I appreciate everyone's support and understanding and it does not surprise me in this economy that a lot of you are going through similar (and maybe even worse) things. These letters that the banks send out to "inform you of the changes" seem to be pulling a very fine line with the laws. First of all, the only signature they have of me agreeing to any of their terms was when I opened the account. I did receive a letter but nowhere did it say the APR was changing for purchases, just cash advances and balance transfers. Unless they send such letters certified mail or require you to come in the branch and sign off on the new agreement, anyone can say they never got the letter and it ought to stand up in court.
I recently read that both Citibank and Chase (my two cards) received at least 25 billion a piece in our taxpayer-paid bailout funds that the American people also never agreed to. It seems to me that "we the people" are so far removed from any decision making in society that democracy is becoming a sick joke.
Believe it or not, the power is in the hands of the people. If I really want to do it and have the time, I could actually start demonstrations in front of banks. There are enough Americans fed up with this that a handful of people could start turning into hundreds if not thousands. There have already been demonstrations against the government's taxation without representation often known as "tea parties" and between those and some of the armed individuals at town hall meetings, it is starting to send a message. How soon that will actually change things, I don't know.
I crunched the numbers today and realized that if I stopped paying the credit cards but continued paying the student loan debts, I would have nearly $500 extra a month in cash. In these economic times when living paycheck to paycheck and having no cushion on credit and a depleted savings, it makes little sense to throw what little income you have at high interest debts that you will never pay down. There could always be the sudden unexpected emergency such as an auto repair, illness, or other situation that could throw you into a crisis. I'd rather take this extra $500 per month over say the next four months and buy silver and gold with it, stash it away and have a serious emergency fund and if need be I could then settle the credit debt at perhaps less than a third of the original balance. With precious metals on the rise, this makes more sense to me. Some may say it is irresponsible to stop paying but these are survival times. I am even way past due on an oil change simply because practically every penny is going to debts, utilities, insurance, rent, and groceries. Since the car is required to go to work, it doesn't make sense to let the engine blow up so you can keep paying the banks.
Sorry about the rant but I think some points need to be made. I am not someone who likes receiving free rides, handouts, or things of the kind. At the same time, I believe that people should be given fair opportunity. Using bailout money to provide banks with record profits while putting more Americans deeper into the recession is not only immoral, I go as far to say it is outright treason. I've already removed the two credit cards from my wallet and Chase and Citibank both can consider October's payments to be the last ones they are ever going to receive. They can deduct the debts from the bailout money if they like. Should they sue me, I will force it into a jury trial and chances are most if not all of the twelve jurors are also unhappy with their credit cards as well.
