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As a veteran financial services practitioner I watch with serious concern the debt levels of individuals and governments.

In particular I will also raise the credit card red flag especially within this period of rising rates. Sure I have a couple credit cards and they are paid off monthly so I am perhaps not the best kind of customer for credit card companies because I avoid their horrendous rates on outstanding balances. Yes those rates are perhaps necessitated due to losses and frauds. But, why aren't consumers and their financial service suppliers doing more to minimize their high borrowing costs and even excessive debt? There are options available to decrease the high cost credit card balances by using other borrowing products where debt is better managed by suppliers and users. FI's should take the opportunity to keep educating their customers  proactively at every touch point. The promotion blasts, mostly unsolicited, by credit cards companies sure give the impression that they are not concerned about customers/prospects, just numbers in their portfolios. 

What really upsets are the role models that consumers see in their political environments- governments living on debt and deficits as if there is no day of reckoning and just passing on the responsibility to future generations who have to pay higher taxes to cover endless interest increases. Governments get themselves on a treadmill to disaster by continually overspending to "buy" political favour/votes.

Budgets that spend on the back of more debt have to stop so people realize it is a bad example and they don't do the same.

Pat Palmer | Wednesday, March 14, 2018 | Trackbacks (0) | Permalink

 


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