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6ballsisall
03-24-2006, 05:41 PM
I am watching Oprahs Debt Diet with my wife. (I can't believe I just admitted to watching Oprah, but hey I am home with the flu so what the heck?) There are couples on there with 100k in credit card debt!!! :eek: How do you even do that??? :eek:

M-Funf
03-24-2006, 05:44 PM
It's easy...many, many americans have HUGE amounts of CC debt. First it's paying only the minimum amount due on the CC's because you have more money to spend... :rolleyes: The next step for them is debt consolidation, which is just one larger sum of debt, then they dip into the equity line to pay off the CC debt...

It's a downward spiral that's very difficult to get out from under...

east tx skier
03-24-2006, 05:50 PM
He's right. As part of her job, my wife sees people in this situation all the time.

6ballsisall
03-24-2006, 05:53 PM
I guess :confused: I know Americans are captain consumers ( I being one of them :rolleyes: ) but how would one go about getting that much credit line on their cards??? That just really surprises me

M-Funf
03-24-2006, 06:00 PM
but how would one go about getting that much credit line on their cards???

You kidding? CC companies LOVE to up your credit limit, especially if you're just paying the min. amount due.

I had an MBNA CC from 1988 (just when I gradiaytid from kollige). I used it as my business CC, and normally racked up $10-$25k MONTHLY on the card (paid off monthly). My limit was raised up to around $70k in the mid '90's. In some areas, you could buy a HOUSE for that :eek:

I got rid of the card because they wouldn't waive the yearly fee.

6ballsisall
03-24-2006, 06:06 PM
Guess I am just out of the loop :confused: We get CC offers all the time in the mail but we never open them, shred them and toss them. We have one card which I use for my work, it usually gets about 10-15k on it monthly and paid off, I've had that card for 6 years and they just increased my limit to 20k and thought that was nuts. If CC companies are preying on people who rack up big debts on their cards and pay minimums don't they loose out too? I mean if you spend 10k on your card in a year and pay 2k in payments interest/principal they are still carrying 8k of your note for an unspecified time. Seems risky for the CC companies too or is it just me??

Mag_Red
03-24-2006, 06:20 PM
Guess I am just out of the loop :confused: We get CC offers all the time in the mail but we never open them, shred them and toss them. We have one card which I use for my work, it usually gets about 10-15k on it monthly and paid off, I've had that card for 6 years and they just increased my limit to 20k and thought that was nuts. If CC companies are preying on people who rack up big debts on their cards and pay minimums don't they loose out too? I mean if you spend 10k on your card in a year and pay 2k in payments interest/principal they are still carrying 8k of your note for an unspecified time. Seems risky for the CC companies too or is it just me??Not really considering the interest rates they charge. That's exactly the reason mine is also paid in full each month :headbang:

M-Funf
03-24-2006, 06:39 PM
Seems risky for the CC companies too or is it just me??

Risk = Gain.

PendO
03-24-2006, 06:45 PM
the "risk" for the CC companies was significantly reduced by the recent changes to the bankruptcy code.

jmyers
03-24-2006, 06:46 PM
Alot of people aren't credit smart! They don't understand even if you have alot of credit debt you can always call and have your interest rate lowered at anytime, and tranfering from a high rate card to a lower rate when they run a transfer special will reduce it! I transferred to a 1.9% rate after I told the company I was going to cancel the card! You can also raise your limit on one card to transfer from one to the other! The reason I have some debt is because we have done home improvments and if you are smart playing the card game it can be lower than pulling money from your house equity, that is how the consalidation companies get rich! :twocents:

Workin' 4 Toys
03-24-2006, 07:34 PM
I am watching Oprahs Debt Diet with my wife. (I can't believe I just admitted to watching Oprah, but hey I am home with the flu so what the heck?) There are couples on there with 100k in credit card debt!!! :eek: How do you even do that??? :eek:
Come on up to Chicago, and I'll show you... Would take about 5 minutes on the Magnificent Mile. I hear about it all the time.