Driven To Debt

driven to debtI got into a heated discussion with one of my friends over credit cards. He has concluded that his current financial problems are due to credit card companies and they have driven him to debt. He likes to shout to anyone that will listen that credit card companies are evil and all the things they do to keep people in debt.

He argues that credit card companies charge high interest rates, that they extend more credit to people than they can reasonably pay off and that they don’t explain how their product works which makes them evil. While I do not disagree with his arguments on what credit card companies do (in fact, I would argue that their whole corporate mandate is to try and keep yo


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11 Responses to Driven To Debt

  1. Pingback: Anonymous

  2. Harry says:

    It all starts when you present the card and sign your name.
    No holding a gun at you.
    Self accountability is what it’s all about.

  3. Jason says:

    While I may agree that the credit card companies are taking advantage of their customers to make profit, this doesn’t make them evil. In fact, one could argue that selling you a brand new car when you could get by with a used one or someone selling you a top of the line computer when an older model would work just fine is taking advantage of you too. All of them are simply using the fact that you desire more things than you need to survive to make some money.

    I think most people who blame credit card companies and call them evil simply don’t want to accept the fact that they did not handle their finances responsibly and probably tried to live beyond their means. People who I know that have gotten into debt because of other factors such as medical expenses haven’t blamed the credit card companies for their problems.

  4. makingitbig says:

    It’s always “the man”‘s fault with some people, isn’t it?

  5. Phil says:

    Worse yet, there are a host of individuals taking advantage of people who feel this way. Last week I heard a radio spot several times explaining that “big banking has conspired to put you into debt” and claiming that if you purchase his lessons, you can “beat the debt mafia.” The ad ended saying, “remember, it is NOT your fault.” Unbelievable!

  6. Rick says:

    I’m not sure i remember dave ramsey saying it in those terms.

    He is ALL about personal responsibility but does think credit card companies are evil.

    I’m not sure that “these individuals” are taking advantage of “helping” someone get out of debt and understanding personal responsbility and living within your means.

  7. Flexo says:

    When there’s an educational void, marketing takes advantage of that and fills that void with credit card goodness nonsense. Whose fault is it that your friend had an educational void? There’s no point in arguing or getting into a “heated discussion.” Nothing you will say will change his mind… because the educational void has already been filled. He’s no longer in need of education and he now needs reconditioning in order for him to change his mind.

  8. Super Saver says:

    On the other hand, credit cards are great if you pay them off every month. I get the use the bank’s money for 20 days and get points or rebates.

  9. Retireyoung says:

    It sounds like people who are overweight suing McDonalds.

  10. Ralph says:

    One could even argue that credit card companies are “good”, not “evil” – a bit like Robin Hood, they take from the stupid (who have a balance on the card and pay interest) and give to the smart (who pay the entire balance each month, don’t pay any interest, and get some benefit – eg. rewards pts, miles etc).

  11. Lucille says:

    I just wanted to comment on Super Saver’s remark that “you get to use the bank’s money.” Are you aware that it isn’t the bank’s money, it’s your own money they are lending you on your promise to “pay it back.” And then they get to charge you interest on your own money if you don’t “pay it back” before the month’s over. How’s that for a sweet deal for the banks?! What have they got to lose but the escalating interest they’re allowed to add on to your promise to pay (not on actual funds of theirs) if you stop playing the game? By the way, some people think this is actually an illegal practice.

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