War Time Economy
Please join my Credit Card Protest at DAILY-PROTEST.com
I predicted todays economic woes over two years ago, and I predicted it would be the credit card industry that would lead the way.
It actually hurts our entire economy when people are forced to make prolonged interest payments on the same credit card debt. When a consumer has to pay off a credit card bill for an extended period of time and the item that was purchased has either become obsolete or can no longer be effectively used, an indentured situation has been created in which the consumer continues to pay for a product or service that no longer exists!
Many times the news media focuses the majority of their attention towards news stories about physical violence while giving those who commit paper violence a silent pass. Excessive, undisclosed real credit card interest rates are a form of paper violence that is being perpetrated on the american people by the banks. This mathematical treachery has been used to break the spirits of millions of americans.
What is the underlying cause to the current credit card debt problems?
On a surface level it looks like the United States is going through what the U.S. claimed to do to Russia in the 80's, let war undermine the USSR's own economy. Additionally, some entities out there are trying to squeeze the shrinking american middle class by charging credit card interest rates that are basically illegal and lethal.
If a bank has a growing customer base that owes credit card debt that will take 10-20 years to pay off and these customers are about to give up so they can make their mortgage or rent payment, why not convert this growing debtor customer base into a group that pays off their debt in the next 3-5 years with a zero percent interest rate?
What makes the idea of a zero percent interest rate even more logical is the banks will probably be able to collect slightly larger monthly payments than the requested minimum they currently require. Zero Interest paydown is such a logical idea that the primary reason it is not being done is perhaps it has never been tried before.
Some may say that it isn't fair to give some people a break without giving everybody a break. However, as people sort of slip slide away as they lose their way of life, that actually does affect everybody, and not in a good way. On top of that, the idea is ANYBODY who wants to PAY DOWN their debts, should be eligible for some kind of incentive.
Maybe the banks have somehow created stock portfolios that increase in value as more of their own customers fail? Is such a thing possible? Does some elite group want to keep destroying the middle class while simultaneously profiting off the destruction?
If the banks decide to the do the logical thing and offer their indebted customers interest free paydowns rather than writing off the debt, then the answer is the banks do care about the middle class and in essence the banks are taking responsibility for their own overaggressive credit-card interest rates.
If the Banks instead choose to write off existing credit card debt and then simply raise their credit card interest rates on those who are still trying to pay off their own debts, then we can pretty much assume the banks have an ulterior motive that probably includes destroying the middle class.
#### If you agree that the entire credit card industry can be reorganized by simply establishing a total interest paid cap, please email me your support.
#### If you agree that a 50% cap on total interest paid makes sense, please feel free to email me with a supporting quote at firstname.lastname@example.org
#### If you agree that the banks can help minimize the current credit card debt situation by offer a zero interest paydown on existing credit card debt, please let me know.
#### If you are a conservative or liberal, the bible states that usury is wrong. Usury (charging interest) is Wrong.
Please feel free to pass on this link wherever it might be appreciated. Please don't spam it, but if you know of anyone who might be in agreement, lets band together and see how many of us are out there. Thanks in advance.
Interest Charges are TAXES!
All Interest Charges ARE Taxes. Hospital payments made on credit SHOULD NOT have interest charges attached. That alone is a wonderful first step that the government could do while it attempts to deal with healthcare for everybody. The hospitals could get a dollar per dollar deduction off of their gross income for the lost interest payments that were made on credit if it turns out that they presently rely on the interest payments.
Injuries and diseases that result in medical treatments erode savings and cause the loss of wages. Medical treatments should not be an albatross around the neck of americans in the form of ongoing interest payments on the bills that were paid on credit. Charging interest on medical treatments seems unconstitutional to me, or something that should be unconstitutional.
According to congressional hearings conducted on Dec, 04th & 05th, 2007, americans owe 900 billion dollars in credit card debt. But how much of that 900 billion was actually borrowed by the american consumer? I believe that of the claimed 900 billion dollar credit card debt, as much as 1/2 of that debt has actually accrued from bank charges such as interest charges, penalty fees, two cycle billing, interest rate increases and Credit Protector charges..
Think about that for a moment.
If you discovered that 1/2 of the entire credit card debt in this country was based on interest charges, penalty fees, two cycle billing, and Credit Protector, would you then agree that the banking industry has created a never ending credit card interest rate feedback loop in which americans will pay more and more interest on less and less principle? Are americans free-loaders undisciplined at paying off their credit card debts, or are the banks fee loaders who keep upping the credit card interest rate simply because they believe they aren't accountable to anyone else?
Over time credit card charges on a 30 dollar toaster can easily reach 60 dollars in additional interest if the customer only pays the credit card minimum. If the consumer is still paying off the toaster even after the toaster no longer works, the consumer has in essence become enslaved and indentured.
Deceptive, undisclosed credit card interest rates that can be raised at any time is a form of modern day slavery. I think it's time the United States passes a law that caps the total interest a bank or other financial institution can charge on all existing credit card debt. I am proposing that there be a "total interest paid" cap that is directly related to the original amount that was borrowed on credit.
If a consumer has borrowed a thousand dollars on a credit card and pays the requested monthly minimum requirement, how much interest should the consumer ultimately have to pay on that 1,000 dollar credit card loan over the life of that loan? At the Dec. 04 & 05, 2007 congressional hearings on credit card debt, one couple revealed that of the 200 dollars they paid each month against their credit card bill, only 24 dollars actually went to pay down their credit card debt! Meanwhile the other 176 dollars went towards the interest rate payment! That's a 733% credit card interest rate charge!
Yet even at the recent Credit Card hearings Congress accepted the interest rate spin that this particular credit card company was "only" charging a little over 30% interest rate. 30% interest rates that yield monthly 733% interest rate charges clearly show that credit card companies have never disclosed just how much one has to pay per month to actually get the quoted interest rate. The lack of disclosure by the banks over the gigantic credit card interest rate escalation that occurs when one only pays the monthly minimum payment needs to be immediately addressed.
To calculate the real credit card interest rate study how last months credit card payment was split between the interest charges and paying down the principle. Compare these two figures. Divide the amount that went towards the monthly interest payment into the amount that went towards the principle. When dividing these two numbers if the result equals 1 or greater it means one is actually paying more towards interest than the principle, or 100% or more in credit card interest rate charges.
Not disclosing the actual pay off date when customers only pay their monthly minimum due. Additionally, when one pays only the monthly minimum payment the actual interest rate is four to five times higher than the quoted rate. This is another form of non-disclosure. Since non-disclosure has been a primal ingredient in the current credit-card debt issue, banks should allow people to pay off their current debts with no more assessed interest.