State to take bigger bite of your wages

[Rim05]

Pretty soon we will be working of the State and Federal governments.
I got a notice from my credit union that my credit amount has been lowered. They said it had nothing to do with my credit rating so I am wondering what is happening. I have a Penny's credit card that I never use but I got a notice that the interest charges are going up and there will be a shorter time period to pay. There was some other stuff so I am cutting it up. I just wonder what is starting to happen.

[Jeanfromfillmore]

Originally Posted by Rim05

Pretty soon we will be working of the State and Federal governments.
I got a notice from my credit union that my credit amount has been lowered. They said it had nothing to do with my credit rating so I am wondering what is happening. I have a Penny's credit card that I never use but I got a notice that the interest charges are going up and there will be a shorter time period to pay. There was some other stuff so I am cutting it up. I just wonder what is starting to happen.

Remo, what is happening is everyone is tightening up on credit, and it is as you wrote, it doesn't have anything to do with your credit rating. All my credit card limits were reduced and I have a great credit rating. The real kicker is that banks like Chase are really screwing their cardholders. If you used or transferred money to get those low interest rates, around 2.9 to 5.9 on a fixed rate till the balance is paid off, you will now be required to pay 5% of the principle each month instead of the usual 2%. This will more than double your monthly payment. And if you ask the bank to lower your monthly payment, they will tell you they will do it if you agree to a higher interest rate. Mind you this is the same bank that received all our tax dollar money in the bailout. There's a new law that takes affect in January that requires banks to use your payments to pay off the higher interest charges on your card first and not allow them to be pushed to the back as they've been doing. It also doesn't allow them to up your interest without giving you a much longer notice. There's probably other new requirements that I don't know about, but those are two that I do. The banks and credit lenders are scrambling to beat the deadline and screw their customers before the deadline.

[Rim05]

Have you checked the interest earned? I found out that on a CD of about $17,000 Chase is paying .25%. I also know of at least 2 banks that pay less than 1% on what we used to call a pass book account. The only time I use a card anymore is if I order plants or bulbs and that is not often.

[ilbegone]

Originally Posted by Rim05

Have you checked the interest earned? I found out that on a CD of about $17,000 Chase is paying .25%. I also know of at least 2 banks that pay less than 1% on what we used to call a pass book account. The only time I use a card anymore is if I order plants or bulbs and that is not often.

You are also taxed on that money while it loses value.

I'm not sure what the current true cost of living shift is now or where it's going, but way back when I saw the way it's stacked against us.

Let's say that you deposited $25,000.00 into a checking account and the interest rate is 3%. Inflation rate is 7%. Your money loses value, yet you are taxed on the "income" the bank pays you.

We can look at Social Security as well.

Not only has Congress pilferred Social Security, I believe the money in our accounts are listed in the dollar amounts for when they were collected. Take the dollar figure of the total for each year you and your employer contributed to Social Security, use an inflation calculator to find what those dollars were worth when they were contributed, and check that against your current account statement total. That will be an eye opener.

I believe that the game is rigged so that if you are responsible and live within your means, you are punished because the fat cats don't have as much leverage to milk you. As well as all those mayonnaise jars of green backs buried in the back yard becoming worthless.

However, if you live your life up to the eyeballs in debt while making the right investments, writing off all the right tax avoidances, and deftly stepping between corporate financial traps, you can retire comfortably.

Unless the greed driven bubble pops before you are ready.

There's the old joke about a person spending all his free time studying the stock market and invested $1,000.00 in a popular telecommunications stock of a decade or two ago, which went belly up. He lost all his money.

His neighbor and coworker bought $1,000.00 of canned beer and spent all his spare time watching sports on Tv. When he swilled his last can of beer, he was out the $1,000.00 as well, but at least had the cans to to turn in for their recycling value.

[Jeanfromfillmore]

Originally Posted by ilbegone

You are also taxed on that money while it loses value.

I'm not sure what the current true cost of living shift is now or where it's going, but way back when I saw the way it's stacked against us.

Let's say that you deposited $25,000.00 into a checking account and the interest rate is 3%. Inflation rate is 7%. Your money loses value, yet you are taxed on the "income" the bank pays you.

We can look at Social Security as well.

Not only has Congress pilferred Social Security, I believe the money in our accounts are listed in the dollar amounts for when they were collected. Take the dollar figure of the total for each year you and your employer contributed to Social Security, use an inflation calculator to find what those dollars were worth when they were contributed, and check that against your current account statement total. That will be an eye opener.

I believe that the game is rigged so that if you are responsible and live within your means, you are punished because the fat cats don't have as much leverage to milk you. As well as all those mayonnaise jars of green backs buried in the back yard becoming worthless.

However, if you live your life up to the eyeballs in debt while making the right investments, writing off all the right tax avoidances, and deftly stepping between corporate financial traps, you can retire comfortably.

Unless the greed driven bubble pops before you are ready.

There's the old joke about a person spending all his free time studying the stock market and invested $1,000.00 in a popular telecommunications stock of a decade or two ago, which went belly up. He lost all his money.

His neighbor and coworker bought $1,000.00 of canned beer and spent all his spare time watching sports on Tv. When he swilled his last can of beer, he was out the $1,000.00 as well, but at least had the cans to to turn in for their recycling value.

What is the incentive to save nowadays? Answer:None. That is what is really scary. But it would surprise you at how many people do not have a clue to the situation we as a country are in. They believe that a white knight is going to ride in on his beautiful stallion and save the day, so to speak. All I know is that those with the skills to survive and understand the situation will fare well, and those that don't will be in for a rude awakening. Just tell them that catsup and hot water got a lot of people by in the 30's. Don't know is hot sauce or salsa will work though.

[Rim05]

I passed a Chase bank yesterday and ask for a copy of their rates. No one would give me one, I had to see an agent. I finally said ok. I ask the person why I could not just get a copy. Answer was they were just starting the new rates yesterday and wanted to be sure people understood them, you just know I told her I 'do' know how to read a statement. Bottom line is CD Specials for a $10,000 7mo acct the interest rate is 0.75. That is just a sample. The banks are still making out better than OIL.