Maxxed Out

[Siji]

Kind of like Super Size Me mixed with SiCKO, but for credit cards and credit companies.

Worth a rental or download.

http://www.imdb.com/title/tt0762117/

[Deward]

Saw this a week or so ago. It should be required viewing for any incoming college freshman. I knew most of the stuff already but there were a few things that I didn't realize fully before.

This documentary describes how the credit card companies target poor people for credit. It is in teh credit card companies best interest to have people default on their credit cards. Federal Law states that the credit card companies can continue to tack on late-fees and overdrafts for 180 days. The companies then write the whole account off as a tax write-off. i.e. if you stopped paying on your $1000 credit limit card, by the end of 6 months that account could have ballooned to $2000 or more, mostly in late fees. The credit card company can then write off $2000 off their taxes. That is why they target the college kids so much more heavily now. They know they can push them into huge amounts of debt. How many of you can remember ever learnign anything about credit cards in high school? I certainly did not.

[Winnow]

Won't go over all this again, but teaching kids about credit cards and finance before they leave High School is way overdue.

[Aslanna]

While I feel bad for those people who had no other choice but to borrow heavily, such as for health reasons or losing their job, I just don't have any sympathy for those who rack up huge amounts of debt just because they can't stop buying shit. I fail to see how banks "push" anyone into debt. So you have 10 credit cards big deal. It's still YOUR decision to use them or not. Take some responsibility and stop blaming everyone else for your financial troubles.

Having said that I do feel the fees and interest rates they start charging on overdue payments, especially when they 'misplace' your payment so that it is late, to be obscene and there really should be some sort of cap put on that kind of thing. Jacking interest rates to 30%+ because of a late payment should be a criminal offense.

[Siji]

When you're college age you don't have a grasp on what financial responsibility really means. All you know is that you can whip out a piece of plastic and pay for the next keg or a nice plasma TV. Hell, even if you know better than that you may not realize (due to lack of experience) that eating everyday on a credit card adds up pretty quickly.

That's what the credit card companies count on.

[Hesten]

I dont really see how people can be stupid enough to get into huge debt, college students or not.
I can understand how for example students can get in dobt because they dont have much of a choice while studying, but if idiots in college go on a spending spree and get in debt due to that its their own damn fault, and i dont think its fair to blame, banks, CC companies, or anything but the person in question for that.

That being said, the CC companies ARE greedy and use all tricks they can to maximize their profits by making people get in debt, but its still the individuals choice for that to happen.

[Aslanna]

When you're college age you don't have a grasp on what financial responsibility really means. All you know is that you can whip out a piece of plastic and pay for the next keg or a nice plasma TV. Hell, even if you know better than that you may not realize (due to lack of experience) that eating everyday on a credit card adds up pretty quickly.

That's what the credit card companies count on.

I disagree. I had plenty of idea what financial responsibility meant at college age. Long before that really. Perhaps that's because I came from a large family and was used not not getting what everything I wanted and knew the value of a dollar! Ok now I'm starting to sound like an old fogey. But honestly the best place to learn financial responsibility is from your parents. And at an early age.

If someone had parents that don't really pay attention to them and buy whatever they ask for then chances are those individuals would end up in debt before they figure out they can't have everything they want. That's no fault of the banks though.The credit terms are clearly displayed on every application you fill out. Interest rates, late fees, default rates, etc. so nothing should come as a surprise. However I doubt many people bother to actually read that information.

[Siji]

Original point - good movie for rental or download.