Saturday, July 27, 2013

Fix Unfair Credit Card practices, Fix the U.S. Economy, it really is that simple.


In the United States, the following solutions would solve our economic situation, but they are not being done. 

1. Offer Credit Card Debt Suspension Insurance at reasonable rates of 5 cents to 15 cents per 100 dollars of debt per month. NOT the 99 cents per 100 dollars per month or higher that has been offered in the past.

2. Allow courts to distinguish between involuntary credit card defaults and strategic credit card defaults rather than treat them both as identical. Then, offer repayment plans to involuntary credit card defaulters that don't include ongoing penalties, fees and interest rate charges and that don't perpetually hurt the involuntary credit card defaulter's credit score while they are paying down the default.

3. Reduce everyone's credit card debt by 65% as an acknowledgement that 

  • A. 2% monthly minimum payments entrap consumers into a lifetime of debt. (Department of Justice study confirms this). 
  • B. for overcharging debt suspension insurance premiums by 1000% to 2000% over the past 15 years!

4. Simultaneously raise everyone's monthly minimum payment requirement to 5% of what is due. People will still pay approximately the same amount every month as they were paying with the 2% monthly minimum payment and 65% higher credit card debt, but they will have

  • A. 65% less overall credit card debt, 
  • B. have a higher percentage of what they pay every month to use respend money if they need to, 
  • C. will feel the "shock" of debt quicker when they begin to over borrow, 
  • D. and will have a more realistic opportunity to get out of debt by simply trying.

Banks got a bailout while consumers have been publicly angry because they really didn't get the timely help they needed.

The above ideas solve the issue for everyone without giving the public anything they did not already earn, such as the right to be treated fairly by financial institutions while receiving consumer reparations for past harmful policies.


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Saturday, July 6, 2013

Strategic Credit Card Defaults versus Involuntary Credit Card Defaults, why don't Judges distinguish between the two?

If you are a judge I would love an explanation as to why judges don't make a distinction between a strategic credit card default and an involuntary credit card default. Are the two the same? According to judges, a credit card default is a credit card default.

Do you agree?  

Is someone who runs up a huge credit card tab over a relatively short period of time and then defaults, the same as someone who has has made all of their payments on time for the past 10 years and only had to stop making payments because of a family emergency or a major event in their lives beyond their control?

I am NOT suggesting debt forgiveness either. 

I am talking about the possibility of simply freezing a debt where it stands when the last transaction was made by someone who had an involuntary credit card default. 

If the credit card default was strategic, then treat them the way all credit card defaulters are presently treated.

Do you agree or disagree? ALL intelligent comments are WELCOMED in the comments section.

Hi, Your comments matter greatly. If you post anonymously it helps if you briefly explain how your prior experiences relate to the comment you are leaving. Please no link ads unless you contact me first.