I am constantly amazed by the stories of people who get themselves into incredible amounts of debt but blame the credit card companies for making it too easy. That is like blaming McDonald's because you are overweight.
There is an article in today's USA Today that demonstrates my point. Yes, people were granted more credit but just like the 400 lb man driving past the fast food restaurant...he doesn't have to stop and eat.
See the excerpt below.
"Kenna and Richard Baker of Des Moines say that as their home's value rose, they were barraged with offers for home equity loans and credit cards. They opened up new credit cards.
They also refinanced their mortgage twice and withdrew cash to pay off existing card bills and make home improvements.
But as the economy weakened and Richard's pay as a delivery driver fell, they used their cards again for necessities. "We had to pay the gas bill on cards one month or we'd get cut off," says Kenna Baker, 44.
Today, the Bakers owe $30,000 on credit cards and $105,000 on a home worth only $63,000. They blame themselves but also say lenders share responsibility for "making it so easy" to borrow."
They also refinanced their mortgage twice and withdrew cash to pay off existing card bills and make home improvements.
But as the economy weakened and Richard's pay as a delivery driver fell, they used their cards again for necessities. "We had to pay the gas bill on cards one month or we'd get cut off," says Kenna Baker, 44.
Today, the Bakers owe $30,000 on credit cards and $105,000 on a home worth only $63,000. They blame themselves but also say lenders share responsibility for "making it so easy" to borrow."
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