Friday, May 22, 2009

Bad Ol' Credit Card Payer

The New Times writes about me and thousands of people who pay off their credit cards every month-- the credit card companies aren't happy and they're coming after us:
Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.
According to David Robertson, who tracks the credit card industry, folks like me who pay off the card each month--about 50 million people or a 1/3 of all credit card holders, have been "making out like a bandit."

Bandit? Pardon me, but I think these card companies still profit by the transaction fees they charge merchants. And the rebates, points, etc.? While something is given back to me, it certainly isn't much. Chump change actually. And they should know.

Personal money expert Dave Ramsey says that even if you pay off the amount every month, people who use credit cards spend more than those who deal just with cash.

So if the credit card companies start charging me to use their card, I'll seriously consider cutting it up.

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