Ready To Laugh At McCain Family Debt? Not So Fast ...

With news of the McCain family's six-figure credit card debt cropping up today, its not too hard to imagine a little light-hearted chuckling among middle class folks getting a look at the spendthrift habits of elites. As The Hill reported this morning, based on disclosure reports released today, Sen. John McCain and his wife Cindy owe at least $100,000 to American Express, with a "dependent child" also holding a card with a balance between $15,000 and $50,000.

But not all credit card debts are created equal. In fact, according to a prior disclosure form filed in May that was provided to The Huffington Post, a significant amount of the McCains' credit card debt is being held by American Express at an interest rate of zero percent -- making their debt a lot less like the costly credit card pitfalls facing many Americans and a lot more like the big sweetheart loans that can get national political figures in hot water. (Sen. Barack Obama's first choice to head up his vice presidential search committee resigned this week after a controversy emerged over a favorable mortgage he received from Countrywide, a key player in the current housing crisis.)

Zero-percent credit card interest rates are not exclusively for the rich or well-connected, of course. But the most common offers of that kind are often capped at a few-thousand dollars and shed their zero percent rate after six to nine months.

According to the May 15, 2008 disclosure form, though, during 2007 Cindy McCain originated an individual debt of between $250,000 and $500,000 with a zero-percent interest AmEx that was still not paid off by the time of the time of that filing.

[Click here to see page 18 from May disclosure form.]

In other McCain family financial news, Megan McCain -- she of McCainBlogette.com -- has announced she'll be producing a children's picture book about her father. While the publisher, Simon & Schuster, will be donating a portion of the money it makes off the title to the Intrepid Fallen Heroes Fund, a veterans' charity, it appears Megan will not. Perhaps she has a little credit card debt to pay off. But even if that's the case, there's no need to hurry -- the "dependent child" credit card debt listed on McCain's May disclosure form is also being charged at a rate of zero percent.

Comments

[Rehbock]

02:06 PM on 06/15/2008

I find nothing in the MSM reporting this free loan. On the other hand both Johnson and Conrad's getting discount on mortgage is widely reported. That doesn't surprise. But I also found nothing in the other liberal biased websties I regularily visit. The only story I saw at all was, inthin in Raw Story and it merely reported that the McCains had reported a large credit card debt with no mention of interest..
MCCain seeking and continuing to receive a 100% disability for his war injuries is also not receiving attention. When his medical records were briefly exposed instead all that was reported was that he was fit as a (Stradivarious) fiddle.
His wife's drug history, the way he dumped his first wife, his questuonable relationships to blond lobbyist, and his jet setting status as a "kept" man though on occaision raised have also not had "legs".
His dismal academic record, his constant changing of positions, his "senior" moments and his friendships and support from bigots and fanatics are also largely ignored at least by the major news outlets.
No one even seemed to notice that when he appeared at the MLK memorial he had a black center staff member subserviently holding an umbrella over his head. Throughout his speech and as he left the podium he ignored that gentleman's existence.
He won't have to put up a website to squelch false rumors, I guess. The rumors true or false never spread.

[Flick08]

07:23 AM on 06/15/2008

The title of this belies the substance of the content. This is something serious that should be discussed more. If Obama had this situation it would be plastered all over Faux News.

[ebethgay]

08:33 PM on 06/14/2008

This raises my eyebrows for the same reason that Senator Clinton's 2001-2007 income report raised my eyebrows. How does someone that rich have any clue what the middle-class American family is faced with right now? My husband and I are my no means poor, but we've had to really rethink our spending habits and have had cut back on our charitable giving and 503b contributions because of skyrocketing costs and stagnant incomes.

While I understand the fiscal advantage of floating the hundreds of thousands of dollars on the Amex at 0%, how on earth would someone who can afford to do that understand understand the burden of putting $3.85 a gallon of gas into a Dodge Neon, and that it sucks to shop at the SuperWalmart, and that going to the IHOP is now a "nice dinner out"?

It says more to me that Senator Obama and his wife carry no debt and are investing in their children's education and T-notes. Plus it hasn't been that long since they finished paying off college loans. I don't understand why some democrats think the Obama's are elitist and that McCain is a better choice for them.

