There's no accounting for accountability

Once again, my responsibility is no longer to just myself and my family, but to all the screw-ups out there who can't manage their own lives.

Yes, I'm ranting again.

A few weeks ago I blogged about the mortgage industry and the government; namely, how I could have gotten into a larger house and I could have lived in a nicer neighborhood and I could have gotten so behind on my bills that I needed a bailout - but I didn't. Hubs and I bought a home reasonably and responsibly. Yet I did not get any thanks from the government ($8000 tax credit, refunds, incentives) even though my buying a home helped the industry, then and now.

Ok, enough about that. You can read the blog if you're interested in my rant on housing.

This is a completely different rant - on government and the credit card industry.

Let's start at the beginning.

When I was in college, walking across campus was a mine field of credit card offers. Everywhere I turned, a booth was set up with an attractive frat boy asking if I wanted a free shirt/one month's room and board/university blanket and all I have to do is sign up for this credit card!!! I didn't read the fine print and soon became saddled with too many free t-shirts that didn't quite fit right and a stack of credit cards with annual fees and high interest rates. Perfect for a college freshman away from home for the first time without a job.

I learned my lesson quick and by my junior year in college carried only one credit card with no annual fee and a low interest rate. No, I didn't pay it off each month. But I always paid more than the minimum balance and was never late on a payment. I was what the credit industry liked (I thought) - a customer who racked up interest each month, but paid on time. They could count on me and my wasted money!

The card - acquired in 1999 - lasted until early 2006, when I received some disturbing news. I had moved across the state, having my former roommates forward my mail to a friends place until I had a permanent address in my new city. I used my card often in those first few months after the move; as is often the case, my new job didn't pay as well as expected and my new city was much more expensive than the last. My balance began to slowly accumulate again. Unfortunately, in the midst of moving and changing careers, I had forgotten to change my address with the credit companies (this was before online banking) and I missed one payment. One. ONE.

I had never had problems with my credit company before, and had become accustomed to opening the bill, looking at the minimum payment and doubling it. I blindly paid the card, never bothering to look at the rates or disclosures. Big mistake. After about five months of this (late 2005 and early 2006), I realized that the large number under "Total Balance" was not declining. Turns out, my one missed/late payment over 7 years had caused the company to jack my interest rate from 13% to 27%. Yes, they more than doubled my interest rate!!!! Many angry calls later, I discovered that they were not willing to lower my interest rate. Not a bit. Not even after 7 years of on-time payments.

But I didn't cry that the credit company should coddle me or take care of me. I was ticked off, not beat down. So I did what any responsible, pissed off person would do.

I transferred that balance to a different company offering 0% interest for 1 year. And I paid it off in 1 year. I still have that card, too, with an interest rate of 7%. At least someone thinks I'm a good customer.

But that situation could change after this weekend.

There is a bill that just cleared through the Senate, landing on Obama's desk today, concerning the regulation of the credit card industry. In this bill - which was overwhelmingly voted for, from both republicans and democrats - credit card companies cannot raise interest rates on customers until they are more than 60 days late, thus eliminating the nastiness that I had had to go through when I was just a misunderstood twenty-something. Ok. Everyone deserves a second chance to get things right, right? So, you miss one payment? Let's let you make it up and not miss another one, or then we'll have to do something about it.

Oh. . . but that's not all.

This bill also helps clear the way for all credit card owners to become equal. Across the board. So, even though I pay my credit cards each month, doubling/tripling/quadrupling the minimums in order to pay them off completely in time, my card would carry the same interest rate as someone who does not pay them off each month. Someone who just keeps racking it up and not caring about bringing down the debt.

Not to mention that all cards may soon have annual fees. And, there is some speculation that credit card companies will begin charging interest from the moment of purchase, so even if you pay your balance entirely each month, you will be charged an interest rate for that month on each transaction. No more using your cards just for free airline miles - those miles aren't so free anymore. There really is no such thing as a free lunch anymore.

In the article that got me ranting and raving this morning, the publisher of the Nilson Report David Robertson says "Customers who pay in full each month will have "to start picking up the slack, to start pulling their weight.""

Whhhhatt?!?!

Let's say that I use my card responsibly, the way credit cards were meant to be used. Emergencies only, or for everyday expenses that are paid in full at the end of the 30 day cycle. Either way, I pay off my debt. So, since I pay in full each month, I am not contributing to the credit industry at all and need to have some regulations put in place so that I can start "pulling my own weight".

I think paying my credit card off each month is pulling my own weight. What David Robertson, the government, and the credit card companies want me to do is start pulling the weight of everyone else. Pulling the weight of deadbeats and irresponsible spenders. Pulling the weight of those who get in over their head and decide that instead of being smart about it and paying down their debt, they will just continue to accumulate more and more. After all, the government will save them from themselves, won't it? It did with the mortgage industry. Who was helped by the regulations there? Not I, a responsible homeowner.

There is no accountability and no personal responsibility anymore.

I am sorry that you are over your head in credit card debt and mortgage debt. But don't take it out on me. I didn't cause you to spend that way, and I bet that if I paid off all your bills for you, you would do it again. Because as you learn when you're a kid, it's easier to spend your parent's money than it is to spend your own. Don't let the government be your parent. Regulate yourself. Take accountability for your actions. Because I'm sick of taking responsibility for you.