The Devil’s Plaything

Ministers used to denounce credit cards from the pulpit.

According to Kathleen Keest of the Center for Responsible Lending, debt has grown from 80% of disposable income in the early 1980s to over 133% today. What happened?

Dean Starkman of The Columbia Journalism Review attributes it to the fact that the credit card industry “has shifted from a lending and underwriting paradigm to a sales paradigm; penalties, fees and default interest rates that were illegal a generation ago are no longer regrettable outcomes to be avoided but central to the business model.”

The bottom line – you’re not alone. The credit card companies are so intent in growing their profits on a quarterly basis that they keep scheming new ways to keep you in debt.

Together we can fight back, and the time is now. By decreasing our credit card balances, we will not only save money, but also stick it to them where it really hurts. Their wallets!

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2 responses to “The Devil’s Plaything

  1. Dear Credit Brain,
    When I was in college, I signed up for 4 credit cards to help finance my education. Now that I’m out of school and working, I no longer need so many credit cards. Will canceling two or three of these credit cards hurt my credit?

    Thanks Credit Brain…

    -Bjamin

  2. Dear Bjamin,

    First check your credit score. If your score is high (over 725) then it shouldn’t be too detrimental to cancel some of these cards. Keep in mind that your credit to debt ratio is important in determining your credit score… so, if canceling these cards will result in your other cards being constantly maxed out, this act may indeed hurt your score.

    My suggestion would be to keep these open even if they are inactive, unless they charge a monthly fee.

    -cb

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