Saturday, February 28, 2009

Account Closed

This morning, I was watching The Today Show, the Saturday morning news on NBC TV. Apparently credit card companies are closing customers' accounts immediately after debts have been paid or otherwise settled. The talking head on the screen bemoaned (paraphrase), "What is a person to do if all his credit cards are canceled and then loses his job?"
The talking head's whining doesn't take into consideration that no lender can indefinitely afford to carry a debt which isn't paid or which can't be paid in the foreseeable future. Having made three personal loans a few years ago and having seen those loans go into default, I understand on a much smaller scale that unpaid debts do indeed adversely affect the lender. I've seen normally honest individuals place repayment to me as the last item on their lists of bills to pay. At the same time, some of those same individuals who owe me financial debt have feathered their own nests quite nicely: throwing fancy weddings for their daughters, buying big screen televisions, purchasing new vehicles, and taking expensive vacations. My debtors tell me that they are making sacrifices; if so, I don't see them.

In my view, it is unreasonable to expect or require any entity — a large company or an individual — to extend a loan to a bad risk. Nonetheless, the whiner The Today Show seems to think taking risk with regard to debt should be the norm. Does most of our society feel the same? Does our "illustrious" leadership intend to force lenders to make bad loans?

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posted by Always On Watch @ 2/28/2009 08:17:00 AM