Most Helpful Customer Reviews
23 of 28 people found the following review helpful:
4.0 out of 5 stars
Much needed revelations about credit card companies - look for the movie soon!, March 9, 2007
While I do think this book goes a bit overboard at times, that is balanced by the explanations of how credit card companies may really operate (often in synch with motivational speakers and economic "experts" who encourage people to take risky chances to incur MORE debt) -realities that the average consumer often does NOT understand.
The confusion starts with reading the fine print on those credit card agreements. Admit it - do you understand every word or does it often sound like a foreign language? If you say "foreign language" you are not alone because there was a recent news segment showing college educated people scratching their heads and confessing that they couldn't understand the terms of the fine print in many credit card agreements.
How many people know that a credit card company may raise interest rates even if the consumer pays THAT card on time but misses a payment elsewhere - even on something like a utility bill or library fine...or if their credit rating drops, even for a month?
How many know that the terms of agreement can change with minimum warning? Think of it - if you bought a suit or dress or anything else, how would you feel if the salesperson came knocking on your door a month later and said, "Oops, we changed the price. You now owe $10.00 more than you originally paid." That's how insane these random change of "terms of agreement" are.
How many people even read the "new agreements and terms" that many suddenly come in the mail? They seem to come pretty quickly and they seem to change all the time. The last one we got said we had the "option" of turning down the new terms (raised interest) but if we did so, had to pay the full balance in full immediately! Luckily, we had a very small balance, paid it and refused the "new terms"... but this could stress many consumers with larger balances.
Having said that, I am NOT one of those people who think credit cards are universally EVIL or the work of the devil. In fact, I think they can be an asset if used wisely by savvy consumers, within limits. However, I do feel that most credit card companies profit from the fact that the average consumer does not pay off their bills every month, wracks up often huge interest rates and simply gets deeper into debt. Question is - is part of the problem the fact that credit card companies count on the ignorance of consumers and take advantage of that....or is it due to the fact that consumers lack financial savvy? Where is the line between the two?
Also, keep in mind that most Americans don't save very much money and the combination of that and PAYING interest rates isn't helping matters. Putting 10 or 12 percent of one's income in savings, rather than paying interest, would go a lot farther in building financial security, wouldn't it?
In any case, I think this book is a step towards educating oneself about the risks of credit cards. But it is only a start. After finishing it, I suggest you conduct some searches here and at message boards and get the info from other people about the realities of credit cards, the pros and cons and how others have used them, for better or worse.
And, a personal suggestion.. if you are EVER tempted to use those 0% or 1.99% short-term, limited time offers, be SURE you ask if your payments will go towards the higher interest or lower interest debt you ALREADY have on that card (if you do). If you don't have a balance on the card then NEVER charge anything on that card till you pay off the debt and ask about any fees involved with using those offers. In short, be pro-active, be educated and know the facts. Credit card companies will often go out of their way to keep you from GETTING the facts but that doesn't mean they are all evil. Credit, used wisely and as part of a budgeted plan, can help you financially, raise your credit score and prove you know how to integrate credit into a total financial plan, which should include saving regularly, planning for retirement and the rest.
One final anecdote: A few years ago, we used a store credit card to buy a new fridge (when our other one suddenly died, for good) and got the new one for 0% interest, paid it off in a year (so the interest didn't go up), had no fee for the use of the card and got free delivery and installation as well. It was a win/win situation and we paid NO MORE for that fridge than we would have if we'd paid cash on the spot. However, we did not charge ANOTHER thing on that card, had a 0 balance to start with and made sure we paid on time every month. In the meantime, the balance of our funds stayed in the bank, earning interest. You do the math. What harm did that small debt do? None.
Having said that, be aware that store credit cards often charge HIGHER interest than many other types of credit cards so you do have to stay informed and know what decisions you are making - and the consequences of those decisions.
