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credit card position paper

credit card position paper - Andrew Rapaport ECON 367...

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Andrew Rapaport May 20, 2009 ECON 367 Credit Card Companies Are Exploiting American Consumers Every day consumers make purchases based on a system of deferred payments, otherwise known as “credit”. Credit can be used for purchasing just about anything and is generally used when there is no cash on hand. Unfortunately the credit cards have a number of problems. They have high interest rates, misrepresentation of the cost of debit consolidation loans, use of double billing cycles, use of “bait and switch” techniques, improper use of personal consumer credit information, and the proliferation of a number of practices that have no benefit to the consumer. Credit cards are everywhere; there are about 641 million credit cards in circulation which support $1.5 trillion in consumer spending each year. Figures also show that the average household has a card balance of about $8,000. The credit card companies like it when people are in debt. That is because the companies make a lot of money on the interest that is owed to them by the consumer. Credit
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