Credit Revolution

A Credit Revolution: Have you made enough or paid enough?

Can you feel it? If you listen carefully, you can hear it. It is in the news, in the mood of the country, and in the pocketbooks of the people. There is a revolution coming. Nothing less than the economy of the country and the ability of the American people to access their ”American Dream” are at stake.

People are justifiably angry that our elected officials saw fit to declare that certain banks and businesses in this country were “too big to fail,” in order to justify the raiding of the national treasury to fund the operations of these banks. Just as infuriating is the fact that the money taken from taxpayers to pay these banks was re-paid with increased interest rates, fees and other charges paid by debtors.

The American people have paid twice for these banks to maintain the ability to prey on the public and now face record deficits for which they will have to sacrifice their hard earned money yet again. What people have started to realize in record numbers is that to live in debt is to be living a lie.see link here!

Five years ago, I would hear people brag about their credit scores as if they were talking about how much they could bench press. A high credit score was a form of prestige and a source of pride.

Someone discussing their strong character would mention their credit score in the same breath with their religious devotion and their education. But, what does a high credit score really mean? Does it mean that you are a better person, or even a better borrower, than someone with a lower credit score? Does it really mean anything more than you incur and pay a lot of debt?

What many are discovering is that while they played by the bank’s rules for years, paying down credit cards, keeping many open accounts, watching their debt to income ratio, etc., the banks will simply change the rules when they need or want more money. Credit card companies needing more cash simply increase interest rates and minimum payments regardless of your precious credit score. If they no longer want you to spend, they can drop your credit limit, thereby affecting your available credit and dropping your score.

Credit scores are nothing more than the gold stars you got as a kid for not wetting the bed. “Here is your high credit score, now be a good little borrower and go get another loan.” I speak every day with people who had exemplary credit before they lost jobs or income.

But, now struggling to make a mortgage payment on a home with negative equity, and dealing with credit card companies that would not reduce interest rates while they were receiving timely payments, but are now willing to accept .30 on the dollar now that the payments stopped, credit scores suddenly seem less prestigious. When you get a mailbox full of credit card offers weeks after filing bankruptcy, it starts to become clear.her latest blog:

Credit Revolution

The banks need you way more than you need them and their credit scoring system. Barack Obama made the remark not too long ago that at some point, you’ve made enough money. What is hilarious about that comment is that he wasn’t talking about himself, or the banks, or anyone receiving TARP funds from the government, he was talking about us. I am not sure we will ever hear how much Obama considers “enough.”

I don’t know if there is a point where you have have made enough money, but I do know this…there is a point, where you have paid enough.

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