Credit Card Industry

Just Because Logix Federal Credit Union Says So Absolutely Doesn’t Mean You Should

Written by Steve Rhode

Most of my writing to protect readers has to do with providing advice about what to avoid when getting out of debt. But an awesome reader sent in this mailer his mother received from her most kind credit union. The kicker is she has not worked in 25 years and lives on a fixed Social Security income.

It’s a great example of my old adage “Just because someone will lend you money doesn’t mean you should take it.”

I do have an issue with offers like this where a credit limit has been increased without the request of the debtor. It would be easy for a struggling person to take joy in the increase and get themselves deeper in a debt hole they have no ability to repay. Especially when the offer is received right before Christmas and the Holidays. You know this unexpected gift will result in unexpected gifts, and debt.

And this is where the moral argument of “I borrowed the money so I have to repay it” falls apart. Yes, you may have used the credit offered to you but this is a two part process. If a lender extends credit to someone who has no capacity to repay it the consumer is not the only one to bear some liability when things don’t work out.

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  • This is where I believe that Credit Unions or banks or lenders of ANY kind need to be held responsible. If a lender knowingly issues additional credit then they should be responsible as it affects all who borrow.
    I have seen a TEACHER get into $210,000 in debt. How will that teacher EVER be able to pay it back. Yet the creditors kept increasing the line and he kept using it. I am not saying what he did is right but using credit can be a bit of an addiction as we know shopping is.
    Financial institutions have a responsibility to the public. People commit suicide over debt problems, that too can be accredited to the financial institutions that extend the credit knowing people may not be able to repay. Like the offers made in the colleges.

    • This situation highlights the student loan problem. For-profit schools have sold overpriced education which consumers bought and the government funded and it leaves the student trapped with everyone pointing the finger at them. In this case if the consumer had run up the credit that was not asked for then people would point at the consumer as the problem child.

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