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In the wake of the massive loan failures of many banks worldwide due to bad mortgages and other risky loans I have been more skeptical of corporate self governance, let alone the governments ability to see beyond itself to address real issues that are obvious, before they become crisis.  How many corporate executives really think that their risky high interest loans and credit cards are not ultimately harmful for most consumers?

Who among us right now doesn't hold those banks accountable to their own misery?  I have little sympathy for them and have zero interest in bailing them out.  I have only some sympathy for poor home buyers (first time home buyers new to the system and easily conned).

That said, there is a whole industry that prey's on consumer ignorance to financially destroy them at the corporations personal gain.  I am talking about the credit card industry, and recently EVERY large business has their own branded card they attempt to sell you EVERY time you make a purchase.  Sears, Home Depot, etc. 

The rates on these cards are ridiculous.  Take Sears CC for example.  22 variable rate!  according to this calculator if you buy a new computer for say $1000. Pay the minimum each month of $20 (a guess)it could take 137 months to pay it off!  At that point you have paid $2740 for that computer that by then is totally worthless.  And we all know most people only pay minimum.

The average household now owes about $10,000 in credit card debt.  Paying off $200 a month will mean they will be paying off that debt for 21.6 years...  And thats only if they don't add any new debt.

Every time I got to my bank (Bank of America) they tell me 'Oh my, you qualify for a great credit card'.  I tell them they said the same thing last week, and please turn off the alert as I am not interested.  Every time they say, 'Certainly, I will mark it as not interested'.  Every week it's the same.  As though I am in some crazy version of Groundhog Day. 

When was the last time you went into a big name store we were NOT prompted to save 10% if you buy it with a new Credit Card.  "It's a great deal sir!".  Indeed.

I am probably ranting to the choir, but really it frustrates me that so much in the media is focused on how we possibly got this bad, when its been so obvious for so long.  At least some legislators are finally trying to bring sanity to the credit card industry.

So I say its fine to hold individuals accountable for their own mess.  People need to take personal responsibility.  But that doesn't stop at people.  Companies that prey on the susceptible need to be identified as such.  Not just rent-to-own businesses but all those stores selling us more debt.  It's unethical.  It's wrong. 

It doesn't have to be that way.  Credit cards can be set up to force small balances or require quick full payments or MUCH larger minimum payments.  Provisions can be made for those who are out of work and need quick credit coverage. But over all, interest only payment systems are only hurting consumers and helping debt companies.

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