-page-1/#comment-25812 Tricia Sun, 04 Mar 2007 21:48:37 +0000 http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/#comment-25812 Nerdy - good point! Tim - I'll say one thing, the credit card companies know just what to say get us to want to overspend. You have a good point with paying for those memories 30 years down the road. Nerdy – good point!

Tim – I’ll say one thing, the credit card companies know just what to say get us to want to overspend. You have a good point with paying for those memories 30 years down the road.

]]> By: Tim http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/comment-page-1/#comment-25802 Tim Sun, 04 Mar 2007 21:08:36 +0000 http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/#comment-25802 I'm a sucker for the mastercard ads..."for everything else there is mastercard." charge it and your memories will be with you forever right along with your mastercard credit card bill. Isn't it nice that mastercard wants to assist you in recollecting those fond memories? so there you are having $1 for gellato on spanish steps, $35 flowers, the look on your wife's face as you renew your vows, priceless...skip forward thirty years...you are sitting their remember those fond memories holding your mastercard credit card bill with 30 years of 28% interest. PRICELESS. I’m a sucker for the mastercard ads…”for everything else there is mastercard.” charge it and your memories will be with you forever right along with your mastercard credit card bill. Isn’t it nice that mastercard wants to assist you in recollecting those fond memories? so there you are having $1 for gellato on spanish steps, $35 flowers, the look on your wife’s face as you renew your vows, priceless…skip forward thirty years…you are sitting their remember those fond memories holding your mastercard credit card bill with 30 years of 28% interest. PRICELESS.

]]> By: Nerdy http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/comment-page-1/#comment-25744 Nerdy Sun, 04 Mar 2007 15:47:31 +0000 http://www.bloggingawaydebt.com/2007/03/feel-free-courtesy-of-your-credit-card/#comment-25744 I think they should show a picture of the same man working a second job to pay off his credit card! I think they should show a picture of the same man working a second job to pay off his credit card!

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