UnThreaded | Threaded | Whole Thread (26) | Ignore Thread Prev | Next
Author: DGChabino Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308362  
Subject: Re: Bankruptcy- unfoolish way out Date: 5/14/1998 5:52 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
One thing that really bothers me about this discussion is that it seems to be assumed that creditors have no right to compain about bankruptcies when they charge such high interest rates, or when they loan to those with questionable credit.

First of all, do we compain about Coca-Cola having an 80% profit margin? That must seem ungodly next to a meager 18% or so profit margin (about 20% APR) that credit card companies get. In another conrast, credit card companies get an average net margin of about 3% or so on the bottom line. That must make Coca-cola a horrible evil entity with their 20% or bottom line. I don't see anyone trying to put a cap on how much money they can make.

Just in case you're about to make the leap that Coca-cola never casued a consumer to go bankrupt, consider any other example. How about clothes... How about cars... computers... all the things we put on our credit cards. They all have higher profit margins than the margin the credit card company makes. Why does the credit card company get dubbed as the vilin?

Why do we want to punish credit card companies as beng the worst capitalists in the country?

If you want to find ways to help people get off of leaning to heavily on credit, I'm all for that. Let's just not place all the blame on creditors. I would rather focus the discussion on what to do when you find yourself with credit problems.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (26) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement