This Post Will Piss You Off

Last night I watched an incredible documentary (thanks Netflix) It was a story that I know all too well. A story that I've watch many in my family live through. I thought I was pretty educated in the shady tactics of credit card companies, lenders, and collection agencies. But I had no idea. I honestly feel now more than ever that where we have Reading, Writing, Arithmetic, (don't forget history) as the age old requirements in school. Fiscal Responsibility should be right up there. Every student starting in middle school should take at least one class a year that teaches smart fiscal responsibility. They need it for so many reasons, the most important being that statistically their parents (who are supposed to teach them how to be responsible with money) are in serious debt. These kids are going to learn about money from their maxed out parents. The vicious cycle is never going to end.

Will that EVER happen? NEVER. Why? Here's the sick and twisted thing that was touched on in the movie. This chaos that's happening in the housing market. The chaos that happening with lenders. These businesses want you to believe that they are hurting just as much as you. These businesses want you to think that they are going under. When in fact business couldn't be better.

Typically for every 1 dollar you spend using their money you almost automatically owe 2 additional dollars in interest, penalties, and what ever other charge they can pull out of their ass. That number only increases as long as you owe them the "dollar".

Here are some juicy little facts:

The credit card industry earned $1,200,000,000,000 last year. That is $1.2 TRILLION in profits.

In 2004 consumers were charged $14.8 BILLION dollars in late fees.

Most credit card companies purposefully delay posting your payment on the day it is received so that they can charge you the late fee. They made millions using this technique last year.

Changing the due date or mailing the bill so that it is difficult at best to meet the deadline and there by charging another late fee. With two late charges on your 'record' your interest rate goes up as much as 10 points. This can be done without notifying you, by the way. These companies have even resorted to not mailing out statements so that you will pay late and therefore be charged at least $29 in late fees and sometimes more.

Signing you up without your permission for credit insurance that virtually never pays out.

Checking your credit reports to see if you are charging on other cards and if it is 'deemed excessive', raising your interest rate by as much as twice your current rate.

Charging you a $25 fee for NOT USING your credit card.

Capital One has been sued because their customers mailed in the checks a full two weeks before the due date but were deemed late, charged the late fee and the interest rate was hiked to double digits.

Citibank paid a $45 million dollar settlement because they improperly assessed late fees and raised the interest rate up to 24% if the customer was late on any payments to other creditors, even if you are current on every payment to them.


This means for most Americans that are "maxed out" they will NEVER get out of debt. As long as they know that you're desperate enough to send in the minimum payment. They will hold onto that debt they will make triple, quadruple, quintuple the amount of credit they extended to you in the first place. And once they've maxed you out and you just can't pay anymore? Why the opportunities are endless!! Some debtors look into foreclosure (they get the money from selling your house, car and other items) They garnish your wages, and some just charge it off. which means they sell your debt to the hounds of hell. Collection agencies. What does this mean? well the A) the collection company PAYS them to take ownership of your debt. and B) The original debtor then gets to write off their "loss" (total amount of money owed by you-intrest, penalties, and all not covered by the payment of the collection agency) when tax season rolls around. Saving them even more money. YAY!!

So why would these companies EVER allow for the American public to learn fiscal responsibility? Why there is a whole generation of kids to earn Trillions more off of? Our Children. They are coming after them next. Want proof? just walk onto any college campus there are hundreds of credit card companies outside dorms handing out cards to students with a stroke of a pen. And the cherry on top?? These companies are in the pockets of everyone who is anyone in Washington. Education would mean the demise of their companies.

The sick and twisted thing people. Is that people are killing themselves over their debt. Millions of Americans when they should be getting ready for a stress free retirement. Are finding themselves with NOTHING. Are finding themselves losing their homes thanks to re-financing. (my parents included). That's what breaks my heart. People are losing everything they've worked their whole lives for. EVERYTHING. And you now have a generation of Americans who are literally drowning in debt before they ever get started in life. The sad thing is that most Americans have no idea how to handle their finances (myself included) There are some who are lucky and figure it out early. For the rest of us there are many things that brought us to our debt. The need for instant gratification or status, Illness, Loss of employment. The list is endless.

It's maddening. Maddening that people are driven to such anxiety because of money and credit. My mother almost completely lost her mind after becoming homeless twice. If I could go back and change one thing in my life. It would be my response when they told me the were going to take a loan out on their home that was a few thousand dollars from being paid off. (And for what? a TV, some christmas presents?, a car?) That for me is where it all began for them. Aside from a rent-a-center (gag) payment. They had no credit cards, no other debt. These companies taking advantage of my parents lack of financial education has caused them insurmountable pain and suffering. When it's all said and done my parents will die roughly $100,000 dollars in debt. These companies are killing us all one way or another. And yet, we take it. And will continue to be at their mercy. It's times like these I realize just how oppressed the majority of American society really is. It's times like these I want to do something very Tyler Durden like.