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I spotted the scam right after deregulation, those junk fees started showing up along with the insistence on a minimum monthly payment. I thought, "Here it comes, suckers!" and cut the cards up and mailed them in.
I've done just fine with an ATM card. I bought a used car on time and paid it off early to establish local credit. I managed to buy a house without the OK from a credit card loan shark. It's possible to do these things.
The confession of the Providian guy that they held checks or even "lost" them to the shredder sounds exactly right. I know people who have been hit with multiple late fees when they've sent the payment in on the day the bill comes in. That's caused their introductory low interest rate to climb. My guess is that it's business as usual, anything to get that interest rate up.
It's an insane system. People who can pay these cards off should do it, even if it means sacrificing equity in their houses to do so. Then cut them up and send them in.
Anyone who can't pay these things off is guaranteed to have the most miserable time of all as the economy finally spirals down the way it always does when the rich are fattened at the expense of everyone and everything else.
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