If a person spends more than he or she can afford, is it really fault of the credit card company?

  • Lol, responsible! Yes they are !!!!!!!.

    Well the 77 % on the no are right in some ways, but these people don't have credit card debt,i am a responsible person, and have been not very responsible sometimes id admit it.But money i don't have, and are given to spend, is like a baby finding candy in the drawer.
    I have racked up, then payed off, racked up ,and paid off, so i have very good credit rating, its off the chart,but i also have racked up and now cant pay back !Now.
    They know for a while now, that i can only make minimum payments,they now and soon will want to increase my limit again, does that sound responsible for me?, 77% no people lol.And im not talking about a few thousand in debt, but almost 11,000.
    Yes its there fault !!! Its so easy to spend money,and not realize you have, they know this,and it racks up and up until you look at your monthly bill lol.
    And since i gone threw this twice how could this be my fault lol.Apparently i never learned from the first one ,ya that's because you forget, until it happens again they know this.

  • Every private entity should take full responsibility for the credit they extend.

    In my opinion, I believe that every private entity should take complete responsibility and potential loss for the credit they extend. It is the prerogative of the credit card company to monitor creditworthiness and the ability to repay. If they lend too much to an individual, or an individual defaults on their loan, it demonstrates that the credit card company failed to assess the risk accurately, and they should accept the complete liability. Of course, each individual also carries the responsibility of protecting his own creditworthiness and reputation.

    Posted by: QuietWayne85
  • Yes, because it is not the money that they spend that bankrupts most people, it is the ever-increasing interest rates the credit card companies charge.

    People who have to declare bankruptcy from credit card debt rarely do it because they could not pay back the money they owe. In fact, they usually actually paid it off years ago. What most people get stuck paying for the rest of their lives is the interest on the money they borrowed. Most credit card payment plans have the interest gained every month higher than the amount you pay. This, combined with the fact that credit companies reserve the right to raise your rates at any time they feel like it, causes people to go bankrupt.

    Posted by: H_Baird
  • I believe credit card companies encourage users to spend more then they can afford.

    Credit card companies have been shown in the past to encourage users to enter into overwhelming debt. By using confusing terminology and hidden transaction fees customers are encouraged to think that they are well within their budget to purchase items. It is only later that the customer realizes that they entered into a spiraling debt relationship with the creditor that will cause them to pay far more in interest then the value of the original purchase.

    Posted by: taisiemay
  • I think even when a person overspends on their credit cards, the credit card company can be held to blame because they encourage it.

    Credit card companies do everything within their power to try to get you to spend more than you can afford. The longer it takes you to pay off a credit card, the more money the company makes off of you. They make money off of all the incurred interest. It also seems that the more you spend, the more often they raise your limit, regardless if you've gone over it or not. Simply put, the more money you spend, the more they make off of you. Again, they encourage such behavior because it's to their benefit.

    Posted by: BrianDj
  • I agree that if a person spends more than they can afford, it is the fault of the credit card company because credit card companies should not be extending credit to people they know cannot afford it.

    Credit card companies are in the business to extend credit to people who cannot afford paying them back. In the mean time, they rack up money by charging excruciating interest rates and other fees (late fees, over limit fees, etc).

    One good example of this is the targeting of post-secondary students and seniors to take on credit they cannot afford. Credit card companies take advantage of the ignorance of these populations to essentially trick them into accepting credit they cannot afford and under conditions they do not understand. In the meantime, they understand that these populations will probably one day be able to repay them: a university graduate will hopefully one day get a good job and come to terms with their debt, and a senior will hopefully one day die and their estate will pay off their debt. Until then, they have sometimes paid double, even triple of what they owe in interest and bank fees.

    Posted by: toastedstandard
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  • Of course it isn't.

    You are in control of your spending. If you spend more than you can afford, you got no one but yourself to blame. If you can't resist temptation then you shouldn't have credit card. You should only use cash or debit card. It is most definitely not the credit card company's fault.

  • A bit of both

    I don't generally approve of credit cards and I certainly don't approve of adverts encouraging people to take out loans but at the end of the day, it is the responsibility of people who can't afford credit cards not to use them.

    Credit card companies only have power over you if you let them. When I was at university I was shocked by the amount that people who claimed not to be given enough financial aid actually spent on unnecessary things like fashion, magazines, new books (as opposed to second hand or borrowing from the library), new computers (as opposed to using the library), jewellery, "skin care", make-up, nail polish, bedroom decor and, of course, getting wasted and vomiting all over the place and leaving it for others to clear up for them. The same people would often complain about their financial circumstances and the apparent "privilege" of those who avoided debt by simply living within their means. While it is true that some really do need financial aid and others have always had money for whatever they want, there will always be some who refuse to accept responsibility for the financial problems they bring on themselves while believing that anyone who is not in debt has lived a life of ease, devoid of sacrifice.

  • If a person spends more than he or she can afford, it is her fault!

    It is not a credit card company's fault. Yes they provide you with a credit but you should put in mind that whatever you spend using credit card, you have to pay back with interest if you don't pay in full when the bill comes. Learn to live within your means. I believe its all about self decipline

  • Spending What You Do Not Have!

    It is not the fault of the credit card company. It is the responsibility of the individual to control their spending. If you make $2000 why are you spending $4000 on your credit card. Do not blame the credit card company! I have known many people who have overspent and end up struggling to pay their bills. Totally their fault.

  • If people choose to spend more money than they can afford, it is not the fault of the credit card company that issued their credit card.

    I do not agree with the claim that consumer overspending is the fault or responsibility of the banks and credit card companies that granted the credit. It is, and should be, the responsibility of each person to be accountable for controlling their spending to live within the limits of their income.

    One major reason that people overspend is because they are not provided instruction in the basics of personal finance in school. For far too many people the first time they have any dealings with personal finance is when they get their first job out of school and start paying their own bills. We need make personal finance a part of high school education.

    Posted by: G4rwIsdead
  • Borrowing money is like asking for trouble and, if trouble arrives at your doorstep, remember that you asked for it.

    The problem with buying on credit is that you end up paying much more than you would have if you had just bought with money that you already had. In life, there are consequences for our actions, and overspending leads to dire consequences.

    Posted by: MickHehe
  • I disagree that overspending on behalf of the consumer is the fault of the credit card company, because each individual should be responsible for living within their means.

    As a nation trying to climb out from beneath the debt burden in which it finds itself, the public needs to start taking control of excessive spending. Too many years of living beyond our means has created a financial black hole in our economy. It is time to face the music and stop blaming the creditors for extending the credit. If we cannot keep our own spending in check, we should not be applying for the credit in the first place.

    Posted by: HospitableEdgar46
  • Everyone knows their limits, and no one forces them to spend.

    Every person knows how much they make, how much they can spend, and how much they can pay back. That is like saying, "if I go to a restaurant and eat too much, and get a stomach ache, it's the restaurant's fault, because they served me the food, and let me eat it".

    Posted by: CeIIoBurke
  • There is no reason to hold the credit card company at fault for someone not being responsible with their money.

    To say that the credit card company is at fault for someone spending more than they can afford is the same thing as saying that obesity is the fault of the company that makes the food. Since you don't have to use the credit card, and you don't have to eat the food, there is no justification in blaming these third party companies for your own problems.

    Posted by: MariaR

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