It's the credit cards fault

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The growing problem is reflected in cases such as that of Dennis Spaulding, of Corona, Calif. He bought two last-minute plane tickets for his father's funeral in 2006, a purchase that increased the amount of credit he was using and made him appear riskier to banks. The result: Banks raised the interest rates on four of his credit cards — to 24% and higher — doubling his monthly payments to about $2,000.

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What else did he purchase on credit to make his monthly payment $2000?

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It's the credit cards fault

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Don't be so quick to dismiss this. People are ultimately responsible for their own actions, but it is important for us to recognize the environmental factors that shape our behavior. The easy credit we have been experiencing is not a good thing. I have over $50,000 worth of credit available to me via credit cards. That just seems absolutely insane.

Methinks if you went out and used up about 20K worth of your credit lines that within 6 months the models will ratchet you back severely.

After bumping up your rate, of course.

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No one can blame anyone else for their credit card debt.

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Well that is not quite true. Your spouse may run up your bill, I have seen it happen to others. I used to work for CapitalScum, and I have some comments on credit cards:

- The credit card companies want you to spend, and rack up your balances. They do all sorts of stuff to encourage you to spend. Teaser rates, checks, and promoting using your card for a cash advance.
- The credit card companies lobbied hard to get the bankruptcy reform act in 2005. This law makes it almost impossible for consumers to walk away from credit card debt. Now the personal responsibility associated with this is admirable, the credit card companies abused this. They upped limits of questionable people, knowing that they could go after them indefinitely for their balances.
- The credit card companies behave in a highly unethical basis on your credit score. They manipulate it for their benefit. One tactic is to post your highest balance ever as your outstanding balance. They also will not put your correct credit limit in their reportings.

So while no one is to blame for your spending habits, the credit card companies bear some responsibility for the current credit mess. And they most likely will suffer large losses, when bankruptcy is re-reformed to allow people to walk away from their credit card debt.

There is NO reason why consumers should not have the option of bankruptcy. The credit card companies can get out of their debt by filing for bankruptcy, but their clients can't? WTF?

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Well that is not quite true.

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It is true. Your credit card balance doesn't magically appear. Someone bought more than they could afford. It is as simple as that.

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I know someone who had this happen to them. They got married, joined accounts, the guy then put on $20k worth of debt. And then left her.

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ok, but what percentage of people in credit card debt can truly blame someone else for their situation?

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very few. But it proves your absolute above is crap.

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a purchase that increased the amount of credit he was using and made him appear riskier to banks. The result: Banks raised the interest rates on four of his credit cards — to 24% and higher — doubling his monthly payments to about $2,000.

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This ought to be illegal. What is the logic behind this?