Posted on December - 11 - 2009

How to Put Credit Card Companies Out of Business

Intriguing thought, putting the credit card companies out of business, but unlikely it would ever happen. But if all Americans decided in a unified movement to destroy their credit cards, and convert to a cash-only society, wouldn’t it be kind of cool?

Suze Orman, a well-known personal finance writer, is attempting to encourage Americans to do just that. On her CNBC show this past weekend, she asked viewers to join her in a ”Back to Cash” movement. Citing that it was “time to go back to the good old days – the times when you literally paid cash for everything”, Suze asks us to stop using credit cards altogether. On her website, she vehemently pleads for your support and has a pledge form for viewers to sign on for committing to go cash-only for selections varying from a minimum of a week, up to 6 months. 

I signed on to the bandwagon, if for no other reason than to see what the current results were as far as how many folks supported her cause (and how many people selected the option: “Are you nuts? I can’t live without my credit cards!”). The current talley was out of approximately 3900 responses, 63% of voters had agreed to go credit-card-free for 6 months; 21%, for 1 month; 13%, for a mere week; and only 4% had shunned the pledge altogether choosing to call the idea “nuts”.

So what is the big beef with credit card companies that is causing this stir? (As if we don’t know). Here is what Suze’s proclaims on her website:

Credit cards are increasing fees and interest rates – even on good customers! Suze says it’s time to make a statement! Go back to paying for things in cash. Avoid the fees, interest rates and late payments. You’ll probably spend less and you will take your power back!

Of course this has been coming on for some time, and we are all pretty frustrated about it. Some more than others, particularly irate customers such as Ann Minch who berated Bank of America this past summer and got 15 minutes of fame over it (as well as an interest rate reduction). For more details on her story, read this blog post.

So is it possible to live without a credit card? Sure, but the convenience of credit cards is hard to give up, plus you get extra warranty protection and often rewards such as cash back or airline miles. If you are one of the few and proud who never carries a balance, uses credit cards for every purchase and maximizes rewards as a result, these changes are having minimal impact on you.

So how did I vote? I selected the “nuts” option. Most people that know me would agree that it fits well – and I think that might be a good thing.

How would you vote? Tell us by leaving a comment!

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Tagged Under : Business, Card Companies, Credit Card, Credit Card Companies

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