CJJ

Will New Credit Card Regulation Lengthen the Recession?

Please refrain from all the bit**ing and moaning about credit cards and credit scores. People act like other people actually care about their sob stories...Be happy you are out of debt.

The articles idea that this is a good thing at the wrong time. There's a reason the Constitution hasn't been updated more than a few times in 300+ years...there is a reason there are bubbles and will continue to be so. People don't make tough choices when things are good. You don't stop playing blackjack when you are on a roll.
That also doesn't mean you don't do the right thing just because its a little later than you should have.

You don't stick to stupidity just because you've been sticking to it for a long time.

2009's House of Pain: Consumer Loans and Credit Card Debt

Credit card companies are raising rates because legislation is going into effect in 2010 making these actions illegal. They are trying to get the money while they can.
While I think raising rates, especially on already created balances is a crappy thing to do...These banks are there to server the shareholder...Remember capitalism? So this serves to create profit and no one is forced to have a credit card, no matter what your excuse may be.
So if you're for capitalism, you should be less than willing to criticize banks for this.

Also, credit card debt/person is a drop in the bucket compared to the nation's other problems. Credit will contract to individuals over the near term...and in the end they'll have more money due to savings and not paying interest on their credit cards. Also credit will be better right sized for those who can use it.
If they start to charge people who pay their balance every month those people will not use credit, it is that easy.
Soon your "credit" score won't be as important because less people will use credit and there will be less credit.
Like most things today, it won't change overnight but these are obvious screweed up things that will be addressed in time.