Humanity Against Bank Of America Informative - Humanity - Credit Card Rate Increases

Review by madconsumer on 2008-02-09
I will fist say, I am a Bank Of America customer. Have been for 10 years, all with zero issues.

As of late, there have been a dozen complaints against Bank Of America for credit card rate increases. If one uses credit cards as a means of daily living, and the balance is extremely high, then yes a rate increase would be significant. The average American has approximately $60k in credit card debt. Some far less, some far more.

The real issues lies in the way humanity lives on their credit cards. They should not be for daily purchases, but for emergencies, one time purchases etc.

Live within your means, not on credit cards, and all this rate increase won't mean a thing. In my 45 years, I have paid upfront for all my purchases. Major ones included.

Keep better account checks and balances, pay cash for items you "need", not want. Wants are not "needs". Life does go on without that fancy Gameboy or new hair style.

Lastly, stop complaining about what is your own fault. Simply live within your means.
Comments:22 Replies - Latest reply on 2008-12-08
Posted by GothicSmurf on 2008-02-09:
I agree with you and don't own a credit card for that reason, but how do you explain people who get fees for paying EARLY? Fees for paying off the balance? Rate hike because payment wasn't posted until 24 hours after the due date? I could go on and on, and sometimes, people have no other choice than to live outside their means, just to survive.
Posted by madconsumer on 2008-02-09:
gothic, you have good points. living without use of credit cards is a life style change.

if people cannot live within theirs means, then they are outside of their level of success.
Posted by Anonymous on 2008-02-09:
Madc, I agree with your statement but must add most people are taught to do this crap at an early age and also by watching too much TV commercials that's how a person gets in this kind of trap in the first place. If we are going to stop this we must teach the children.

Of course there are many other variables to consider the most important being “COMMON SENSE” which there seems to be very little of in this day and age.
Posted by fascismsux on 2008-02-09:
lidman , then why not call it uncommon sense ?
madconsumer-""The average American has approximately $60k in credit card debt. ""-- That figure seems a bit high ? where did you get it ?
Posted by Anonymous on 2008-02-09:
Well fascis, if we taught the children how to use some common sense then they might learn what a scam Credit Cards and banks were in the first place. Then maybe people would wake up and put a stop to this madness!!!

Now would you like jelly with that PB sammie?
Posted by D on 2008-02-09:
I agree with Lidman... "common sense" is in incredibly short supply and the American people are paying the price for it's lack.. We live in an era of
have to have it", not "NEED to have it"
It is a culture wherein we HAVE to HAVE the biggest house, the biggest car, the biggest widen screen TV, the latest electronic toys and the list goes on., all of which we, as a society, insist on putting on "the card"..
Posted by fascismsux on 2008-02-09:
Lidman- CRITICAL THINKING SKILLS ?- great idea man - but there would be dire consequences from such a new dynamic if it were spread too far and wide - The malls would close , the politicians would be indicted , the troops would come home .
There would be chaos( I mean peace) . cant have that can we ?
Posted by Anonymous on 2008-02-09:
I really hate those commercials that show lines moving at a fast pace because everyone is using their credit cards, and then 1 guy steps up to use cash and the whole world has to wait. This is not a message the world should adopt. When you use cards (credit or debit), it's a lot easier to overspend. If you cash, you can only spend what you have and you are much more aware of what you spend. I refuse to put my morning coffee on a card.
Posted by tnchuck100 on 2008-02-09:
Depending on what statistics you want to use the average American has between $3,000 and $9,000 of credit card debt. I found no statistics that got to $60,000.
Posted by Anonymous on 2008-02-09:
fascis, wouldn't it be great to watch?
Posted by D on 2008-02-09:
I wonder how many people with outrageous credit card debt are going to put their tax rebates toward their balances..?
Posted by StraightShooter on 2008-02-09:
In a perfect world everybody would pay for their purchases in full and carry no debt. I wish everyone could, but it will never happen. The average income in this country is so low that many people only survive because of credit and that is sad. It's also what credit companies thrive on. Say you have a couple with 2 kids and a yearly income of about 25K. It doesn't take rocket science to see that they are strapped for cash and here comes mr. creditor with the plastic and unholy interest rates because they know this family will be charging it up. The credit card companies are just preying on an economy that is really screwed up and that I see getting much worse before it gets better. Sure, there are plenty of abusers out there, but there are also plenty of folks trying to get by anyway that they can.

