Credit card companies...the loan sharks of the new millenium?

Yesterdays paper reported that a majority of the bankrupts enrolled in Bank Negara's programme to help them overcome debt were credit card defaulters. And many of them could not be helped as they did not have sufficient disposable income to eliminate their debt. When I read this, I wasn't surprised as any Tahir, Dasan and Hong can get a credit card these days. Just stroll into any shopping complex and it's very likely there will be a credit card roadshow / "promotion" going on, offering anyone a credit card. Even retirees...like my parents were offered. Whats next? School kids? Kindergarten kids?

The banks must realise that a majority of these people don't have sufficient disposable income to pay off any debt, but yet they push anyway. These days, even with an income of RM2500 or less, one could still get credit card approval with a limit of RM3000...where's the logic? It's simple...if you can't pay your dues, you pay the minimum, and then incur a 18% per annum interest on the balance...then, when you spend some more, you owe even more. And finally, you can't keep up with the payments and end up owing said credit card company or bank virtually your life, as you'd be working just to pay off the debt. So, one has to ask, who wins? I'm guessing, not the credit card holder.

I am writing this because just yesterday I got an annoying call from my credit card bank. This is the umpteenth time they are trying to get me in debt. First they offer a platinum...which I rejected. Then, they send me the platinum...twice! Both times expecting me to activate it, to which I promptly cut both in half. Plus, they incessantly send me "cheques" ( blank ones) which I can fill for any amount....with the tiny blueprint at the back stating the interest. Also yesterday, they offered me cash..on loan at "half the normal interest rate" to pay off my credit card bill. I recently spent xxxx ringgit. Quite a bit, but I always pay my dues before the due date, in full.And I intend to do the same this time. Being smart sharks, the company offered me xxxx + 88 ringgit to pay up this amount, at "half the normal interest rate". So, they hope that from earning zero interest off me, they would be able to earn "half the normal interest rate". Loan shark or what?

I have learnt the hard way about credit cards. I started with a clear card...when you have spending power all of a sudden, you lose your head. It's easy to swipe, you don't see the cash...and I was in debt. When I wasn't, I was spending most my cash paying it off. A friend gave me Rich dad Poor dad and I finally realised that it was a trap. Though now I have 3 cards, my clear upgraded to gold ( higher limit and I needed it for travel)...I only use one. One of the others I got free for life from the Malaysian Dental Association...so I keep that for when my current card expires and they want to charge me fees. The other came free with a home loan ( another loan shark tactic) which I got for my dad, for him in case of emergencies. But I have to wonder...is it just me, or are credit card companies and banks these days worse than the ah longs? They have an endless database of clients and I wonder...how many people will go bankrupt?

Note: Best friend..ie Brains for codes bf, swears this one particular bank ( an international one whose card I use) is the devil......the rest are all demons, but this one, the very devil himself. With their incessant tactics at getting me to owe them money, I'm beginning to think so too. Perhaps its time to claim my rewards and terminate the card.