35 years ago, it was actually quite common to pay an annual fee for a credit card. In the 1980's, the annual fees started to disappear, but interest rates and other penalties started to go up. More recently, just about every credit card company started to offer rebates or merchandise coupons to their customers and the interest rates and penalties went up some more. For people like me who pay their credit card bills on time every month, using credit has actually become cheaper than using cash. For people who can't pay their credit card bills by their due date and end up taking out, in effect, a high interest rate loan, credit cards have become a financial killer.

If you have outstanding credit card debt, may I suggest that you not buy any holiday gifts for anyone on your list this year. Write them a note or just tell them that you can't afford to keep buying things and that you are trying to get your financial house in order. Perhaps you could offer them a gift of you time instead: 2 hours of gardening help or 3 hours of babysitting. I doubt that they will love you any less.

Discover's the WORST. And on top of it all they insult us with that 1% Cash Back bullshit. Ever stopped to think about 1% Cash Back? And it's only delivered when that 1% reaches $25. So... you'd have to charge $2500 just to get $25 back. Wow! What a fucking bargain?

Everyone with out-of-control credit card debt (UNsecured debt, people!) should file bankruptcy all at once. THAT would be delicious. THEN... we should all go to Congress and haul them out the corporate-owned fuckers who have sold out this country and its citizens for far too long... and we should LOP OFF THEIR FUCKING HEADS!

Scissors, four dollars...

The biggest "abuse" by credit card companies is one that was authorized by law. The politicians passed laws saying that the credit card companies should be exempt from the usury laws.

If I loan money to someone, I can only charge a certain percentage of interest per year -- around 10%. But the credit card companies pay so much money in bribes to the politicians that the politicians vote a special exemption for them so that they can charge however much interest they want. Someone recently suggested "restricting" them to 30%, but the Democrats refused to even support that law.

If Congress wants to do something, make the credit card companies subject to the usury laws just like the rest of us.

Another "abuse" is that they always make the payment due date at a time when it is most likely people will be "late," so they can charge another $50 late fee. For example, if the due date is the 27th of the month, or the 12th of the month, they know most people wait to get their paycheck of the 15th or 30th, and by the time the check is received (across country to a payment center as far away as possible) it likely will be late.

Please, Congress, give me a break. This show trials are worthless. Parading poor people in there and suggesting you will "save" them by requiring the credit card companies to send a notice before the jack the interest up to 50%. What a waste of time. If you want to do something, then do it.

Hey Congress, your the same pricks who made all this possible. Remember your bankruptcy law you passed a few years back? And you under the table deals with lenders and banks too?

this, like most investigations by congress are money fishing campaigns. They have hearings to see who will offer the highest bid to make it all go away. How much will you contribute to a certain campaign Mr. Banker??

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"Levin is holding out the club of possible legislation to spur voluntary changes by the industry."

This has never worked with the banks. They are profit driven and don't care. You have to have legislate and craft laws to protect consumers. Why should the credit issuers be allowed to change the agreement and not the borrower? It's like the mob.

Remember it was congress that passed these new credit card laws recently that gave them more latitude to stick it to the consumer. And it's not just the Republicans ... many key Democrats made sure the bill went through as well.

Our government is corrupt folks. Very few officials are not working for big business. I say the whole town is rotten and diseased.
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Using a credit card is like playing with a rattlesnake, you're going to get bite its just a matter of when. I hope Congress acts to rein in the many abuses but I suspect Bush will veto any bill with real teeth.

Why is " abusive" in quotes ? The laws are written so the Credit Card companies can raise rates whenever they feel like it and some charge up to 30 % interest. As Woody Guthrie said, " Some men rob you with a gun, some do it with a fountain pen." Bank of America had the gaul to say raising rates was GOOD for you. Forget the quotes. They ARE abusive.

A debit card works just as well and doesn't cost nearly as much. You can use them almost anywhere and you know how much you can spend because you put the money on the card yourself. It's called taking responsibility for your actions. It's something the credit card companies don't want you to do. They don't want you to be responsible to anyone but them.

There is simply no way that an interest rate of 30 percent is justifiable by the core expenses and risks. If anybody is THAT risky they shouldn't be extended credit in the first place. The banks are simply PRESUMING at that point that the person is going to end up in bankruptcy and are just pushing them there as fast as possible and angling to have the largest possible claim when they do.

I don't use credit cards but if I did, it would only be through a credit union I belong to, or USAA.
All these "well known" co's that flood our mailboxes full of offers and have tons of advertising on TV are not to be trusted.

Having said that, people need to stop and think before they get any credit card. You really CAN live without one! Have money in a savings account . Have a steady income. Spend only what you can pay off when the bill arrives. Live below or at least within your means. You don't need to decorate your home with a bunch of crap from China! Start a plant club and exchange clippings. Buy decorative planters at yard sales. Get free things on Craigs! Plants are healthy for your home and make wonderful decor! Get free or low cost
old wooden furniture and refinsh it. There is
non toxic stripper available now which makes the whole process easy.

Debt is very stressful!
Don't be a sucker with these credit cards. Live simply and debt free as much as possible. You will be a lot happier in the long run.

I agree about the documentary Maxed Out. In Debt We Trust is another good documentary.

Well then DON'T USE CREDIT CARDS.

Jesus - now we have to baby people who had to have the big screen tv but couldn't understand what an interest rate is...

I don't recall anyone every having a gun put to their head and being forced to sign up for and then use a credit card.

Why now? This has been going on for about eight years.

And sorry fellas, "scrutiny" don't mean squat. Call me when you got a law on the books.

Back when the first presnut Bush almost bankrupted me I always paid my Sears charge card on time, but that was not good enough for them. They cancelled it because my credit rating was bad. Fifteen years of on-time payments and they shut me out. Sears and Discover Card can go pound salt, never again.

Talk is cheap, do something about it and then I'll care.