Something's up with the credit card industry. Could it be ready to collapse?

Two articles:

http://www.contracostatimes.com/ci_10531774?nclick_check=1

http://www.msnbc.msn.com/id/25246231/

In both cases they're citing "fees" as the reason, but I'm increasingly concerned that the credit card industry may be on the verge of collapse and these companies are looking for real cash.

gas stations have to get by on very slim profit margins, a few pennies a galon. credit card transaction fees are based on a percentage of the total purchase. so higher gas prices actually cut into the gas station profits more than lower ones.

edit - a little better explaination

Bob's gas station makes a profit of 5 cents a gallon on gas. The credit card transaction fee he pays to take credit cards is about 3% of the purchase price. So if gas is $1 a gallon, he makes 5 cents, and pays three cents to his bank to process the card, leaving him a profit of 2 cents per gallon. This is actually pretty typical, most gas stations make their profit on

But with gas at $3 a gallon, he's paying 9 cents per gallon just to take a credit card. He has to increase his cut to 10 cents just to break even. Not a good profit margin.

And its even more tricky with debit cards, and debit cards run as credit.

It is an energy company with wide reach.

just given some of the people I know, I would say that figure is pretty low.

and when I heard wrinkles and a couple of others last week, talking about irresponsible credit card use and borrowing by individuals, I notice they didn't address the question of just who had given them all those cards, for those astronomical fees (nor have they addressed the paycheck loan industry, another rip-off)

goint to cost about $7k per taxpayer.

Interesting?

If there was ever a scam industry, the credit card industry is one of the biggest. I mean interest rates at a bank earn you maybe 0.5% but they charge people 14 to 21%?

That is an industry that needs to fail and be forced to remodel with more regulation.

If you want same rates as credit card companies try www.prosper.com
You can loan people money at 7% up to 36%.

When people default quickly you will learn why high risk loans have high risk rates.

Credit Cards are unsecured. The only thing making people pay is their credit.

My credit score is exceptional and rates are still way too high. I dont buy the whole credit card rates are high because it is unsecured debt. It is high because of
1) Greed
2) Not properly qualifying people who apply
3) Not getting serious about security; instead credit card companies pass along
huge fraud costs to the legitimate cardholders.
4) Massive advertisement and promotional costs

Many people have been carrying huge balances which has been great for the CC companies as long as people pay the minimum balance each month. When people stop doing that, and they are, the CC companies are saddled with "uncollectables". Credit card debt is not really secured by anything (at least I don't think it is). These companies are going to have to make up their losses somehow...higher fees, higher interest/ Gov bailout? Just wait! It's coming.

Watch as rates double... and people are no longer able to make their payments...

Deliberately designing their system to make it nearly impossible to rid yourself of them. As "Joshua", the computer in War Games said, "The only way to win, is not to play" but that's not so easy in the current fucked up economy.

Ask yourself the following question.... Are your credit cards going to be paid off within 7 years? If they aren't, and your credit's going to be fucked anyway, just walk away and don't pay the bastards another cent. It's not real money. Fuck the predatory bastards.

Once you've had one judgment against you, it's nothing to have two or more as well. Freedom is just another word for nothing left to lose. My income was slashed by 2/3 the last few months, so I'm living below the poverty line for my city. So, although I'd like to be able to earn enough money to pay my credit cards off, I don't - what can I do? I'm doing everything I can, but there's just little to no cash available in the economy right now.

And what can they do? Send me, and thousands of others, to prison? I don't think so.

I was able to declare bankruptcy 6 months before the law changed. So I was, indeed, able to walk away from them. Now, with it being harder for people to discharge their debts, the credit card companies have them where they want them. They can jack up their fees and rates without fear of the whole debt being discharged entirely in bankruptcy court.

For BKR right now. With rising prices, I cannot keep up the balancing act I had going. I admit my part in causing my situation, but I wasn't alone.

I'm protected through my student loans for a while.

Trust me on this. You will be saddled with paying them forEVER and there's no possibility of them EVER being discharged, unlike CC debt.

debt for life. And I could pay it off within 3 years, and that's giving it a lot of time.

But I'll take more precautions.