Originally posted by: Zugzwang152
i can see if they're hurting they need to make some more money...
i'm no businessman, but isn't this juts encouraging people to not spend on their cards?
After seeing what the housing bubble did to banks, all the big boys are now scared shitless of their enormous credit card bubble.
Recall, since people can't use their house as an ATM any more, they'll be turning to credit cards more and more to make ends meet. Eventually they'll default on these loans as well.
The best part is, credit cards are unsecured debt. There's nothing to repossess in a lot of cases. If someone blows their mortgage payments, the bank can at least take back the house and recoup some losses. But if someone defaults on their credit card, how do you repossess that dinner they paid for on credit? That DVD they rented? How do you get that tank of gas back?
It's arguably a more dangerous bubble than housing was.
This country has been running on debt for so long now people have forgotten what actual fiscal responsibility looks like.
My credit line sure as hell won't be changing though. Pay the card off every month, to the penny, well before deadline. Banks used to hate people like me for not paying any interest or fees, which is where their profits come from on CCs, but now they're just thankful I'm not destroying their bottom line like most of suburban America.
