Did the credit card company push you into it?

[DeadManCrawling]

I have a (somewhat) perverse fantasy that, one day, everyone who is in over their head will wake up simultaneously and realize the truth.

I believe, if this occurred, that we would see a wave of defaults unlike anything in U.S. history, and that virtually every major credit card company would simultaneously fail.

This may sound harsh, but our country has been bankrupt for a while and (I think) we will have to face the music sooner or later. The sooner the better, so that we can give our kids better prospects.

Such a massive default would likely make America an unpleasant place to live for a while, but ultimately wouuld be for the best.

Who knows, it may be coming anyway.

I find it unconscionable that we would lay this at our childrens feet and indebt them for our mistakes and poor choices, but we have already done so.

[ForumReader]

Yes, I agree, I am seeing that with the way the creditors are practicing their services such as raising fees, interest, lowering credit limits, etc, the greedy credit industry is causing a huge tsumani across USA putting cc consumers in default. That hopefully will be a huge lesson to the credit industry and consumers as well to bring USA to a healthier financial state in the future. Whoever invented the plastic to the average consumer must have been a genius!

[Cheeseater]

I have had the same problems, one limit cut led to another, one rate increase led to another. On 20k of debt this might have been manageable but on 110k it made me wake up. My biggest worry was always keeping my "good" credit rating. And that brings me to what I feel the banks are doing. I feel 90% of people will suck it up and continue to be debt slaves and the banks know it. They are more than wiling to write off 10% for the prospect of raping the 90% for years to come. They are not stupid, most people will kill themselves to pay them, I did it for years. They will make more than ever on fees and high interest rates we are a small minority...for now.

[hamburgervol]

I have had the same problems, one limit cut led to another, one rate increase led to another. On 20k of debt this might have been manageable but on 110k it made me wake up. My biggest worry was always keeping my "good" credit rating. And that brings me to what I feel the banks are doing. I feel 90% of people will suck it up and continue to be debt slaves and the banks know it. They are more than wiling to write off 10% for the prospect of raping the 90% for years to come. They are not stupid, most people will kill themselves to pay them, I did it for years. They will make more than ever on fees and high interest rates we are a small minority...for now.

What's crazy is I know of a couple of people that actually did kill themselves because of debt. I could have helped them if I had known.

[bklawn]

That is the same thing that has happened to me.. I've been looking at this website for about a week now and I love it. All of my credit card companies lowed my credit limit and raised my min payment.. Now it is just like I dont have credit..because all of my balances are at the limits. So I'm looking into filing chapter 13. My wife and I make 150,000yr. with 150,000 unsecured debt.

[want2save]

In July 2010 the banks will be unable to raise interest on existing balance, so they are hitting everyone NOW. I had accounts with 2.99% until paid, and Chase increased my 2% of balance payment to a 5% minimum, plus charging a monthly "transaction" fee. The only way to avoid this was to allow an interest rate hike. Banks starting lowering my credit lines, which were very high, to amount owed over a year ago. Rate increases and payment hikes followed.

Since the real estate market tanked my husband and I have been living on our social security. You can imagine what the credit card companies did to our budget!! Well, they asked for it and they got it, I hope to receive my Chapter 7 discharge in September. All the assets and debts were in my name so I guess my husband's credit will still be good. WE WON"T BE USING IT HOWEVER!!

[StartingOver08]

I have a (somewhat) perverse fantasy that, one day, everyone who is in over their head will wake up simultaneously and realize the truth.

I have the exact same fantasy! LOL

I believe, if this occurred, that we would see a wave of defaults unlike anything in U.S. history, and that virtually every major credit card company would simultaneously fail.

This may sound harsh, but our country has been bankrupt for a while and (I think) we will have to face the music sooner or later. The sooner the better, so that we can give our kids better prospects.

Such a massive default would likely make America an unpleasant place to live for a while, but ultimately wouuld be for the best.

Who knows, it may be coming anyway.

I find it unconscionable that we would lay this at our childrens feet and indebt them for our mistakes and poor choices, but we have already done so.

Maybe this is what our country needs right now. Look at Iceland...remember the entire country was on the verge of bankruptcy last year. http://abcnews.go.com/International/...ory?id=5976627

[thereshope]

I always had excellent credit before my credit crisis. I also experienced the credit card companies increasing my interest rates when I missed my first payment or no payment at all. But the increased interest rates made me become realistic about my situation as it was impossible for me to continue making payments. Some of my payments doubled or went even higher than that. At first I was thinking in terms of keeping my good credit, not seeing the bigger picture. I used my credit mostly to invest in a business while I tried to get a business loan, but my business was in the wrong industry, at least too late in the game.

So yes they helped push me into it.

[crescentmoon]

The credit cards pushed us into it. I lost my job in November, and we were (barely) staying afloat. We borrowed some money from my parents, but we got it just a little bit late, so a Chase card was a few days late in getting paid. That was it for us. Chase raised our rates to 29.99%, and every card after that followed, using that lovely Universal Default Clause. All companies cut out credit lines to just above our balance. Once card cut it so close that when the finance charges posted for that month, we were automatically over the limit, causing even greater fees.

We just couldn't do it anymore. We'll be filing in just a couple of weeks.

KBB

[Billssuck]

We realized we were doomed just before all of this crap with the CC companies started. Only one, Chase, raised our interest rate before we filed.

What woke me up was that we want to retire in 20 years and I got to thinking that there is no way we could retire with 107K in unsecured debt and to keep living like we were. We had maxed out our CCs, sold farm equipment, vehicles, household items, and were just making the minimums on the CCs. So, after puking when doing bills one night, I decided it was time to do something about it and that led us to Consumer Credit, who said we needed to get a lawyer, and then we were advised this was the best option for us.

I am a credit card junky and using credit cards is like selling your soul to the devil...

[killinstinct]

I was already on my way being upside down on my home. However, during the short sale process the interest rate changes and the minimum payment increases by Chase and my other credit cards made it impossible not to file. It was the only way out.

[downsized]

Yep, rising interest and minimum payments got us, too. BK has been a blessing for us. We were still making it with the higher rates and minimums until dh lost his job. Then there was no way. I called every card and asked them if they had any programs...even temporary....to help and not one did that didn't involve a qutomatic withdrawl from my checking acct monthy. No thanks. No one but me and dh will every have access to withdrawls from our acct. So, no dice. Bye to the cc's and hello BK atty!

[andy158]

Yes the cc's were the final push for us into chapter 13. Was a good customer making above min payments, never late and never missed a payment. Credit score was 730. After being rate hiked and interest hiked (some over twice the original terms) I realized it would take about 2.5 lifetimes to pay off the debt. Had several cards canceled because they were not used for 2 years. As the limits were whacked to the current balances, I watched my credit score tank. Lots of lost sleep and taking blood pressure meds for stress for being under the thumb of the cc's and worrying about the stupid FICO thing. No more. Now they are taking payments on MY terms set up through MY attorney! How do you like me now BofA, Chase and all you other legal loan sharks? Thank goodness for bk 13!

[Pizza]

Death by a million slashes, I died that death too.

Very well spoken. Sounds like my situation exactly.

[2manybills]

It was BofA that started with us after having my accounts since 1987 and never being late. After that Citi started and they were all following suit.

Before I knew it, minimums were $3k a month, right. It was out of control and we couldn't continue to rob from peter to pay paul.