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Account Overdrawn
In response to Account Overdrawn
Readers agree that easy credit has its drawbacks, but can provide
convenience and ready cash when used judiciously. Many have learned
credit lessons the hard way!
- I agree with the majority of your concerns about the ease of credit
availability. I take exception, however, to your suggestion that
extension of credit to certain types of individuals should be made
illegal. Dependent students of majority age and unemployed people
should not go recklessly into hock, but I back away from the idea of
denying them credit per se. In our free society, should the government
legislate who is harmable from credit granting? (Minor children should
never be given credit without parental permission).
I suggest that credit be granted to certain high-risk individuals only
after a two-hour seminar on the rights, responsibilities and effects of
the use of credit (at the applicant's expense). This way, people of
majority age can continue to participate in our society without legal
barriers, while those who may be harmable are educated in the proper use
of this financial tool.
As an aside, I was a dependent student when I got my first MasterCard.
I never experienced the binge effect, nor did I need parental help for
my shopping. It was helpful to have established credit when I graduated
and got my first job.
--- Use Credit Wisely
- I know several people who have recently claimed bankruptcy. One, a
23 year old, was advised by his lawyer to charge as much as he could
before the bankruptcy went through so he could claim those charges,
too. He did so on every account he had. I believe a lot of
bankruptcies are promoted by law firms to generate additional income.
The consumer is unaware of the consequences and becomes a victim of
litigation. Personal bankruptcy, in my opinion, is nothing more than
legalized theft. --- Consumer Beware
- Maybe college children would find a debit card helpful. It works
from their checking accounts, but they can make purchases like a credit
card. The catch is that the money comes immediately from their checking
accounts. --- Try Debit, Not Credit
- Over the years my husband and I have gotten outselves into trouble
with our plastic. It's easy to charge with one card, get in over your
head and use another card to try and bail yourself out. It doesn't
work. We finally paid off all our creditors, cut up the cards and
returned them. Now we have one credit card with a small credit line,
used for emergencies only, and paid in full every month.
Last June one of our daughters had her credit card stolen. She had not
used the card, and the individual who stole it, within a half hour,
charged right up to her limit. When we obtained copies of the store
receipts from the credit card company, we were amazed to notice that he
had used a name nowhere near my daughter's name. Clerks at three
different stores had approved his use of her card. Since we had notifed
the credit card company within an hour of the robbery, my daughter was
not held responsible for the debt, but the stores weren't either. I
believe the stores should be responsible for the debt, because it was
very obvious that someone other than the true cardholder was using the
card.
--- Learning the Hard Way
- For information about ways to get help with credit problems, the ins
and outs of bankruptcy protection, obtaining your credit report and
more, contact the National Foundation for Consumer Credit:
http://www.nfcc.org
--- Get Accredited Help
- One cause of the surge in bankruptcies is the current downsizing of
America. I have a friend who is only 35 and had to file for personal
bankruptcy. She had a history of excellent credit and only a few credit
cards. What happened? She is a single mother and the sole support of
herself and daughter. She had a well-paying job but was laid off and
unable to find a job with similar pay and benefits. Prior to losing her
job, she had major surgery, so it took months before she was able to
look for work. She won't even talk about the bankruptcy to people
because there is so much judgment against persons in her situation.
People automatically think she was a credit junkie and overspent her
credit cards, when nothing could be further from the truth. I sincerely
believe there are more people like my friend than the public realizes.
It's hard enough for them to get back on their feet withour hearing
about how irresponsible they must have been to get there in the first
place. I would love to see just one newspaper article or TV show
consider her situation when they talk about bankruptcies. --- Downsizing
Hurts
In response to Account Overdrawn
Readers agree that easy credit has its drawbacks, but can provide
convenience and ready cash when used judiciously. Many have learned
credit lessons the hard way!
- I agree with the majority of your concerns about the ease of credit
availability. I take exception, however, to your suggestion that
extension of credit to certain types of individuals should be made
illegal. Dependent students of majority age and unemployed people
should not go recklessly into hock, but I back away from the idea of
denying them credit per se. In our free society, should the government
legislate who is harmable from credit granting? (Minor children should
never be given credit without parental permission).
I suggest that credit be granted to certain high-risk individuals only
after a two-hour seminar on the rights, responsibilities and effects of
the use of credit (at the applicant's expense). This way, people of
majority age can continue to participate in our society without legal
barriers, while those who may be harmable are educated in the proper use
of this financial tool.
As an aside, I was a dependent student when I got my first MasterCard.
I never experienced the binge effect, nor did I need parental help for
my shopping. It was helpful to have established credit when I graduated
and got my first job.
--- Use Credit Wisely
- I know several people who have recently claimed bankruptcy. One, a
23 year old, was advised by his lawyer to charge as much as he could
before the bankruptcy went through so he could claim those charges,
too. He did so on every account he had. I believe a lot of
bankruptcies are promoted by law firms to generate additional income.
The consumer is unaware of the consequences and becomes a victim of
litigation. Personal bankruptcy, in my opinion, is nothing more than
legalized theft. --- Consumer Beware
- Maybe college children would find a debit card helpful. It works
from their checking accounts, but they can make purchases like a credit
card. The catch is that the money comes immediately from their checking
accounts. --- Try Debit, Not Credit
- Over the years my husband and I have gotten outselves into trouble
with our plastic. It's easy to charge with one card, get in over your
head and use another card to try and bail yourself out. It doesn't
work. We finally paid off all our creditors, cut up the cards and
returned them. Now we have one credit card with a small credit line,
used for emergencies only, and paid in full every month.
Last June one of our daughters had her credit card stolen. She had not
used the card, and the individual who stole it, within a half hour,
charged right up to her limit. When we obtained copies of the store
receipts from the credit card company, we were amazed to notice that he
had used a name nowhere near my daughter's name. Clerks at three
different stores had approved his use of her card. Since we had notifed
the credit card company within an hour of the robbery, my daughter was
not held responsible for the debt, but the stores weren't either. I
believe the stores should be responsible for the debt, because it was
very obvious that someone other than the true cardholder was using the
card.
--- Learning the Hard Way
- For information about ways to get help with credit problems, the ins
and outs of bankruptcy protection, obtaining your credit report and
more, contact the National Foundation for Consumer Credit:
http://www.nfcc.org
--- Get Accredited Help
- One cause of the surge in bankruptcies is the current downsizing of
America. I have a friend who is only 35 and had to file for personal
bankruptcy. She had a history of excellent credit and only a few credit
cards. What happened? She is a single mother and the sole support of
herself and daughter. She had a well-paying job but was laid off and
unable to find a job with similar pay and benefits. Prior to losing her
job, she had major surgery, so it took months before she was able to
look for work. She won't even talk about the bankruptcy to people
because there is so much judgment against persons in her situation.
People automatically think she was a credit junkie and overspent her
credit cards, when nothing could be further from the truth. I sincerely
believe there are more people like my friend than the public realizes.
It's hard enough for them to get back on their feet withour hearing
about how irresponsible they must have been to get there in the first
place. I would love to see just one newspaper article or TV show
consider her situation when they talk about bankruptcies. --- Downsizing
Hurts
Please send questions or comments to bbruno@snet.net.
Previous columns are available.
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