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.