No. of Recommendations: 1
<<Credit card companies should offer people who can provide proof of need the ability to purchase necessities like food, medicine, healthcare and the like on plastic as very low, or 0% interest, as long as payments are always made on time. These companies would still benefit by receiving the amount they always do from the merchant, but would just forgo the added interest income. This would not only create goodwill for the companies, it would be a huge boon to those in need.

And why not?

This ploy is already commonly used by credit card companies to suck people into debt. You want to use that to get grandma, too?

<<However, before we're too quick to cluck our tongues and wag our fingers at John Q. Public for being so unFoolish in their debt management, it's important to realize that there are some contributing factors which make it more difficult to cast blame.

According to this latest study, two groups who's debt rose significantly include the low income, and the elderly. The low income consumers are trying to just keep pace in providing for their needs, and it seems they're forced to resort to plastic just to make ends meet. Unlike in earlier decades, these folks are using their credit cards for such purchases as groceries despite the fact that the interest rates (some as high as 29%) will make their financial situation even more dire.

Perhaps grandma should save more or continue working if she doesn't have the money to buy her blood pressure medication. Or she can go into debt and if she hasn't any income that can be garnisheed she can have fun, fun fun, till the banks take her Visa card away.

And they wont be able to collect, because she's judgement proof.

How's that for a deal.

Same deal for low income people, in general.

Seattle Pioneer

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