The end is near for CC

[Anonymous]

I see dudes with that sign walking around all the time "The END Is Near", and from what I have been witnessing in the past two days here and watching the stock market today, I believe it. Citigroup stock is down to $1.83 a share. BofA is down to $3.09. Not much further now and Citi and BoA will go bye-bye like WAMU and Wachovia etc. etc. etc. "Prime" my a$$.

I think as far as all of our CC's go, we are all about to take a nice big bite out of a sh$% sandwich. The only good news for me is both of my cards are secure! HSBC can't cut my limit without refunding my deposit, which they can't do because I am sure my money is being used by them for some type of purpose. LMAO!!!

[Anonymous]

I'll be alright if they took all my cards. LOL.

[Anonymous]

I'm with you on this one, Pappy.  B of A is renowned for issuing absurd credit lines... 5-10 times larger than the next largest grantor.  They have single-handedly reduced the number of foreclosures nationwide by allowing people to live on these super-high lines... and have been the last to "bite the bulletl".  AmExp, GE Money, HSBC have all been choking their credit lines.  B of A is just getting started and I think you ain't seen nothing yet... watch what B of A does before they're done.  Owie!  Many economists have said (and I agree)... the credit card market collapse will make the mortgage meltdown pale in comparison. Too bad one can't buy stock in "Bankruptcy, Inc.".  Sorry for the doom and gloom, but just trying to be "real".  I have 8 credit cards... balances total $192, until I pay that off later today.  I'm going to watch the B of A, GE Money, Citi, etc credit card demolition derby from the peanut gallery.  sigh

[Uborrow-Upay]

Pappy214, got a question for you...

Is the deposit on a secured card covered by the FDIC in case the lender goes under?  Is it treated as a regular insured deposit account?

[Red1Blue]

---

@Uborrow-Upay wrote:

Pappy214, got a question for you...

Is the deposit on a secured card covered by the FDIC in case the lender goes under?  Is it treated as a regular insured deposit account?

---

Yes, I am pretty sure it is insured under FDIC as it should be deposited into a savings account. You might want to double check with your bank to confirm this. As a matter of fact, I do have one secured card with First National Bank of Omaha. I'll call them on Monday and confirm it is the case and it is insured by FDIC.

[Uborrow-Upay]

Thanks, concorduser! 

I'm just wondering to whom that deposit account would be paid by the FDIC if the lender did go under.  Since it's collateral for a loan, I'd assume the card balance would have to go to zero and the account closed for the cash to be redeemed by the depositor? 

Just a hypothetical question here, but not too far out of bounds considering the economic climate we're in right now. 

[granny031350]

Back in the day (I was born in 1950) credit cards were not ever used or relied upon.  You banked at the local bank and mortgages were based on 2 1/2 times your income etc. 

As a country, we all need to go through deleveraging.  Credit cards are great if used correctly.  I remember that buying groceries was not allowed with credit and using one at a Mcdonalds was unheard of.  In fact, we didn't even have many Mcdonald's back then.  LOL  No one ever went out to eat like they do now. 

Borrowing has become the way some individuals survive.   Time to rethink and realign.

[barbaralee]

About a year ago I watched an episode of Oprah where two frazzled parents were on the couch and explaining how their teenagers were driving them into debt. The parents had financed new cars for both kids, as well as put them as AU on some of their credit cards. They justified this by saying they were good kids, A students, and had earned their financial privileges through academic and social responsibilities that they had shown.

The thing was, the children lacked any sense of financial responsibility, and the parents were enabling their kids spendy behaviors. 

I know this is only one family, but I do wonder how many more American families are like this? Is it typical now for teens as young as 15 to be running around with a MC in their wallet? I'm 30 years old, I didn't get my first credit card until I was in my mid 20s. I received 1 credit card offer when I was 16 and my mother tore it up.

I guess the times just change very quickly. Granny, it wasn't that long ago that any fast food place did not take credit cards.At least where I live, it's only been something that has become widespread in the last 5 years, and in just that short time it has become the standard. 

Message Edited by barbaralee on 02-21-2009 12:34 PM

Message Edited by barbaralee on 02-21-2009 12:35 PM