UPDATE: Now you can see the movie, too:
Maxed Out
Help other customers find the most helpful reviews
Was this review helpful to you? Yes
No
15 of 18 people found the following review helpful:
3.0 out of 5 stars
Helpful, but Too Superficial, March 13, 2007
Pawnshops, check-cashing outlets, title-loan stores, bank branches, and financing companies, along with billboards advertising credit card repair companies, bankruptcy attorneys, and loans of one kind or another (especially mortgage refinancing) - these are the signs of growth in America's "new economy."
Rising debt is a serious problem in America - unfortunately, Scurlock fails to treat it in a structured manner, with trends, detailed data on the size of the problem and biggest causes and information on debt collectors and their practices, nor does he show the problem in a larger perspective of how we have been living on the edge - first through protected union jobs and extensive overtime (taking advantage of the fact that America's manufacturing capabilities had survived WWII intact), two-income families, credit-card debt, "new" mortgages (more lenient lending standards, interest-only, negative-amortization), and using real-estate as an "ATM machine" via mortgage refinancing. In addition, many of those currently without serious debt basically live from paycheck to paycheck - but a hospitalization or layoff away from serious debt.
The problem is obviously not limited to households - the federal government's annual budget is in deep deficit, as are its trust funds for Social Security and Medicare. Finally, there is the enormous and mounting U.S. trade deficit.
Marketing debt has become increasingly easy - millions of pre-approved applications are sent out each year, "bait and switch" loan operators flourish, shoppers are enticed with offers of eg. "10% off on today's purchases" if you apply today, and vendors are willing to pay the processing fees because studies show that those with credit cards spend an average of 30% more. And until lately, there's been the housing bubble, luring many into "investing" in hopes the market continues to rise (overall default rates now 4.95%, with defaults at 13%+ in the "sub-prime area). Making money for lenders doesn't seem to have been a problem either, with usurious rates, and high fees for late-payments, over-borrowing (even when approved), defaulting on other debts, etc., etc.
Bottom-Line:" "Maxed Out" provides some good background information, but fails to meet the needs of one seriously interested in the topic.
Help other customers find the most helpful reviews
Was this review helpful to you? Yes
No
12 of 14 people found the following review helpful:
5.0 out of 5 stars
THANK YOU !, March 8, 2007
Thank you for writing this book, James Scurlock.
I was held hostage with outrageous fees by some credit card co's for many years .
I am free now and found I can live very well without credit cards.
If the day ever comes that I do want one, I will only consider getting one from USAA. They answer to their members, not shareholders.
You stated on page 22 of your book there are fees for going over the limit which is true. But many times going over the limit doesn't even involve buying a thing. One can get over the limit fees when their available credit limit is lowered and loan shark interest fees are piled on. If you can't pay the balance off, you can easily find yourself stuck in debtors prison!
As for debt buyers, I wish more experts would warn people about the interest these agencies charge, and not agree to anything until they know exactly what they are getting into. Be very wary.
I was scared and alone and agreed to make monthly payments on a debt to a debt buying agency .
I believed for many months I was repaying the debt they said I owed, only to find out $1700.00 later that my debt was not being reduced but was actually increasing because of the interest they were charging and keeping me in the dark about that fact . It wasn't enough for Citibank to get over a decade of payments from me, and know I was trying to send as much as I could. They had to squeeze out all they could by selling a balance that they knew was all interest and fees. And they know I had paid the original balance more than once! They made a lot of money on my ignorance. Now they send me more offers of credit which I shed!
I was in such a fog at that time in my life and felt so much shame and guilt I didn't even realize for many months how many years I had actually paid on that card.
Suicide crossed my mind, but was not a serious thought.
I was wrong to get into debt, but nobody deserves the treatment these co's and debt buying agencies pile . The "punishment" doesn't fit the "crime"
I'm on the right track now . Thanks to you and wonderful people like Elizabeth Warren who have helped me a great deal. You have both been so kind to respond to my emails.
Thank you!
Help other customers find the most helpful reviews
Was this review helpful to you? Yes
No
|
