Credit Card Debt: Ouch!

[Buck]

"Let me try a few words out on you: "Charge It," "Swipe It" and "Priceless."

You know exactly what I am talking about. We all have credit and debit cards. We all use them, and many of us keep our lives going because of them.

That is, until the bill becomes due.

The sad truth is that we are all complicit in our own economic servitude even if, at bottom, it's not our fault because we live in a consumption society, and don't feel we could live without them.

While many eyes are focusing on the housing meltdown and its hugely negative effect on an economy clearly moving into recession, few are paying attention to the next bubble expected to burst: credit cards. You would never know it by watching those slick VISA card ads on the Olympic TV broadcasts.

Combined with the subprime losses, such a credit card nightmare has the potential, experts say, of bringing down the entire financial system and global economy."

http://www.alternet.org/workplace/94701/credit_card_debt%3A_this_popping_bubble_is_really_ going_to_hurt/

[kawalekm]

I really loved this statement.

"This generation feels that somehow or another they're going to figure out some technological advancement that's going to get them out of their financial troubles and outsmart the market," says Manning, who served as adviser to the documentary In Debt We Trust. "

Just what sort of technological advancement are they talking about. Will we be able to geneticly engineer ourselves out of debt?

But, there are legitmate complaints that can be made by people that are still responsible with money. My bank still tries to find ways to charge me interest even through I pay off my card at the end of the month and have a zero balance! And, they also change the billing date at will and I never know when my account closes for the month till they close it. I end up stop making purchases for several days so they can't claim a purchase was made on a previous billing cycle and try to charge me interest!

[SkooliesRock]

Here's an interesting piece I'd ran across, related to the topic:

How Banks Create Money Out Of Thin Air
http://www.youtube.com/watch?v=oIo7IYVCIXM

[mtwildflower]

My husband and I do not have credit cards. We do have a debit card. I have drilled into my kids the danger of credit cards and the high cost of having them and I have told them over and over again..."If your engine blows or the water pipes burst or you're thinking of selling a kidney....come to me. I am your emergency fund. We'll figure something out!"

So far so good.

But really a serious talk and demostration about the power of compound interest has done a lot to educate them in the world of finance.

[machinemaker]

I heard a figure on the amount of unsecured personal debt that we american have is just over 2 trillion dollars. This is not including secured debt like mortgages, but credit card debt, car loans and such. So what do you think will happen if the economy declines this winter?
kent