October 30, 2009

Please don't join the "Debtor's Revolt"

The woman who put out the "Debtor's Revolt" video on Youtube was on Suze Orman this weekend. I urge you not to jump on her bandwagon.

If you have credit card debt and the bank jacks up your interest rate then shop around and get youself another credit card. There is no need to stop making your payments and trash your own credit out of a desire to make some sort of statement. The best way to fight the bank is to simply take your business else where.

Your primary goal should be paying off your debt. If you don't have credit card debt then the bank has no power over you. Its only if you are carrying debt you can't pay off that you'll have a problem if the bank raises the rates. So to avoid the situation entirely you should focus first on paying off your debts.

Getting mad at a bank our upset at over the way they treat you is not a good reason to do something in haste that will just trash your own credit. That will just make your own situation worse. Now you've got debt and bad credit. That bad credit will likely cost you quite a bit in the long run. Next time you want to borrow for any reason you'll pay higher interest. Your insurance rates may go up. It might be harder to find an apartment or even land a job.

If your credit card interest rates are raised arbitrarily then I understand if you get angry and want to make a statement out of principle. But you don't have to trash your own credit and default on your debt responsibility to make a statement. Taking your business elsewhere will have an impact. If everyone stopped doing business with a bank then that would kill them as surely as anything.

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