12-22-2008, 07:48 AM
Bill in NC wrote:
There is less and less creditors can do about borrowers who are unable or simply unwilling to service their debts.
Most credit card companies are about to find out just what the word "unsecured" means.
Once deregulated cc issuing companies became a big part of the problem. Their impetus over the last decade was to bring as many holders as possible up to the ceiling. To this end they allowed individuals to run up unhealthy balances and then laid traps that brought 5% introductory rates up to 24-32% creating an entire class of indentured debtors who can never realistically get out from under.
If fueling the economy truly mean consumer spending must go on and since most consumer spending is credit based then these predatory practices by the lending industry need to be brought under control. This has to happen immediately to have any chance of heading off an unstoppable spiral.