[curmudgeon3]

05:30 PM on 06/14/2008

Suppose American Express is just eating this cost, or are they passing it on to others who aren't part of the elite?

How do you feel about paying extra on your Amex bill every month to subsidize the McCains?

This has truly become a nation of welfare for the rich.

[libmatters]

01:07 PM on 06/16/2008

What's the quid pro quo? Phil Gramm as Treasury secretary?

[UpstateNY]

05:23 PM on 06/14/2008

I don't have a problem with them using their 0% interest - if I could get it, I would use it as well. BUT I do wonder how people with this level of spending can understand that I am being hurt because my grocery bill is now about $200/month.

It also makes his economic plan more understandable. He's a rich guy who will take care of his family and other rich guys - just like the guy we have in the White House now. Should make everyone very, very scared!

[curmudgeon3]

04:19 PM on 06/14/2008

Challenge to anyone posting on this site...

Try calling your credit card company and ask for the John McCain Special, i.e., $100,000 in charges and/or cash advances on your account INTEREST FREE and then report back to us on the results. If you succeed, I'm sure many others posting on this site would be glad to give them a call as well.

Just imagine if you could borrow $100,000 INTEREST FREE and pay down your home loan, or invest it. The most recent average home mortgage interest rate is pegged at 6.52%, resulting in principal and interest payments for 30 years of $633.38. Wouldn't it be nice if you could pay off that loan with one that is INTEREST FREE. The monthly payments for the interest free loan over a 30-year period: $277.78/month.

How would you like to have $355.60/month to save, invest, pay off bills, and/or fill your gas tanks a couple of extra times per month?

If you are comparing these numbers with normal credit card debt, the difference would be far greater, as credit card rates are typically much higher. And if the INTEREST FREE loan is for $250,000 to $500,000, then multiple the earlier numbers by a factor of 2.5 to 5.

The Republican campaign motto should be -- Socialism for the Elite, Capitalism for Everyone Else.

For average mortagage rates: http://www.interest.com/mortgage/mortgage_rates_home_loans.html

[pcplz]

04:34 PM on 06/15/2008

All three of my credit cards upped their interest to 31% last month.......sigh. I think it is because I am now disabled and therefore an easy target. I have protested this and they say they did it because they can. sigh

[Amalek]

07:52 PM on 06/15/2008

American Express only gives you that deal if you pay off the full balance every month. I doubt they gave McCain a special deal like that.

The real point here is the outrageous spending habits of Cindy. She spends that much money every month?

We thought Nancy Reagan had expensive tastes.

[curmudgeon3]

03:18 AM on 06/16/2008

Please see my earlier posting in response to one by Raven (Posted 11:14 P.M. on 06/13/08).

Since my American Express card account does NOT require payment of the full account balance every month, how do you know that this is the case for Cindy McCain's account?

[rightOfLeft]

01:40 PM on 06/14/2008

Cindy McCain's got a good accountant. Stop the presses!

[scottysbeam]

01:01 PM on 06/14/2008

What's the big deal? if it is at %0 they should take as long as they can to pay it off. In fact if they did rush to pay it off, it would make me question their ability to handle money. I'm sure they have plenty of smart people advising them. This debt actually should be viewed in a favorable light.

[vassyuta]

02:29 PM on 06/14/2008

the big deal, as the post states, is the rationale on which such 0% credit is provided, especially for "dependent children" who are 23 years old.

[CitizenFace]

03:02 PM on 06/14/2008

Let's see YOU try to get a 0% rate from the credit card companies. That's the big deal.

[SamiNJ]

12:58 PM on 06/14/2008

I understand that alot of people get really good rates, in fact - zero percent for a fixed amount of time... My only problem here is that it doesn't seem related to paying off the debt inside a period of time. So it is in fact, the rich (hey we aren't all bad people... har di har har) do get the breaks to which others are not accessible. Thus the rich getting richer etc.
But does anyone know if this special fund of "debt" which I find hard to qualify as debt considering their enormous overall wealth has been used as a tax -write off somehow? Cuz then I have a bigger problem with it. "Debt" you aren't asked to pay back and are charged no interest on having been used to decrease one's assets and pay lower taxes?
Just wundrin.... Obviously the interest wouldn't be used in a tax write-off as there doesn't seem to be any. Lucky bastards. :)
***Seinfeld memory... "Those big corporations write-off everything." "You don't even know what a write-off is do you?" "Do you?" "No I don't." "Well they do. And they're the ones writing it off." :)

[DiegoUK]

12:48 PM on 06/14/2008

This is a MUST READ and shows how McCain's 'charitable donations' are anything BUT!

http://www.dailykos.com/storyonly/2008/6/14/101651/121/418/519263

[OlderBudWeiser]

04:39 PM on 06/14/2008

Wow! Verrry interesting. Must read for sure.

