Citibank just raised my credit rates from under 11 percent to 24.99 percent!. Needless to say, but not happy.
I have my own business. I need credit at times. Yes, it has been a struggling two years now. Banks are tighting. people are going bankrupt and business does suffer some.
I am thinking positive that things will change. After twenty years in business, I have never seen such a disaturous situation for people in general, and small business.
How do you get out of debt without falling into the hands of Lawyers and bankruptsy, with a decling economy?
This world is so set up for failure it is pathetic. Peope work hard, I work hard and to have the banks get bailed out by our government- our tax monies- to go and screw us all is devious and wrong.
You know why Citibank raised your interest rate? Because they can.
The financial system in America is designed to extend credit and punish people when life does not work out absolutely during the repayment period. No financial agreement makes any allowance for accidents, unforeseen events, illness, divorce, etc.
There is no legal way to force creditors to accept a fair and reasonable repayment plan in America other than bankruptcy. Credit counseling programs are only offered at the graciousness and permission of the creditors and they control the terms offered. In America there is no real safety net for people when they get into money troubles. That is just reality. And get this, Citibank does not subsidize most, if any, credit counseling programs. They put people into debt but do nothing to help them get help in times of trouble. Maybe that’s why some call them Shitybank.
There are tools that can be used like debt management, debt settlement and bankruptcy but I suggest them, not because they are perfect at all times, but because that’s all we’ve got to work with.
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But after working hard to help consumers with debt problems all these years I can honestly say that it has been a hopeless case to try to get Washington to change laws to allow people to repay their debts in difficult times in a way they can afford. Bank lobbyists spend millions to persuade Congress to vote the banks way and the last bankruptcy reform act was a classic example. It was a change in the law that was unnecessary and unwanted by us consumer types. It served the banks and gave no new tools to consumers to address their debt. in fact it forced more people into debt slavery.
When I look back over my writings over all these years, now more than ever, I find myself suggesting bankruptcy as a tool to seriously consider to deal with problem debt. And I do that not because I want to screw creditors but because creditors have forced people into such a corner, with no real options to get out of debt, that bankruptcy is a tool worth considering to break free from impossible situations.
Putting the moral implications and discussions aside, if banks can get billions in taxpayer dollars to continue their ridiculous financial assault on the average consumer then why can consumers get a debt bailout with bankruptcy to get themselves regrouped?
Richard, you say that it is devious and wrong and I agree, it is wrong. Probably the last legislation that helped consumers to deal better with their problem debt was the Bankruptcy Reform Act of 1978. And not one single bit of legislation has been passed that has allowed consumers a real shot of breaking their debt situation with reasonable, affordable and sustainable payments.
Even now, when bankruptcy judges are fighting for permission to modify unsustainable mortgages in bankruptcy so people do not get kicked out on the street, lenders are spending millions to lobby against that.
The best hope we’ve had for positive change is the new Obama administration that might actually do what is needed and right, but only time will tell. At least legislation was passed recently, lead by democratic Senator Christopher Dodd, to protect consumers from interest rate hikes, but that won’t kick in for 18 months, and yet my credit card company can raise my interest rate with fifteen days notice. Seems unfair, because it all is.