Banks Are Proving To Be Bad For Consumers

Did you know that Bank of America collected more than 22.4 Billion in fees, which includes penalty and service fees and other non-interest income, in 2006? That is more than half of it's overall revenues! The "sweet spot", as the spokesman for the banking industry put it, is these fees. So when you open a credit card account or even a checking account at a bank, you need to realize this. You will get slapped with unexpected fees. That is how they make their profit these days.

Time to consider changing to non-profit credit unions for all our "banking" needs. They are owned and controlled by the members who open accounts there, and serve the interests of the account holders. Their whole purpose is to provide reasonable rates and a safe environment to keep our money, as opposed to banks who are robbing their accout holders.

Generosity

I've talked a lot up here about the warnings of borrowing money. It is clear that in today's world, it has become a trap. What I have come to learn over the years is that borrowing money is a symptom of wanting things before you can afford them. It is also a symptom of selfishness. We should be helping others in need, not lending money to them at high interest rates, or any interest rate at all.

Materialism is the disease, generosity is the ancdedote. There are people who find themselves in debt due to medical bills. This is the cause for half of bankruptcies. This wouldn't happen if we, as a community, helped those in need. Instead, we are letting these people borrow money to stay afloat, and they fall into the debt trap. Under the new bankruptcy laws they are likely to not be given the opportunity to start over when they cannot afford to pay for a bankruptcy, or fall out of bankruptcy and lose the protection from their creditors due to the unrealistic and unforgiving repayment terms according to the law. What we need to realize is that it is only by the grace of God that we are not in that situation ourselves. Healthcare is expensive, and without very diligent financial planning for emergencies, we are only 30 days away from a downward spiral into the trap. Even then we can't do it alone. We need to learn to help others in need, so when we are in need, someone will help.


1 John 3:17-18
17 If a rich person sees his brother in need, yet closes his heart against his brother, how can he claim that he loves God? 18 My children, our love should not be just words and talk; it must be true love, which shows itself in action.
TEV

This is OUTRAGEOUS!!!

Creditcard companies are targeting children as young as 9 years old now. Look at this new game from Hasbro. This is child abuse!

Elizabeth Warren Talks About the Creditcard Industry

There is an excellent interview on Fresh Air that will give you some pretty shocking information about creditcards. Go here and listen to this interview! Elizabeth Warren is a Law professor at Harvard University, and has done extensive research on Bankruptcy and has advised those in Washington about the bankruptcy laws.

Time to Do Something

I have done a lot of complaining on this blog, but my purpose is to inform. There is no reason to obsess over the injustice. There will always be injustice. So what do you do? The best way to fight back is not to try to change our government policies, our government's ability to make good decisions for the people has dimished significantly due to the influence of money and power, and the apathy of voters. The solution lies with each and every one of us as inidividuals. We vote with our pocketbooks. If we use creditcards and we borrow money in any way shape or form, we vote for the current ways our banking system treats us. If we live on cash, we send a message that we don't need creditcards or loans. As much as we think we do... some of us are discovering we can live much better without them.

If you want to know how to do this, one of the most simple and understandable ways to make this change effectively in your life is just to change your spending behavior. Your behavior changes once you have admitted there is a problem and you know what to do about it. Nothing works better that I have found than Financial Peace University. I get nothing for this referral. I have used the program myself and it has changed my spending behavior, and improved my relationships. Go to the link and check it out.

BofA issuing credit cards to anyone who breaths

Still think credit cards are not abusive by intent? InsideARM.com, a website supporting the collection industry, reports that Bank of America is issuing credit cards to illegal immigrants. Here is a quote from the article:

Quietly, and without much fanfare, Bank of America has implemented a program
offering credit cards to customers without a social security number. This courting of the undocumented isn’t new. In recent years, banks and lending institutions nationwide have offered checking accounts and, at least, once upon a time, before the housing bubble burst, mortgages. What undocumented citizens haven’t been able to do easily, if at all, is procure credit cards. No credit cards mean, usually, limited or no credit history – severely limiting the purchasing power of the undocumented.

The credit cards in this new program at Bank of America start with an interest rate of 21 or 22 percent interest rate. These poor immigrants don't have the sophistication to realize that these interest rates can quickly undermine their ability to provide for their basic needs. Not only is this program abusing the poor, it is seeking to aid people in breaking the immigration laws.