Posted by Principissa on 2008-02-09:
We have one credit card, and it has a 0 balance. It has a 300.00 limit for emergencies only. We've used it 3 times in 9 years. We pay cash for everything simply because it keeps us on our budget. If you only have 200.00 to spend on groceries then that is what you spend, no more. I would never purchase anything if I didn't have the money for it. If I can't afford it, I obviously don't need it. If I want it badly enough I will save up the money for it. Things like bill me later, pay day loans/cash advance companies, rent to own places, and in house financing for things like computers and other electronics give people the false assumption that they can afford things they really can't. They wind up over extending their credit, or worse having to file for bankruptcy because they think that one little piece of plastic gives them the means to, well, live beyond their means. If people would just sit down and say, do I really need to buy this 2,000.00 television, even though I can't afford the payments?
Posted by StraightShooter on 2008-02-09:
In the past I've had a couple credit card companies close my accounts for not using them and carrying no balance. I'm surprised this hasn't happened to you.
Posted by Principissa on 2008-02-09:
Well the last time we used it was last year. And we paid it off. It's through a credit union so the rules there are different than they would be at another company.
Posted by fascismsux on 2008-02-09:
old fart- i read somewhere -I think it was cnn money- some know-it-all was projecting that %25 or so would go directly to paying on a mortgage or some form of debt .But you know that if the govt could exclusively target such ppl as benefactors, they would .
Posted by Tigerone on 2008-02-14:
I accepted a credit card offer because the rate offered was lower than my home equity loan. The highest rate that I currently have is my mortgage, at 4.75 fixed. But B of A is running a scam- offering a promotional rate and then manipulating statement dates and closing dates with the INTENTION of causing a default and an unwarranted increase, late fees, etc. It's a predatory scam, and they need to be called on it.
Posted by S. on 2008-02-14:
I disagree with paying cash for everything. I do just the opposite. I use a credit card whenever possible. I pay them in full when the statement is received. After charging '$X,' I apply for my rebate check. Money in my pocket and no interest charged. Of course, I usually buy only what I *need*--but admit to occasionally splurging on something I *want*. In either case, the statements are paid in full after received. So, maybe that means PBJ sammies for lunch at times, but I like PBJ sammies!
Posted by Principissa on 2008-02-14:
I agree Ponie. If we don't have the cash to pay off the balance in full, then we clearly cannot afford to buy whatever it is we are purchasing. We have a credit card we hardly use, specifically for emergencies only. Everything else gets paid through our checking account. It makes us live within our means. The only thing we pay cash for is groceries and silly things like a soda from the gas station or a pack of gum. I see no reason to put 1.59 on a debit or credit card.
Posted by Tigerone on 2008-02-14:
I use the credit cards with good promotional rates because it has a better rate than my mortgage or equity loan. I could pay off all the credit cards with my HELOC and have no CC balances, but that would cost several hundred dollars more each month. But it's true that we, as a culture, are addicted to credit, and the CC companies are taking advantage in the same way that casinos prey on people with gambling addictions. But something must be done about the tactics of lenders. Unilateral changes to the rate and terms of an agreement should be banned, and rates and fees should be capped at something reasonable.
Posted by Circey on 2008-04-07:
Madconsumer - I think you make a good point about people not using credit cards for everyday purchases - groceries for instance. I don't. In fact, I don't use credit cards at all unless there is an emergency. However, I don't like paying rediculously high rates when I do. When I say emergency by the way, I mean things like, the car broke down (again) and I have to have it towed. It would be nice if all of us could live within our means. Unfortunately, not all of us are paid a salary that is comensurate with tax increases and rising costs of fuel--teachers for instance. We also may not have chosen the best mate in our youth and may be stuck with someone who doesn't feel that supporting his children is his first priority. Ummm, yes, again that would be me. I don't have garbage pickup, cable tv, or magazines. My children don't go to the mall, we shop at resale shops, Value Village (look it up if you don't know) and Big Lots. I buy produce at roadside stands and farmers markets when I can. I buy in bulk. I do mend clothes and buy parts for appliances and do my best to fix them myself rather than buy anything new. I do have this 8-year-old computer that we all share so that my kids can pass their classes in school where it is assumed that everyone has one. I do not get government assistance and do not ask for handouts. What I do ask is that I not be robbed by the institutions that I trust to keep safe what little money I do have.
Posted by nobofa on 2008-12-08:
Just because people use credit doesn't mean that all credit users are irresponsible. It is true that Americans are paying for irresponsible credit users at the current time but that is not entirely the fault of Americans,it's also the fault of financial institutions who loaned money to people who could not afford the loans and government who deregulated a financial world and failed to regulate at all innovative measures undertaken by the financial world. I really dislike general blanket statements. Not everyone falls into the categories you have described here. Some people have been responsible, paid their bills, not paid late, not maxed out their cards and not bought everyday necessities with their cards and yet still are being jacked up for interest that should be criminal. Besides that, who is anyone to say what someone should use their credit card for if they are within the acceptable allowances and paying responsibly? That statement opens up a whole other can of worms. I suggest you do some research. I believe you will find as I have there is no methodical or single reason why people have been singled out for higher interest. Congressional investigation even found that to be true. I'd also like to note the number of complaints if far higher than "dozens". It's nationwide and its been thousands every year for the past 3 years.

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