1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair
Isaac).
2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% -
30%!
3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.
Record Credit Card Debt v/s Economic
Independence
(June
25th, 2007)
Credit
card companies keep flooding our mailboxes with 4
billion Credit Card offers a year. Banks alone have
made $3 trillion of credit available on their credit
cards. The average American household is $9205 in
credit card debt and spends over $1300 a year in interest
payments.
President George Bush quotes: "American's ideal of freedom fits when Americans'
find the dignity and security of Economic Independence,
instead of labouring on the edge of subsistence."
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Video Review
Stephen Brobeck
(Federation of Consumer Protection)
Banks alone have made $3 trillion
worth of credit available on their credit cards.
Elizabeth Warren
(Harvard Law School)
Consumer lending is an insanely
profitable business.
Budd Hibbs (Consumer
Advocate)
Think about it, $43 if you're late for your payments,
and $43 fee if you are Over the Limit. They want you
to be late!
Comments
jdFleko Comments on June 29th, 2007
If you cannot afford it, do NOT
buy it! One rule of thumb is, if you do not have enough
cash on hand to purchase an item, you therefore cannot
afford it! Get out of that supermarket!
Spencer Comments on June
26th, 2007
We have the same kind of problem
in the UK. Every 2nd commercial you see on television
is about a loan of some sort begging you to borrow
your heart out! I get tons of mails in my mailbox
every week asking me to sign up for all sorts of credit
cards enticing me with the 0% introductory rate. The
average British spends £110 for every £100
made, its crazy!
Credit
card companies keep flooding our mailboxes with 4
billion Credit Card offers a year. Banks alone have
made $3 trillion of credit available on their credit
cards. The average American household is $9205 in
credit card debt and spends over $1300 a year in interest
payments. 
