Debt Cures’ Revealing Secrets About The Lending Industry

From Debt Cures by Kevin Trudeau,
A regular column by Alan Zakoam, Mar 08, 2008         

Summary: Kevin Trudeau starts chapter two with some revealing statistics like that America’s credit card use is greater than the rest of the world combined and that the credit card industry draws the highest profit of any economic sector in the U.S. Among the top contributors to President Bush’s 2000 election campaign were credit card companies and banks.

 
In Chapter 2 of Debt Cures , the Credit Shakedown, Kevin Trudeau picks up on his assault of the credit card and lending industry in the United States. Trudeau starts out with some revealing statistics like America’s credit card use is greater than the rest of the world combined and that the credit card industry draws the highest profit of any economic sector in the U.S. Among the top contributors to President Bush’s 2000 election campaign were credit card companies and banks (wonder how much funds went to then Vice President Al Gore’s campaign).

Debt for the average American these days is $8,000 and Trudeau says it’s not trips to Rodeo Drive that is driving up debt, rather its visits to buy bread and milk, gasoline and trips to the pharmacy for medicine. The blame for America’s debt shifts from consumers to the lenders, with Trudeau asserting that Americans would pay their credit card bills on time consistently if not for problems popping up. Getting laid off, a divorce, or a medical crisis is what drives America further into debt according to Trudeau, not a lack of financial restraint by consumers. And the greedy credit card companies wait for Americans to have a personal crisis and instead of greeting them with compassion and aide, instead greet them with late fees, penalties and higher interest rates.

There are more opportunities to use credit cards now than ever before. Burger King now allows you to use your plastic to charge your Whopper and shake. Trudeau alleges this is not for your convenience, nor is it for the transaction fees they charge Burger King. No, you can now use your credit card at the drive thru so that you will be late on your next payment, max out your card and be stuck paying penalties and profits to the card companies. There’s no help from Washington, however Trudeau maintains that the government is in partnership with the big lenders. Trudeau concedes the fees are legal, but they are unfair because they change frequently without notice and that when notice is provided, it takes an attorney with a magnifying glass to examine the legalese. Miss a payment and watch your interest rates go up, terms changing without notice costing you thousands of dollars over the life of the credit card and nothing but indecent earnings for the bankers.

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Do you know what your credit score is and what your credit report says? Trudeau says if you don’t know your credit score, your lenders certainly do. And if they notice a change in your credit rating, up goes your interest rate, keeping you further trapped in debt. Pay a late fee to Company A, and see Company B jack up your rate.

Trudeau will use the rest of the book to help explain how you can get out of debt . The early chapters are focused only on the danger and the greed of the credit card companies and lenders. The book remains interesting in style and in content and I look forward to see how I can get out of the credit card mess. Trudeau says you can not only eliminate your debt, but you can also begin to build wealth for yourself.

View other articles from the Alumbo column Debt Cures by Kevin Trudeau

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