They are there to maximize shareholder value.  This has to



happen at your expense because they are not expansive abundance minded

thinkers and dreamers. If banks aren’t writing off bad debt,

shareholders get grumpy.

Why is this?

Because sharehorlders want to maximize the value of their

shares.  Nothing revelatory there.  So to do that for

banking stocks the best way is to increase profits and then possibly

reduce expenses.

So how do banks increase profits?

By targeting you and charging the higher interest rates they

desire.  Banks do lend to good credit people but that is

almost an afterthought because they are "less desirable" than bad

credit people.  This seems counter intuitive but it's not.

They know their "numbers" meaning they realize that some of these high

credit (aka higher risk) loans will go bad.  They know what

credit score range to lend in and what percentage of the loans in that

range will go bad and have to be charged off.  Usually when

it's charged off that just means it is sold to a debt collector.

I know this because I went through the debt collection process in

2002.  Unpleasant for sure.

So banks compete fiercely for credit risks and bad credit

people.  The credit card industry is notorious in many ways

and especially for this.  In a way it is good for rebuilding

credit after a period of drop or even devastation.  The new

extremely high rate card if used properly, by paying on time and

keeping the balance low, has a positive benefit on your score and your

overall credit report.

Those offers for a credit card that is "secured" or charges an obscene

rate, ridiculous annual fee, and monthly maintenance fee are very

prevalent and continue to grow in the marketplace.  Banks are

reacting to what their shareholders demand as well as the growing

credit problems in the marketplace.

As more people are running into credit trouble, bankers and

shareholders see increased $$.

Get off the creditor/indebtedness treadmill.  The American

system today is designed to keep you the consumer in enormous

debt.  The debt load eats up most of your earnings and buying

power and quickly spirals out of control.

This is the system the powers that be wanted.  And it has come

to fruition now.  So be one of the ones that gets out of this

mouse in the spinning wheel situation.  Step out of the

spinning wheel and start building your financial future.

For more info on how to do this visit the site below.