When you or I don't have money, we say we're broke.
When banks don't have money, they say they're "facing a liquidity crisis".
So what are they doing? Well, one quick fix is to raise credit card interest rates.
A lot of people who were paying 8.5% are, as of this month, paying 19%. Someone with a $20,000 balance is going to be paying what - an extra $220 a month in interest? The banks (at least CitiBank) are giving their customers who complain 2 choices - either accept the reaming, or cut up the card, and pay off the balance at the old interest rate
Why? Because most people can't afford to cut up their credit cards.
I can understand going into debt to pay medical bills, because your health comes first. I can also understand going into debt for business reasons, because it makes sense if it will generate more income than it costs. Going into debt to buy consumer goods? Stupid. Makes about as much sense as charging groceries and gas, and taking 3 years to pay them off
Poll Question: Can you afford to cut up your credit cards?
[_] Already did - cash is king!
[_] I kept one
[_] I pay them off in full each month
[_] I "usually" pay them off each month.
[_] As long as I can make the minimum payment, who cares?
[_] I'm charging like crazy - chapter 13 here I come!
[_] I'm doing a SCO - chapter 11 and 7 are my friends.
[_] Someone stole my credit cards, but I didn't report them because they charge less than I do.