Limits? What limits?

editorial cartoon by Michael Escañuelas
editorial cartoon by Michael Escañuelas

It looks like credit card companies are finally wising up to the fact that a lot of people are unable to pay back the debt they incur. If only they had figured this out long ago and not offered ridiculously high credit limits to people who realistically could not afford to pay back the debt before the economic problems that we are all dealing with now.

Perhaps lowering credit limits could be good.

It would allow credit card holders to spend less and maybe keep their debt to a minimum, but credit card companies are doing all of their lowering after the fact and stiffing a lot of customers.

It has been a popular topic lately. Credit card companies are scared that they may actually lose money and that they are not being tough enough.

So what are they doing? They are lowering limits without forewarning customers and, in some cases, tacking on huge fees to credit card bills.

This is bad for many reasons.

Credit card customers may have a credit card for emergencies only and if that card has a significantly lower limit, it may not help them when they need it.

Also, if someone has the ability to pay off their debt, but their limit is lowered, how is that fair?

It is not. And nobody is exempt from this blanket change in the credit card industry.

If you are the model customer or if you are the guy who never pays his bill, you will most likely be treated the same way.

Credit card companies do not have the time or do not care enough to call each individual customer and really assess where they are with their finances and if they have the ability to pay their debt off.

Credit card companies are smart and they want people to use their cards and charge money. They have a pretty good deal going. They get to charge huge amounts of interest and assuming that the customers pay off their cards, they will get the original balance back and then some.

It is about time that the credit card companies start shaking in their boots. Sure, there are some people who run up bill after bill with no intention of ever paying it back.

But for us little guys who faithfully make our payments every month, it is a pretty rotten deal, especially if a limit is lowered below the balance currently owed on the card.

When that happens, it automatically looks like we spent more than the limit on our card.

In the end we are all responsible for our own debt. We incurred it and we have to pay it back.

But relying on a limit that you have had in place for a long time and then to turn around and find that you are paying fees for being over a limit that you were not aware of can be devastating financially and emotionally.

Thank you, greedy credit card companies for your care and concern during this economic crisis. Knowing that you are only concerned about yourselves sure puts us at ease.

And congratulations figuring out that many of your customers cannot realistically afford to pay you back quickly or at all.

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Unsigned editorials represent the opinion of the Campus Times Editorial Board.

Michael Escañuelas, Editorial Cartoonist
Michael Escañuelas

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