Deep Thought (re: "McCains Rack Up At Least $295K In Credit Card Debt")
"McCains Rack Up At Least $295K In Credit Card Debt"
Is it really "debt", if the oligarch "pays" 0.00% on their $295,000 AmEx Black Card revolving credit lines?
"The three American Express cards credited to McCain's spouse and his child all had a zero percent interest rate."
vs. 
Just another example of the two sets of books in this country. One set of suggested rules for the oligarchs, and one set of strict rules for the public. These aren't perks that certain fortunate folks pay for or deserve. These are payoffs. Bribes so the lawmakers enact "Bankruptcy Reform" and to ensure soft legislative treatment. The rich & famous receive these payoffs in order to prevent them from speaking out against the way the public is treated. Indeed, over at FICO there are separate databases for the politicians, the rich, and the famous so they don't publicize any problems with the deeply flawed credit score system (Source: The movie "Maxed Out").
The only solution is to stop doing business with these people. Let's cut the frickin' cards and help out friends and family fill out https://www.optoutprescreen.com/ to stop all credit card offers. Let's cut these banks off at the knees.
Actually, I have a better idea. Find a card with no yearly fee. Costco has an amex card that has no fee. Then use it for EVERYTHING you can, and pay it off monthly. You get to use their money for a month and they get bumpkiss from you...cool deal!
You have to be disciplined to make this work, but if you are, it is fun.
June 14, 2009 11:48 PM | Reply | Permalink
I like it Stilli. I like anything that makes them pay. The Village Voice had a great bio piece on Judge Noach Dear in Brookln that rules against every false claim debt collectors in his court. I love this guy!! (Even though I'd like to see more than just the false claims thrown out for folks making under $50,000...)
http://www.villagevoice.com/2009-06-10/news/hounded-by-debt-sharks-brooklynites-turn-to-an-unlikely-rescuer/
June 15, 2009 12:52 AM | Reply | Permalink
Neither of my cards has a yearly fee, but I get "points" for every dollar I spend. I charge absolutely everything on it, down to donuts and bagels. I pay it off every month without fail. I don't even know what the interest rate is and I don't care because I never pay interest.
Now here's the best part:
When I have 25,000 points saved up, I cash it in and they send ME a check for $250!
And I am constantly getting offers from other card companies; my current company keeps sending me interest-free offers. They do that to encourage people to get behind in what they can pay, and then they have you.
Yes, it requires discipline, but I consider my credit card an easy substitute for cash, rather than a loan for something I can't afford.
June 15, 2009 12:46 PM | Reply | Permalink
CVille Dem: You're definitely better than me. I have a Springsteen concert addiction, so I can't allow myself to have the unlimited means to fly myself to his weekend shows in other cities...
June 15, 2009 1:58 PM | Reply | Permalink
Does this really cost them? They charge the business a fee for the transaction; does this screw the bank or the business? (I do the same for the same reason, but I wonder...)
June 15, 2009 3:00 PM | Reply | Permalink
tomgnh: Banks definitely charge the Retailer more for Credit Card transactions as opposed to Debit Card transactions. I know that much. So if you want your local bodega to stay in business, run the card as a Debit.
Anyway, to answer your question, IMO, I don't think Credit Card on time payers -- ie, "deadbeats" -- really hurt the CC companies that much. Especially considering that no more than probably 2% of the people out there are truely disciplined "deadbeats."
June 15, 2009 3:32 PM | Reply | Permalink
How about they don't have a percentage because they charge a huge annual fee and use the high purchasing power of their clients to push sales and advertising at them, for a better profit than targeting the general public.
Hey, let's burn up the 1st class and business class sections of the plane - Liberté, Fraternité, Egalité (choose 2 out of 3)
June 15, 2009 2:30 AM | Reply | Permalink
Yeah, heaven forbid that everyone on the plane could still feel their shins after landing.
June 15, 2009 4:17 AM | Reply | Permalink
Deep Vein Thrombosis, baby!
June 15, 2009 4:40 AM | Reply | Permalink
Hey Desi, Thanks for responding...
WIKI: "As of 2007, the annual fee in the United States was $2,500, with a one-time $5,000 initiation fee for the first year."
$7500 doesn't seem huge in relation to $295,000 to me. If they were charged 25% Interest Rates like most of the non-elites I know, they'd pay roughly $73,750 on that nifty $295,000 balance.
If there's something else out there that somehow justifies them receiving this free money, I'm 100% willing to be educated. I'm definitely no expert... Doesn't smell right to me though.
June 15, 2009 4:24 AM | Reply | Permalink
Also, why would it matter that AmEx makes up for "charging" 0.00% interest to Black Card holders by charging the Robb Report set for the privilege of marketing to the Ruth Madoff's and Cindy McCain's?
Seems to me that the oligarchs aren't paying market rates for money. Just like Dodd and his 2% mortgage, it stinks like Limburger.
June 15, 2009 4:50 AM | Reply | Permalink
Given that they're probably at low risk for defaulting and that they're big money people (hence have more leverage), I don't think a 5-10% rate would be unreasonable. Of course, even that comes out to $14,750 to $29,500…
June 15, 2009 10:56 AM | Reply | Permalink
Yep. If they had to go through what most of us go through, they'd be in serious financial pain too. But they don't. There are two sets of rules.
There are "separate lists" for physician appts too.
June 15, 2009 4:31 PM | Reply | Permalink
How do you get the accent aigu?
June 15, 2009 3:01 PM | Reply | Permalink
If you're working on a Mac, type Alt+E, then the letter you wish to accent.
If not, why not? ;)
June 15, 2009 3:18 PM | Reply | Permalink
Hey, that's the shortest shortcut I've found. Thanks (but on a mac "alt" is "option." Thanks! C'est trés bien!
June 15, 2009 7:03 PM | Reply | Permalink
On my MacBook Pro the key is labeled "alt" on top and "option" on the bottom. I suppose they think they're reducing confusion by doing so. :)
June 16, 2009 10:11 AM | Reply | Permalink
Anyway, I appreciate the tip!
June 16, 2009 12:46 PM | Reply | Permalink
Hey, my pleasure. Here are a few more:
alt+u = umlaut: ü
alt+o = ø
alt+i = hatted thingy: î
alt+a = å
alt+` = other accenty thingy: è (vs. é)
alt+s = esszett (ß), a German symbol for double s (although esszett literally means sz, go figure).
Anyways, I encourage you to discover your own favorites.
June 16, 2009 1:22 PM | Reply | Permalink
Very creative... I guess I shold get a Mac soon... Peace out, Nebton! :)
June 16, 2009 11:28 PM | Reply | Permalink