The US Senate wants you to be in debt

The United States Senate Banking Committee wants to discourage people who are financially responsible. If that sounds inflammatory, perhaps it is. But that’s the bottom line of the latest foolishness that our government is discussing. Basically, the Senate Banking Committee feels that people who pay off their credit card statements in full every month should pay an annual fee to the issuing bank. After all, they are, in effect, getting an ‘interest free loan’ for a month. The concept is that if the ‘deadbeats’ who pay their bills in full will help contribute to the bank’s well being, then the bank can lower rates and fees for those who carry a revolving balance.

Now let’s step out of fairy-tale land for a moment. The Senate wants to penalize ME, because I pay all my bills on time, and in full. I am financially responsible, so I should pay a penalty. Perhaps the Senate should also instate an ‘early payment’ fee, since I pay my bills before the due date. After all, banks only made a record 17.1 Billion dollars last year in penalty fees – how do they survive? Oh, wait, they collect between 2 and 3 percent of each transaction that I make with my card. Even at just $2,000 per month in credit card spending, that’s $60 per month they make off of me. Over the course of the year, banks make an astonishing $720 from me. That’s without my paying a dime of interest, fees, or penalties.

Ok, so let’s say that the Senate does institute this ridiculous policy. I now have to pay an annual fee on my credit cards that I don’t have revolving balances on ( all of them ). Does anyone really, truly, believe that the banks will actually REDUCE fees and rates for the poor saps who carry a revolving balance? Really? All it would amount to is more money for the banks, who already collected over $15 Billion MORE in fees than they did 10 years ago. Is this really the right direction to go – put more money in the bank’s pockets?

I went 100% credit card years ago, and I don’t want to go back. But if an annual fee is forced upon me because I am financially responsible, I will go back to 100% cash and check. Yes checks, those things we all despise, because they are slow and archaic. I will not pay an annual fee because I pay my bills on time. To even suggest such a thing borders on insanity.

Source CNN Money, Via Blueprint for Financial Prosperity.

1 Comment

  1. Trishia Johnson said

    March 6 2008 @ 7:29 pm

    The Government may not have gone through with the credit card fee noted in this article but they have once again patted financially irresponsible people on the back at my expense. I pay my bills on time, live within my means and drive a 1991 Ford Escort. And I will soon be paying higher taxes on everything to bail out those people that are loosing their homes since they can’t or won’t THINK before they buy a house that is more than they can afford. WHEN will people be told they must be responsible for their actions. Let them loose their homes – learn to live within your means, save and THEN buy a home. If the government does give these idiots a bail out or rebate then I expect to get the same amount given to me to reduce my mortgage or it looks like discrimination to me. Any lawyers out there want to do a class action suit for those of us who pay our bills on time and get nothing but more taxes heaped on us?

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