Credit Card Bailout?

[MHJ]

Is it true that there is a credit card bailout bill looming on the horizon? I have heard some mumblings about this in the press.

[manojjonam10]

I had also heard about this news. It sounds to be true though. Since many people are debt ridden with their cards there seems to be a move towards credit card bailout.

[italkcash]

I doubt this will happen. Credit card bailouts are not going to happen

[ekmallette]

Originally Posted by italkcash

I doubt this will happen. Credit card bailouts are not going to happen

Although it sounds like an answer to a whole bunch of folks prayers, I tend to agree that it's just not going to happen. There would be way too much to lose for the card companies and the banks behind them. I think, however, that most delinquent credit card debt can be negotiated for a win/win situation. Ideally, if you can't afford something...don't put it on credit, ya know? Tough to do though.

[Ms_Margaret]

Sorry to say that I don't agree with bailing out credit card debt. Like many others I've had credit cards and worked to pay them off. I don't see why most of these people can't do the same thing.

I suppose the idea for the bail out is to save the banks and lenders. I just have no sympathy for them.

[Ms_Margaret]

The credit card bailout would only help those who are seriously behind and not just 1 or 2 months. It will be similar to people who are on the verge of losing their homes. The credit card companies will “bail out” consumers by offering principal reductions of 20 – 40% and lowering interest rates to 0% only if they are delinquent and on the verge of being charged off or written off. They are not being nice, but tricky. The credit card company will try to recover the principal reduction by being paid out by the government with tax money. That would reduce their losses and pass the bill to taxpayers.

This would follow the same pattern for the previous bailouts. Every big company that wants to stay in business via government bailout will have their lobbyists make sure the politicians in their pocket follow through with making sure they are in the bailout packages. The biggest beneficiary is the credit card company not the consumer.