The Bite of the Shark
TimeWatch Editorial
November 24, 2015
One of the things we have accepted without question is the matter of credit. We surrender ourselves, our reputations and therefore our futures to those who desire only to squeeze the last drop of time, talent and skill from those of us who have not been blessed with resources. In fact, the book of James, chapter 5, verses 1 through 6, pronounces a punishment upon those who take advantage of their hired servants:
“Go to now, ye rich men, weep and howl for your miseries that shall come upon you. Your riches are corrupted, and your garments are moth-eaten. Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days. Behold, the hire of the labourers who have reaped down your fields, which is of you kept back by fraud, crieth: and the cries of them which have reaped are entered into the ears of the Lord of Sabaoth. Ye have lived in pleasure on the earth, and been wanton; ye have nourished your hearts, as in a day of slaughter. Ye have condemned and killed the just; and he doth not resist you.” James 5: 1-6.
It is one thing to defraud by cheapening the wages of those who depend upon you; it is another thing entirely to shovel away the remaining portion of those wages by loan sharking. Laurence A. Tisch, Professor of History at Harvard University, who writes as Niall Campbell Ferguson, is a British historian from Scotland. In his book: “The Ascent of Money, A Financial History of the World,” on page 13, he says:
“Poverty is not the result of rapacious financiers exploiting the poor. It has much more to do with the lack of financial institutions, with the absence of banks, not their presence. Only when borrowers have access to efficient credit networks can they escape from the clutches of loan sharks, and only when savers can deposit their money in reliable banks can it be channeled from the idle rich to the industrious poor.” The Ascent of Money, A Financial History of the World,” page 13.
That may be so in some cases, but a closer look reveals that the concept of the credit card, while appearing at face value to be a convenient tool, has the ability to ensnare those who are not fully aware, as securely as does the loan shark. The Discover Card Website reveals the following secret:
“Credit card companies usually grant you a grace period of at least 21 days between the purchase date and the payment due date. If you pay the entire statement balance in full and on time, these charges will be waived by the card issuer.”
Miss the interest free period, however and the interest rate kicks in at a whopping 11% to 23% percent, depending upon your “credit rating,” which is another matter entirely. That is still not the end of the story. On the website: CreditCards.com, Jay MacDonald says the following:
“There are numerous ways to accidentally soar over your limit. You can charge over it, of course. A stray automatic payment for an annual or semi-annual insurance bill could do it. If you're close enough already, an annual fee or even additional interest on purchases could exceed the ceiling. Some card companies also use this clever trick: They suddenly lower your limit below your balance and then ding you with an over-limit fee.”
This is obviously the tip of the iceberg. Just a gentle warning to watch your spending, and monitor your statements! Remember the animal at the end of the word Loan is a Shark!!
See Article posted today at TimeWatch Daily entitled: Fed backs rules to curb deceptive credit card practices.
Cameron A. Bowen
