Do banks offer you a over draft and your credit card people up your limit when you are already struggling and why do they think a loan is the answer!
2006-09-14 10:24:18 · 13 answers · asked by Wim 2 in Business & Finance ➔ Personal Finance
Because if you say yes like people are tempted to do they get a lot more interest from you and get rich as you get poorer!
2006-09-14 10:26:48 · answer #1 · answered by Gone fishin' 7 · 0⤊ 0⤋
If able to use it properly to pay off some debt, a loan, I think is a great idea. Instead of making 3 or more pesky small payments on credit cards, you can make 1 payment to a bank and not have to worry about the credit cards anymore. Credit card companies don't know that you're in debt on all these other things. All they can see is what you owe them, so they raise or lower your limit according to your payment terms, as far as if they're made on time, made on a consecutive basis, etc.
2006-09-14 18:02:44 · answer #2 · answered by TxCatLuvr 3 · 0⤊ 0⤋
This is America, home of the brave and land of profit! Like all businesses, the banks and credit card companies want profit. They know that a portion of their customers will default but they see that as a "cost of doing business." They know that they will still make a profit on the other customers.
A loan is the answer ONLY when you can afford it, are disciplined and avoid additional debt.
2006-09-14 17:33:43 · answer #3 · answered by ssbn598 5 · 0⤊ 0⤋
Yep, banks consider the rewards of keeping you in debt to be more profitable than the chance of you declaring bankruptcy. Careful...
2006-09-14 17:27:19 · answer #4 · answered by Tristansdad 3 · 0⤊ 0⤋
because you are not smart enough to get out of debt. until you how to make your money work for you, you will always be in debt, and the banks will love you for it.
2006-09-14 17:37:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Banks make money by loaning out money.
That's how to be so profitable by charging your interests.
2006-09-14 17:26:04 · answer #6 · answered by Just_curious 4 · 0⤊ 0⤋
lol it's that people think it will be better tomorrow. they can't see past the high interest rate to realise that they are in control of their financial future. they think if the bank says you can have a 40,000 car then they can afford it.
2006-09-14 17:26:45 · answer #7 · answered by notyours 5 · 0⤊ 0⤋
they want to make more $$ off of you. in their analysis you are the best type of customer, in debt, willing to have debt and pay fees. turn the offers down. it is all a vicious cycle
2006-09-14 17:27:00 · answer #8 · answered by Kissingbythesea 3 · 0⤊ 0⤋
If you can make the monthly payments, any lender/creditor will give the money. Just be careful and plan for times when you might be short.
2006-09-14 18:00:35 · answer #9 · answered by Solutions 2 · 0⤊ 0⤋
Once you go all cash, they get even nastier!
You make them money every time you buy something with their card and they will systematically give you a "carrot" to make you buy more.
Dave Ramsey's Finance Class saved my life!
2006-09-14 17:29:50 · answer #10 · answered by Denise W 6 · 0⤊ 0⤋