Fits of Rage!

Yesterday the new credit card restrictions took effect so, of course, the AP is buzzing with news on how the credit cards have reacted and what the effect will be on America. Doom-gloom, awfulness, end of the world type stuff. The more I read, the more upset I get over many different things:

• How can people be so awful to one another for money?
  
• How come it took the government so long to put this regulations on them?
• Why I am I wondering why the government took so long to regulate them? It's the government.
  
• How did America as a whole become so dependent on the use of credit?
• Why do people think that have to suffer this foolishness?
  

One of the members of the Financial Peace class that my husband and I teach sent me an AP article that was meant to sum up the new changes/regulations, and as I read it I was astounded that an educated individual would believe some of what they wrote (I'm talking about the journalist, not my class member). Here is the article: My Way News - Mixed blessing: credit card reform may shock some.

The article does a good job of discussing the new law, explaining how the card companies are reacting, and giving background on the situation as a whole, but when I got to the part that talks about "subprime borrowers" my hackles went up. The author writes, "for a good portion (subprime borrowers), options may be limited to alternatives like PayPal and other electronic services, prepaid cards, and payday lenders." Payday lenders!!! Seriously?!? Don't these individuals that no longer qualify for credit have another option? PAY CASH!!! Stop depending on a credit card company to cover you. If you don't have the cash, don't buy it. Plan ahead and save money. In the case of an emergency (which there will always be) have an emergency fund and use that. Don't have enough cash flow to save? Read, learn, and apply yourself towards a better life. There is always a way.

As quoted in the article, Roger C. Hochschild, COO of Discover Financial Services says, "Not everyone either deserves or should have an open-ended credit card." I wholeheartedly agree with his words, but not his intention. No one deserves a credit card. No one deserves to pay a company 24-26% interest. No one deserves to pay an annual fee for the privilege of owing money. No one deserves to be a slave to these corporate giants with no soul. It is just not worth it.

As of yesterday, my husband and I are debt free. We have worked for 3 years to pay off the $73,000 in consumer debt that we blindly walked into, and we most definitely did not blindly walk out of it. We were passionate and driven, and my biggest wish is that all of America could see how green this side of the fence is. I find it ironic that our debt ended on the day that these regulations took effect, and I am so thankful that we don't have to mess with this nightmare anymore, but we work daily with individuals still battling with these all too real demons.

If you, or any one you know needs help with their financial situation, read all you can about these new laws and how they might effect you. Here are some resources that I have found and I will continue to post more as I find them. If any of you find any good resources, send them my way and I'll get them up.

Resources on new CARD law:
SmartMoney Magazine - article giving some detail on the changes in the regulations.
Consumer's Union - Nonprofit publisher of Consumer Reports detailing new protections.
Credit Card Accountability Responsibility and Disclosure Act of 2009 - .pdf of the act

Resources for credit card abuse and fraud:
Federal Trade Commmission - become informed or report abuse from credit card companies and collectors.
Federal Fair Debt Collection Practices Act - .pdf of the act