The Easy Credit, High Interest Rate Swindle

Posted by freedomforall 1 week, 4 days ago to Government
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Excerpt:
"The easy credit, high interest rate swindle has been a financial feature of the landscape for so long it's rarely examined for what it is: not just a reliably profitable swindle, but as a safety valve for a broken system. We all know how it works, either from experience or observation: credit cards are distributed like candy on Holloween, with one little kicker: a dose of financial fentanyl is included: insanely high rates of interest, i.e. 21% and up, and rapacious late fees."
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The real swindle is that the federal reserve act creates credit/money from nothing at virtually ZERO cost to the banksters who lend it at 21% and more.
Yes, eventually the debtors default - and the taxpayers bail out the banksters who have been stealing from customers and gambling on the side.
The fedgov is the source of this swindle.
D.C. NIFO!
It's the only way to be sure.
SOURCE URL: https://charleshughsmith.blogspot.com/2025/01/the-easy-credit-high-interest-rate.html


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  • Posted by JohnRandALL 6 days, 15 hours ago
    I see people taking on the 21% interest payments on their credit cards (using financial fentanyl, love that term!) every time I go to Costco, and see those carts filled to the top with $200-300 worth of items they probably don't really need, and I suspect can't really afford. We go and usually just get 3 or 4 items on our list to get. Great article, so true, thanks!
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    • Posted by mccannon01 6 days, 12 hours ago
      "Financial fentanyl" made me smile, too. A long time ago my wife and I stopped buying on credit and paid off the cards we had - yeah, it took serious fortitude for both of us to pass up the latest do-hickey of desire until we had the cash. Now if we use a card at all it is paid off by the end of the month. Haven't paid interest in years - I'm sure I'm hated by the credit card company. The result is amazing!
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      • Posted by 6 days, 12 hours ago
        I just opened 2 new CC accounts, McC.
        The CC companies offered $200 each if I opened an account and used the cards (to pay for my groceries mostly.)
        I'm happy to accept their offers and the cards will likely go dormant (now that I have received $400 in free groceries.)
        They create money from nothing and get people addicted to credit.
        I wish I had the power to stop them.
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        • Posted by mccannon01 5 days, 20 hours ago
          I get these free stuff offers all the time, too, but send them to the grinder. I figure there must be something in the fine print I can't be bothered to read so out they go.
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          • Posted by 5 days, 20 hours ago
            Yes, they always have high interest rates, but if you don't carry a balance its acceptable.
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            • Posted by CaptainKirk 17 hours, 3 minutes ago
              Agreed. While I refer people to Dave Ramsey... I DO NOT push people to cash only. I put EVERYTHING on a CC. And I pay the bills at the end of the month (or sooner. I recently made 4 payments in one month on a CC. Just because it lowers the bank balance). It's not like I am making real interest.

              But, some people are addicts... They have to stop. I start them back with ONLY GAS for 6 months. Then GAS and GROCERIES for 6 months. After that, they understand better what a CC is for, and that it MUST be paid at the end of the month.
              TBH, I don't work with people who cannot afford to pay cash for food and gas...
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    • Posted by 6 days, 12 hours ago
      As one who has never carried a credit card balance, I am floored that anyone does that.
      That said, my best friend has been carrying such a balance for decades. As soon as a balance gets paid down a bit he buys more that isn't needed.
      I guess that's one reason that the media claims that a family must make $70,000 or more a year just to pay their rent, food, and utilities.
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      • Posted by CaptainKirk 17 hours, 7 minutes ago
        FFA, I work to help people understand that money is psychology. I've worked with MANY people who have all graduated to properly managing their money. One guy had 5 credit cards worth of debt. He took me to lunch a few years later when he stroked a BIG check to pay off his second mortgage. And again, when he became mortgage free.

        It starts here... EVERYONE has 2 numbers. Below the low number in their checking account. THEY cannot spend money, because they are close to broke. And above the other number, they start thinking about vacations, and things they would like.

        I make them split their direct deposit. Mostly into savings, and only enough into Checking that they can barely stay at the low number. It takes about 1-2 months of this for them to realize "savings isn't spendable", and it's EASY to save (if you make it the default position).

        A lot to learn around that... But it never ceases to amaze me how quickly the light bulb goes on.

        The other thing. If you want something, write it down on a piece of paper, with the date and the price. And in 30 days, if you still want it (and you don't have to go to savings), get it.

        But everything you cross off that list because you skipped it. Add it up. And total it by month. That's how much that TECHNIQUE is worth!!!
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        • Posted by 16 hours, 28 minutes ago
          You are doing them all a great service, Captain. 👍
          Make saving (instead of spending) a habit and suddenly life is fun again.
          I wish my best friend would try your method.
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          • Posted by CaptainKirk 16 hours, 20 minutes ago
            FFA, DM me, and I will give you my email to share with your friend. Here is how I roll...
            After a quick intro, I will explain how I operate.
            I will give him homework (gathering his information).
            Then he schedules a phone call/Zoom meeting.
            We walk through things. And The process repeats. I do NOT bother them. If they stop the process, it's 100% on them. I am here to help and to give them the next baby steps. Usually it's 1-2 weeks between calls. Sometimes it's a couple of months.

            Honestly after 3-4 months, they are usually "set up", and they only contact me for "next level" stuff (like what do I do with all this cash? LOL. And it happens)

            I don't charge anything. I do this to tithe! Same as Tutoring the kids in math/science.
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  • Posted by $ Thoritsu 14 hours, 24 minutes ago
    Great summary of the BS situation! This is one way banks guarantee profit and no risk. The other is the Fed Rate against other loan rates.

    We should all pool our retirement funds and open a bank.
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  • Posted by term2 16 hours, 15 minutes ago
    I havent used credit cards for a long time. I use debit cards only. If I was to actually use a credit card, I would pay it off in full before interest was charged.
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