[plooger]

11:12 AM on 06/14/2008

How is this not a bigger story? McCain just this week was criticizing Obama for having someone on his VP vetting team for receiving better-than-market rates from Countrywide Financial. But *this* story is about the candidate himself, John McCain, receiving better-than-market rates for loans possibly doubling the national median house price.

Would that a few Americans struggling with their sub-prime mortgage rates could get the rates and loan amounts that John McCain is receiving from American Express.

Sorry for the unavoidable pun, but... conflict of interest, much?

[Producer1]

10:27 AM on 06/14/2008

Seth:

You're close to the point, but the real question is about the power that the McCains have over companies like American Express. When you're worth 100 million plus dollars your money does an awful lot of talking. Some research needs to be done as to how much stock the McCains own, if any, and also how much of Cindy McCain's customers monthly invoices are paid using American Express. Cindy McCain at any time could say "we don't take American Express anymore". That could be a lot more costly to the company than a little interest, and that's a lot more power than John McCain should be able to wield.

[rudiy]

09:22 AM on 06/14/2008

Let us get real. I am no fan of McCain but this is nothing more than a good business decision. Cindy McCain assets are over $100,000,000.00. This debt is less than .01 percent of her assets. We should all be so fortunate. It is impossible to tell without the facts, but if AMX is holding or managing some assets, this would be a normal negotiated exchange. Just an assumption. Even if not I would not believe McCain was bought off with $25,000 in interest. They could have got a home equity loan and written the interest again earns so the net would be even less than $25,000. This is much to do about nothing.

[Jason357]

01:03 PM on 06/14/2008

People have been known to get far more payoffs with just a free lunch or a few rounds of golf than evelopes stuffed with money. What this article describes is nothing less than a bribe.

[candyc]

06:32 AM on 06/14/2008

These two columns are well worth reading. How DARE the venal repug idiots think "everything is ok"?

http://www.nytimes.com/2008/06/13/us/politics/13check.html?ei=5087&em=&en=1e91530016859ad1&ex=1213588800&adxnnl=1&adxnnlx=1213438665-YpO1IoTE/g8FRBye5oikdg

http://www.nytimes.com/2008/06/14/opinion/14herbert.html?_r=1&ref=opinion&oref=slogin

[candyc]

06:06 AM on 06/14/2008

I'd like to know how McCain voted on that awful bankruptcy bill.
How will the MSM report on this ? Will they continue to allow this old goat to say that the Obamas are "elites"?

[TheRealMacDaddy]

01:05 PM on 06/14/2008

With a profound disagreement to what Rudiy says above, the reason John McCain could vote for that "awful bankruptcy bill", is because as the article reveals, John McCain is not being crushed under the burden on Credit interest. Whether it is on credit cards or whether it is mortgage or business related, HE and HIS ELITE BRETHREN, do not have to worry about it.

They are not the average American and they could care less about us average Americans having to pay or lose everything. As a matter of fact, the people who drown in the sea of Bankruptcy just make these Uber Rich richer. Lose your home, the bank gets it and they don't give you back your equity, car gets repo'ed the bank gets it they in turn sell it back to the dealer for pennies on the dollar for what you owed.

Lose your job in today's America and the buzzards will be circling in a month. We lose more jobs (especially in manufactoring) to overseas every single day. These companies also keep their profits overseas to avoid paying their fair share of taxes. Thus the burden falls on who? The average American...not John and Cindy McCain, who will enjoy an even bigger cut in taxes should McCain get elected.

It is a time for a CLASS WAR...and OUR BULLETS ARE OUR VOTES.

[CrystalJim]

12:30 PM on 06/15/2008

The MSM has wanted McCain as their candidate all along, as he is the easiest to control. Therefore they will say nothing negative about him.