Kurt Ullman wrote:
In article ,
Nate Nagel wrote:

Sure, you think they're making money off you're checking account
balance? Well, they are, maybe a few fractions of a cent. But they're
really making money off of overdraft fees, credit card interest
(especially "penalty" rates) etc.

nate

Which are, for the most part, voluntary on the part of the user.


Pretty much, yes. However poor people, or people living paycheck to
paycheck, are much more likely to pay those fees, esp. the high credit
card interest which sometimes is not voluntary (e.g. emergency medical
or auto repair expenses that need to be paid for somehow.)

for instance, maybe 10 years ago I got a fix-it ticket for a cracked
windshield on my car. It wasn't dangerous (despite what the officer
said) but I had to get it fixed somehow. Because my car was older and
uncommon, a new windshield was $500ish, and because I'd received a
ticket that had to be cleared within a week, I didn't have time to call
around to a bunch of junkyards to find a used one. I didn't have $500
in my bank account. What's the solution to that, other than a) drive
illegally or b) use credit card? (I'm doing much better financially
these days, thanks for asking...)

Now whether that is fair or not to charge high interest rates to someone
whose only fiscal fault is not having a considerable amount of personal
savings, that's another discussion. Personally I think it's far better
to try to make oneself indispensible at work, advance to a higher paying
position while not greatly increasing one's personal expenses, etc. but
like I said, that's a separate topic.

nate

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