T h e   L a s t   H o m e   P a g e ...    

or, Damned If You Do and Damned If You Don't
by Josh

I would suppose you are rather like me, you have a certain amount of debt which you pay on time, month after month, and almost always pay well above the minimum. Your credit score is adequate or better.

I have built my credit by following that simple formula and in 6 years raised my score from a miserable 378 to a respectable 750. But that was a year or so ago, before the bubble was burst by our lending institutions with not so good borrowing or lending practices. In short, they were greedy.

I am on social security, the place I live in is rented, but my car is paid off. I had almost $40,000 in credit lines which I respectfully did not abuse. I kept my debt level to a place where it was barely 50% of what was available. I could and did afford a reasonably comfortable life style.

Then, because the banks were greedy and nearly failing, we taxpayers found ourselves in the odd position of lending the banks enough money to cover their losses and maintain thier lavish life styles. To show their appreciation they began to lower all our credit lines which caused my debt to available credit ratio to move out of the good range I had maintained to a place that allowed the Equifax cartel to lower my credit rating.

As you have already guessed, that move caused my lenders to further lower my credit lines, which increased the debt ratio, and further lower my credit score. This is no accident or anything to do with any algorhythm set up to keep national credit on an even keel. This is a deliberate plot by the money industry to screw us all to the wall.

My credit score has recently plunged to 615 even though I still have not missed a payment or paid less than 20% over the minimum due. My interest rates have risen to double or more the original deal I signed up for. That is, all except one loan through a credit union, who is not so greedy.

I fail to see how all this benefits the credit industry. They are literally cutting off the people who are keeping them afloat. If bankruptcies continue at the alarming current rate they are bound to go bust yet again. But next time I dare say they will be left flopping on the beach. At least that is what I hope for. It would be poetic justice at last.

I can read the writing on the wall and for me it says that I will pay as long as I can, but eventually find I am unable to pay as I should. My interest rates and payments are rising due to the lender's greed and I will eventually find there is not enough money to go around. If I fail to pay, my credit rating will tank and I will be unable to rent a half way decent place to live. Once again, I fail to see how this benefits the lenders. It smacks of evil and spite to me.

I am composing a letter to send out to members of congress, the comptroller of the currency, and any other entity I feel might just try to get us back where we were and make ordinary life affordable again. I hope you will do the same. It's all we have left.