Why do Credit Card companies allow so many people to get into debt?? People nowadays are using them as if it were there own cash. Then when its too late, they realise they're in big trouble and have borrowed a huge amount that they can't pay back.
2007-01-14 02:52:41 · 10 answers · asked by S 4 in Business & Finance ➔ Credit
P.S. I am not talking about myself by the way. I have NEVER had a credit card and NEVER will.
2007-01-14 03:13:30 · update #1
to make money but there should be a cap on the amount you can borrow altogether.
2007-01-14 03:01:43 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Many people don't understand how interest works. ( But those credit card companies sure do !!!)They also don't know that with many credit companies, that interest can be negotiated. Maybe our schools... and certainly parents.. should do a better job of explaining to young people the importance of paying off that balance each month. If not, they are giving a big " tip" to the company. To have credit card debt means a bad credit history, and that's a dark hole to try to climb out of.
2007-01-14 03:06:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The credit card companies will eventually get their money, unless the person declares bankruptcy. Unfortunately at no point in schooling do we teach people how to look after their money. Sometimes it is a spouse that gets a family in debt and then walks away as well, so it really isn't the person's fault. Unfortunately as long as the credit card companies are still making money they aren't going to care about how poorly some people manage their money. You just have to use your head and take responsibility for yourself.
2007-01-14 03:07:37 · answer #3 · answered by Wendi lu who 4 · 0⤊ 0⤋
Because the companies know that in the bigger picture, they will make huge amounts of money - some of the cards have 29.9% interest on them, which means the bank will make almost £30 for every £100 on the card. If someone has a balance of £1000, they'll make £300 from them per year. Multiply that by hundreds of people and is it any surprise that they keep giving them out?
2007-01-14 02:58:00 · answer #4 · answered by Natalie B 4 · 1⤊ 0⤋
Credit Card Company's only make money when you do not make a full payment... So if you pay your card off every month the CC company earn nothing!!! So the bigger the amount outstanding on your card and the longer it takes you to pay it the CC companys earn big time from this.
2007-01-14 03:04:11 · answer #5 · answered by cranberry queen 1 · 0⤊ 0⤋
Credit can be a tool to use for good or ill. It's all a matter of how it's used. Credit cards are not bad. The problem is how they are used or abused. Some blame can certainly be placed on those who offer credit to credit junkies who use it just like any other drug. However, as I stated already, credit does have it's place and can be used for great benefit if used properly.
2007-01-14 03:33:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It's another way for big business to suck every last penny from the poor public. Credit card companies have become predators with contracts that read they can up your interest charges almost any time, exhorbitant late fees, etc.
2007-01-14 03:01:35 · answer #7 · answered by snvffy 7 · 0⤊ 0⤋
I agree. There should be stricter rules with credit cards. So many people are way in over their heads. I refuse to ever get another cc.
2007-01-14 02:57:58 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Because they're counting on people to miss payments so that they can charge interest and make money off of them.
2007-01-14 09:43:44 · answer #9 · answered by Dan L 1 · 0⤊ 0⤋
because they making money with late fees, finiance charges and all that, so why not?
2007-01-14 02:57:55 · answer #10 · answered by oxygenO 6 · 0⤊ 0⤋