What would happen if everyone paid off their credid cards

[graywarrior]

and then stopped using them?

[Lone Pawn]

1. Banks would lower rates.

If everyone did not use credit cards, then credit cards would not exit. However, that is an exceedingly unlikely scenario.

[graywarrior]

3. Yes, it is unlikely

But I'm doing it anyway. Slipping under the radar.

[liberal N proud]

2. Wouldn't that make them all shit!

No income from interest!

[izzie]

4. Would be like a black hole to half the people in the country?

Who knows?

[MsUSA]

5. That's what we did, had one balance of $600.00 something, and

another of $700.00 something, paid both off, and now, are paying off as soon as we get the statement. Works great, makes us decide if we really NEED the purchase or not.

[nadinbrzezinski]

6. Hmm if everybody paid their Credit Cards all of a sudden

it would drive profit reports down, as their profit is US, paying interest

This tells all you need to know, since you pay your balance off every month now... you are called a deadbeat by the industry.... those who pay interest are called revolvers, as they make it work.

So welcome to the dead beat community... I was in the other one for four montsh and went, how the heck do people do this?

[T Wolf]

7. Did you also know that saome banks are floating the idea of

charging people who do pay their balance off every month a fee because we are using "their" money.

That is really fucked up, but in the world of George W. Bush, not unexpected.

[TheFarseer]

17. don't they get a small cut from the merchant?

less than 1% of the purchase usually? If I was charged for my credit card, I would have to tell them to f*ck off and just have my debit ATM card for emergencies.

[Lydia Leftcoast]

23. This is like Qwest charging me extra for long distance since I don't use

it.

They actually did that, which is why I switched to Vonage.

[goodboy]

8. They'll find another way to destroy people's lives. (nt)

[pnorman]

18. Does anyone know what percentage of the purchase goes to the card outfits?

That they can no longer 'live' off that fee, is 'tough'. Maybe THEY ought to look for a friendly loan-shark or a debt-consolidater. That's what so many millions Americans are having to do these days.

It's almost impossible to exaggerate the degree to which our government has fallen into the hands of GREED-HEADS. But they know how vulnerable they are, and are trying to destroy all the checks and balances. Forestall the day when people wake up.

pnorman

[deadcenter]

20. last time

I worked in retail was about 20 years ago. Back then MC/Visa was 2-3% of net depending on volume of sales. Amex was 5-6%, that's why so few small businesses take Amex. That was at a family sporting goods business, so I'm guessing that the higher your volume the lower percentage rate you (the retailer) pay back to the credit card company.

deadcenter

[pnorman]

21. That IS high.

I forgot the total amount of credit card transactions, but even ONE percent of it should be able to support that handful of CC outfits very nicely. But for some, there is no such thing as "too much".

No matter WHICH flat rock you lift lately, you see the same sort of maggots. They are headed for a FALL, the lot of them. We're outnumbered, outvoted, and out media-ed, but we have justice on our side.

Stand up, keep fighting! http://shows.implex.tv/wellstone/

pnorman

[The Witch]

9. I never owe on my credit card.

Since I first got one, I have never once failed to pay a statement. This will eventually change, because someday I will want a car, a home, etc... but for now it certainly keeps me honest. They don't make any money off me and I have a zillion-dollar credit rating.

That's what Dad told me to do and that's what I did. Amazing how simple it was...

[graywarrior]

10. I'm in credit debt due to an accident

What I realized is that I need less than I thought. Credit cards make you purchase things you don't really need. I haven't used a credit card for 2 years.

[StuckinBFE]

11. I recently just paid off all my credit cards and

they raised my credit limit not that I will ever need $4500 in limit, if I was every going to use that much credit I would get a loan.

People well never pay off all their credit card debt. I know so many college age people that just rack up their credit cards (I am talking $10k plus) and they don't think it is a bid deal. I think it is because they learn from their parents who have the same debt in credit cards. My parents hardly ever used their credit cards and I learned that from them.

People need to wake up and become responsible.

[bikebloke]

12. One came in the mail unapplied for

Back in the 80's. I never used it. Before taking off in what turned into four years abroad, I was tempted. Free goodies. Nah, I decided to take the honest road, scissoring it in half before I left.

[Kansas Wyatt]

13. Bush would grant them of Gov't bailout for their lost extortion money.

[demnan]

14. I just paid mine off

I don't ever want to get in a mess with credit cards again.

[SophieZ]

15. Suggestion: all progressives pay off their credit cards.

The average American is paying $1000 in INTEREST per year on credit cards.

Let the right-wingers pay through the nose -- fine with me. Less money for their other projects.

But, we should use all our money for our own purposes, and our fights for justice.

As the credit card companies have gone bonzo with their $35 late fees and 25% to 30% and up on punitive interest rates, it's time to say, "bu bye"!

I helped advise my gf out of over $40,000 in college debt over several years. She now has ZERO debt. Now, I have to follow my own advise and get mine down to zero.

For those on the way to debt freedom, one intermediate step is to prune down to two cards. One for debt, and one for current purchases that is paid off each month. That way, you avoid paying interest in new purchases.

Some people freeze their card in a block of ice in the freezer -- only for emergencies!

[number6]

16. then cancel em .....

If you have to have one, keep one with lowest % rate

[slackmaster]

19. Everyone absolutely should carry zero balances

There's nothing wrong with using credit cards for convenience.

People who carries balances needlessly are screwing themselves.

As for the hypothetical question posed by graywarrior, I think banks would scramble to sweeten the deal by lowering interest rates and fees. If their profit margins were hit, they'd raise rates on secured credit and lower interest on savings. I am a former bank employee BTW.

[DuaneBidoux]

22. Everyone missed one obvious thing..there'd be a depression

All of the money that people would have to suddenly use to pay down their balances would be money they could not spend elsewhere...so to do so, all at once, would mean a sudden and dramatic drop in money supply in the working economy. This would quickly lead to a downward spiral as businesses began to lay off workers because of lack of deman.