Well, today probably marks the beginning of a series of difficult financial choices I must make... at least while the U.S. economy is teetering.Here I am, sipping a cup of coffee. I just received a mailer from Capital One, which is out to notify me of a change in our terms of agreement.
"Due to extraordinary changes in the economic environment, we're reviewing our existing credit card accounts. Having considered these economic conditions, your account's current Purchase rate, and the length of time you've had this rate and account, we will be increasing your Purchase rate. We're also raising your Cash Advance and Default rates."
Essentially, my rate is increasing by 70% on April 17, 2009. Mind you, I've never been late on payments. I've always paid more than the minimum. The tone of this mailer is very impersonal, and I question this move on their part.
Through no fault of my own, their decision has forced me to critically analyze their commitment to their best customers. I realize they have a business to run. However, I am shocked that they are targeting customers who not only bring them good business, but cause no problems.
Now, many people who have enough cash and savings to buy houses, cars, college tuition, and pay medical/dental expenses would tell me that I don't need credit cards... or credit cards are bad. I am so happy that those citizens live in a bubble where unexpected problems never overwhelm their savings and income. For me, although I am good at saving money where I can and watching my spending, I am one of the middle-class citizens that needs a little credit every once in a while. To make it even more difficult for customers like me to pay down balances and risk losing them altogether makes no sense to me.
Reluctantly, I have no choice but to close and immediately pay off this Capital One account. I certainly wrote their company to let them know how disappointed I am to receive these change of terms.
And so the credit crunch continues --- but give it another week and another credit card will be emailing you an offer you that they will suggest "you cannot possibly refuse" with "competitive rates and allowances". I have 2 credit cards and one of them I use on a regular basis; the other collects mothballs (sort of like my black book). Needless to say, they, the credit card companies, find themselves penned against the wall due to their own lack of proper care where consumers are concerned. Now, in many ways, we are not only bailing them out but also, continuing to suffer the consequences for their actions. However, much like all things made of plastic -- they, too, can melt and burn.
ReplyDeleteLOL... you're probably right. I'm looking forward to adding more credit card offers to my e-shredder! It makes it harder for us to empathize with these predatory companies, but I certainly don't want people to lose their jobs. And somehow I doubt your black book has dust or mothballs on it, G.
ReplyDeleteUh huh, my black book has not been used in so long that last week a Curator contacted me asking if I was interested in donating it for a local museum.
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