Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Categories
Tip of the Day

Tip of the Day Keep Your Receipts

Keep Your Receipts - When it comes to filing, your taxes you need to make sure that all your receipts are keep in good order, just in case you happen...

read entire tip

Related Podcasts
Recently Added
Other Great Sites

Credit Card Dangers

Posted On: 2007-01-31Length:

Listen to this podcast

Whether you're an entrepreneur or a consumer, credit card convenience can really cost you. Hi, I'm Nicole Anderson, vice president of marketing at USA Federal Credit Union. The US Senate's committee on banking, housing and urban affairs convened on January 25th to examine the practices of credit card companies in taking unfair advantage of consumers. Our first guest is Brad Dugdale, and he knows a lot about some of those unfair advantages. Mr. Dugdale co-authored the book "Let's Save America, Nine Lessons to Financial Success." Brad, as a bank board member, and a wounded credit card consumer, tell us a little bit about your interesting vantage point on this heated topic.

Well, you know it's a very interesting confab, and conundrum in a sense that we have this miracle of compound interest, we're not teaching people how to embrace it so they can become financially successful. But in the meantime credit card debt is being sold to Americans in many, many innovative ways, and thus more and more people are being trapped by compound interest, instead of being empowered by it.

Well, set our discussion up today and tell us a little bit about what, in your opinion, is the current state of consumer debt in America.

Well, let's just see how well the credit card industry has done.


If you go back and you look in 1980, there was about $50 billion in credit card debt. Today that number is $860 billion.

That's incredible.

Now think about that. If you had a business plan and you said I want to take this balance from $50 billion to $860, most people would say that was a pretty successful execution.

Absolutely. So why, in your estimation, do you feel that they have been so successful?

Well, there's been a couple of key things. You know, one, they were successful in winning a Supreme Court case that let them headquarter in states that have no limits. And they basically,

And that's no limits to interest rates, correct?

Yeah, that's correct. And so they basically nationalized the banking industry and so a lot of banks headquarter in South Dakota and in Delaware because there are no limits that they can charge. And that gave them the ability to mass market to all the states and basically, you know, usurp any usury laws that were out there in the nation. But the other thing that's probably more disturbing in my opinion, is that they've loosened the underwriting standards. If you go back, you know I graduated from college in 1980. If I wanted a credit card, I had to fill out a balance sheet, I had to tell people what my cash flow looked like, and there was a good chance I could be denied. Or the amount of credit that would be given to me would be limited. Today, if you can fog a mirror, you can get a credit card. And so what they've done, is they have over time loosened the underwriting standards and more and more people are signing their names on the dotted line because anyone can get a card.

Sure. Now, tell me a little bit, that's a good segue. What do you feel is the...

Discuss It!

rushmypapers me said:

We must know how to use credit cards and what is the advantages and disadvantage in using that card. Like always your podcast has very good and useful information which helps the people a lot. Many people don`t know the exact usage of credit card. Your show can give them some idea on using of credit card.

small server rack said:

Most of the users are not aware of the various dangers while using the credit card services. I think this can make a lot of problems if we are not aware of the usage of the credit card operations. This information regarding the same will be helpful to know about that.

Lion said:


Kevin said:


nancy said:

<a href="https://www.facebook.com/M.Hussnain19>What are you looking for i have what you want</a>

Custom Essay Writing Service said:

This subject has impressed me for quite some time. I have just started researching it on the Internet and found your post to be informative.

Write My Essays said:

You have a good point here!I totally agree with what you have said!!Thanks for sharing your views...hope more people will read this article!

sudoku online said:

Best place to play sudoku online free of cost without download and signing up free.

www.freecodesmarket.com/8-perks-you-get-in-luxury-villas-of-goa-that-is-nowhere-in- hotels said:

Really a very nice post.

Web said:

Nice post about podcast.

Man and Van Manchester said:

Very informative post - thank you for helping my business

Industrial Roller Shutter Doors said:

Great post, if you ever need roller shutter doors give us a call today

Pest control Newcastle said:

Really enjoy your blog, keep up the good work

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Y Shares

Y Shares These are also called institutional shares and, therefore, are highly attractive to institutional investors. The great thing about these shares is that they are pretty safe, since institutions are relatively stable, and they also do not require 12b-1 fees to be paid. The downside...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com