Pay attention to the television, to the radio, the newspaper, and the billboards as you drive on your highways.  We are bombarded with advertising for easy credit for those with no credit or bad credit.  These ads have become so pervasive that you can not make it through a typical day without being subjected to hundreds of ads targeted for those with bad credit.  They have even come up with a phrase that is more palatable to those who have trouble getting a loan.  “Bruised credit.”  What exactly does this mean?  It means bad credit but it makes us feel better about having bad credit in the first place.

The daily mail is loaded with credit card offers.  They say don’t worry if you have bad credit, we will help you.  But, is that really the help that the people who have bad credit need?  All the major credit cards are involved to this; they do anything possible to get more customers.  They are well aware that most of the high risk borrowers will not be able to make their payments if they make them at all.  Enter the rise of interest rates for everyone.  Someone has to carry the risk of bad debt and it sure isn’t going to be the credit card companies who issue that credit.  We all pay for it in the form of hidden fees, higher credit rates, and lowered credit limits.

Payday loans have become extremely popular in the last 10 years.  The concept is simple.  Give them a postdated check and they will give you the money now.  They wait to your payday and collect their money.  For this service you are made to pay an exorbitant price.  With fees so high that some experts have called them legal loan sharks.  Not only does the consumer pay dearly for this convenience, but in many cases this leads to spiraling debt that causes more trouble than they had in the first place. 

The mortgage industry has been the catalyst for the current economic collapse that we are facing.  One of the ways they have been justified in loaning to people with no money is the adjustable rate mortgage.  The consumer is lured in with the promise of low payments that they can afford.  The predatory mortgage companies convinced them that by the time the interest rate went up they would be able to refinance or would be in a position to better afford the new payments.  Unfortunately, with the collapse of credit these borrowers are now unable to refinance and are faced with payments they don’t have the resources to pay.  Many of these well intentioned homebuyers now face foreclosure and the loss of everything they own.  Not to mention the loss of self esteem, the family upheaval, and depression that may follow them for the rest of their lives.

This irresponsibility and greed has led to one of the worst disasters for the average citizen since the great depression.  Once again, caused by these selfish corporations.