Credit Cards used to be a popular item for the past two decades. They're fast, easy, and convenient - that is until you get the bill. The economy has been troublesome in these past few years and partially why is the over use of credit [http://badcredit-mortgageloan.com] in our system. It's extremely easy to spend money you don't have when you qualify for credit so easily.
Credit Cards used to be difficult to get, and the potential holder had to have a lot of qualifications in order to obtain one from a bank. The rules were loosened over the years so that anyone used to be able to get a credit card once they turned 18 or were of college age. Even people who have failed to pay their other credit cards are able to get more simply by filling out a form. Spending on these cards has been frivolous and the efforts to resolve the debt have been lukewarm. It doesn't help that the credit card companies were reckless and irresponsible in their issuing of the cards. And the US. Government under the Reagan administration managed to extend the borrowing limit to three times the amount a bank had in its reserves. When the payments are due its difficult who to blame first. The banks and card companies that know their lending out more than they rationally should, or the borrower that knows they're taking out more than they can even pay back.
More sympathy would be given to the companies if they wouldn't start imposing strict fees and percent changes without reasonable notice to their card holders. Thankfully a recent law has changed the way that credit card companies do business. First off credit card issuers are not allowed to scout a college campus or hold campus fairs, luring in students with things like pizza or vouchers. If a college student is interested in a credit card he or she must be 21 to have a card issued to them and must have a parent or guardian present. Most in debt to credit card companies are college students who started too early and didn't know how to budget or be responsible with their funds. Another notable change is that credit card companies have to set higher standards as to who they'll approve. Finally credit companies are forbidden to suddenly raise interest amounts without a sixty day notice and cannot impose unregulated fees. Wow, it looks like the credit industry is finally starting to regain it's balance, and the customer is too
Credit Cards used to be difficult to get, and the potential holder had to have a lot of qualifications in order to obtain one from a bank. The rules were loosened over the years so that anyone used to be able to get a credit card once they turned 18 or were of college age. Even people who have failed to pay their other credit cards are able to get more simply by filling out a form. Spending on these cards has been frivolous and the efforts to resolve the debt have been lukewarm. It doesn't help that the credit card companies were reckless and irresponsible in their issuing of the cards. And the US. Government under the Reagan administration managed to extend the borrowing limit to three times the amount a bank had in its reserves. When the payments are due its difficult who to blame first. The banks and card companies that know their lending out more than they rationally should, or the borrower that knows they're taking out more than they can even pay back.
More sympathy would be given to the companies if they wouldn't start imposing strict fees and percent changes without reasonable notice to their card holders. Thankfully a recent law has changed the way that credit card companies do business. First off credit card issuers are not allowed to scout a college campus or hold campus fairs, luring in students with things like pizza or vouchers. If a college student is interested in a credit card he or she must be 21 to have a card issued to them and must have a parent or guardian present. Most in debt to credit card companies are college students who started too early and didn't know how to budget or be responsible with their funds. Another notable change is that credit card companies have to set higher standards as to who they'll approve. Finally credit companies are forbidden to suddenly raise interest amounts without a sixty day notice and cannot impose unregulated fees. Wow, it looks like the credit industry is finally starting to regain it's balance, and the customer is too
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