Credit Cards – the new indentured servitude

The biggest sham of this bank bailout, is that banks are making a killing on credit cards. Obviously, most people don’t know how banks make money than the mafia from a single piece of plastic.  They charge merchants a high fee (for the convenience, with all types of tricky contracts …let’s just say 2.5% off the top.  They charge you the customer a nice interest 12% if you are always on time, 25% or more if you where late one payment.  On top of the interest, they charge you $25-30 for late fees.  Their scam is that you pay the minimum but not enough debt where you file bankruptcy.  Their target markets are people that will be good wage earners, people who have a consistent paying record (credit score) and people with a lot to lose (business, homeowners).  Nothing they do is fair, the can change the conditions on a whim, and the biggest sham is how a bank says they can’t give you a line of credit but they can start you off with a credit card.  CASH IS KING, hopefully the public will fight back, with paying off their debts, bank with a local credit union or local bank and stay of the credit card crack.  Wall Street may have led down a dark road, DC and politicos opened the door, but I and a lot of American’s lighted the fire with line of credit and credit card debt.  If you have to ask the price and can’t pay in cash … you can’t afford it.

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