Take a moment and put your ear to the ground. Hear that strange, howling, screeching, screaming sound? That, my dear, is the collective cry of millions of Americans crying “Foul!” as they see credit card limits slashed, interest rates hiked, and even have their credit card account closed by the card issuer.
If you’re infuriated with credit card companies, rest assured that you’re not alone. In blog posts, finance forums, webpage comments, and angry tweets in the millions, Americans are voicing their ire over the new round of credit card pullbacks, as card issuers take steps to protect themselves against increased risk and higher costs.
No wonder that some people, like real estate investor Fred Wilharm of Franklin, Tenn, have decided that enough is enough. In his Youtube smash hit, The Tennessee Credit Card Massacre, Wilharm takes out his anger on credit cards by slicing, drilling, and shredding his cards, stopping just short of finishing up the job with a generous application of explosives.
If you too have felt like taking a chainsaw to your credit cards lately, rest assured that you’re in good company. Mr. Wilharm’s video is just one of a series of online “plasectomy” videos (a term coined to radio talk-show host Dave Ramsey) in which consumers experiment with ways of doing in their plastic by using anything from scissors, blenders, fire, lawnmowers, and the most experimental so far-liquid nitrogen.
What a difference a year makes. Not much more than twelve months ago, credit cards were the closest thing to a free lunch you’ll ever see. Now that Dr. Jekyll has turned into Mr. Hide, consumers are waking up to the harsh reality of the credit pendulum swinging to the other side. In its wake follow lower credit limits, higher interest rates, and jumpy card issuers that slap on punitive rates and fees with even minor missteps.
But is there life after credit cards? Or rather, is it even possible these days to live without a credit card? Credit cards have become ubiquitous, and they are so intertwined with our financial lives that it’s hard to imagine life without them. Whether you’re looking to book a flight or rent a car, you won’t get much further than the town next over (in your own car), unless you have a credit card. Further, some places in the U.S. no longer accept cash, and even some airlines, like Southwest Airlines, are declining cash when you try to purchase a meal or snack in-flight.
Credit cards, of course, are also handy little tools when it comes to building a credit history, another of those modern life creations, which you’ll need when applying for a mortgage or other loan, and even when getting a cell phone, applying for a job, or signing an apartment lease. (Debit cards, however useful they may be, don’t help you build a credit report).
Yes, there is much to be upset about, and in many cases for good reason. But as a nation, we’re hooked on plastic, and it’s not going to change anytime soon. So no matter how much you slice and dice that card, chances are that sooner or later you’re going to come back to your card issuer to beg for forgiveness.
Ultimately, the best way to turn the tables on credit card companies is to learn how to use credit cards to your advantage. If you follow the basic rules for smart credit card use, you are much more likely to fly under the radar of credit card companies and keep your credit card terms just as sweet as they are.
