While credit cards are predatory, etc., it is important to change how one does things in personal finance. Debt consolidation is worthless unless fundamental changes are made.

Credit card companies DO scam their customers (my first credit card was obtained as a freshman–but I realized even then, as I gathered my free tote for applying, that they could work in my favor). And in many cases they charge outrageous rates and fees. They are predatory. That’s why it’s important to remain vigilant, and be choosy. And disciplined. And avoid credit cards if you don’t think you can.

But the good news for me as that none of my credit card companies are making any money off of me. I choose cards that have no annual fee, and all of my interest rates are low and fixed.

But the thing is, most people aren’t capable of paying off those cards every month. It’s too tempting to keep them.

I read that the average US household carries $10k in credit card debt now. That’s average. That includes my dad and my father-in-law, each of whom never has a balance. And me, who no longer carries a credit card.

It also includes folks like my friend, who landed herself $40k in debt, re-financed her house to pay it down, and promptly ran it up again. The latter tends to be the norm.

AND some cards charge you an annual fee if you DON’T carry a balance.

I just feel that, as a rule, credit card companies are a racket. They extend credit to those who can’t afford it (a big named jeweler gave my college aged brother a $5k line of credit on his minimum wage, part time job at a drug store) fully aware that the usurious interest rates will make it impossible to repay. Then, they cry foul when folks declare bankruptcy or default. I’ve seen it happen again and again.

And my personal example? While in law school, I was in an accident (I was a passenger). While waiting for the insurance company to repay me, I got into trouble with my credit cards (all of my med expenses were on a card). It took me awhile to pay them off and I did so in chunks. On the phone, when I was making my last payment, the same company that had called me irresponsible for months said to me, “Now that this is over, let’s see if we can get you set up again.” They then offered to increase my limit by several thousand dollars. Scum. They knew exactly what they were doing. Fortunately, so did I – and I said no.

Do I think that everyone is irresponsible with a credit card? Clearly not. But credit card companies don’t make money on responsible folks. They make money on those that can’t make their payments – for whatever reason. And that’s exactly why they prey on college kids (ever been to campus the first week of school) and lure you in with “prizes” at fairs and the lot.

Grr. Drives me freaking mad.