Dreams of plastic…

Or, in this case, nightmares. Analysts are predicting terrible years for credit card companies, or banks that have large credit card divisions. And,  of course, they’re going to try to soften the blow as much as they can by taking that money out of your pocket. Like a villain in a bad slasher movie, they’re coming for you. And they’re going to get you. I recently got a notice in the mail, increasing my 6 % APR to 26% APR–for no reason whatsoever. The best thing you can do is pay down your cards as quickly as possible.

Two other tidbits today. United Technologies is slashing about 12,000 jobs, because it no longer  sees getting their business back as a possibility. And in good news: Netflix has passed the ten million subscriber mark. Except them to do well throughout this recession. Because of that, here’s their jobs page.

3 Comments

  1. What’s so bad about people running their finances on a cash and not credit basis? When I lived in eastern Europe in the 90s, people talked about saving their money for long times before buying something, because consumer credit was not widely available or cheap (skis, a car, a flat). I know credit cards are convenient, and I have one myself.

    But the minute a person puts a new credit card into their wallet, they actually have LESS money and not more money! Instantly. Best case is a card with no fees and no balance. Then, it’s just plastic in your pocket.

    I do think that having a credit card for emergencies is a comforting feeling. But having a savings account of $1000 would make me feel a lot better than having $1000 available credit…

    Just my 2 cents! Let the credit card companies do what they have to do. I don’t want to use them anyway!

  2. This is something I, for the most part, completely agree with. I do have to point out that building good credit without credit cards is difficult, and many employers now look at a person’s credit rating during the hiring process. That said, I think we’re starting to see the errors of our credit-hoarding ways and hopefully we can find a happy medium.

    However, I don’t think credit cards will ever go away. As a country, we’re fairly addicted/dependent, and so asking all Americans to give up their credit cards for the good of the economy is like asking all Americans to give up their cars for the good of the environment: Pointless. Because it’s never going to happen.

  3. Excellent point about responsible use of credit cards being key to a good credit rating. It just seems to be a shame what can happen when credit card debt is high and a person loses their job. From experience I can say that situation is no good for the credit rating either. I guess the point is to have them but treat them with respect!

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