Credit Corporations vs. Consumers-The Great Stand

Many will write blogs and articles this time of year offering suggestions for financial New Year resolutions. I have composed such a blog and will most likely post within a few days; however since great change is in the air for the year 2009, I have decided to look ahead instead of looking back at 2008.

Within the past couple months, battle lines have been drawn, positions taken and economic philosophies declared-Capitalism vs. Socialism, Credit Cards vs. Cash, Good Debt vs. Bad Debt and now Credit Corporations vs. Consumers. You might find this a bit dramatic, but voices are sounding off and these voices could greatly affect the future state of our nation.

Finally, after many people with good credit scores, started complaining about credit corporations on December 18th legislation was passed to reduce the at-will credit abuse from credit corporations, no interest hikes, no double billing cycles and quicker notification in change of agreement from credit corporations. Sounds like a break, we consumers needed. Unfortunately we have to wait until July 2010 to see the benefits.

But the credit card corporations retaliated saying this is bad for the economy, since our economy is based on consumer spending and in event, creditors started closing consumer accounts, denying charges and issuing credit cards. Will there be no more credit for Americans? Have we lost our credibility?

This leaves Americans in a financial credit quagmire. Do we continue to drop our pants to indiscriminate fees and penalties of creditors, or do we go debt free, pay with cash and risk a greater free market meltdown? In laymen’s terms, do we continue to be abused, or stand up for our debt freedom and risk national consequences? Surprisingly, this problem is very feudal.

“Let them eat cake!” Marie Antoinette historically yelled to the revolting peasants. Rising Bolsheviks shot and killed the Czar and carried Russia into a worker’s state-Communism. And to travel further back into time, King Alaric of the Visigoths (ironically a Barbarian, but not the one made famous by Capital One) freed the western world from the domination of the Romans, only to plunge Europe into the Dark Ages. What is the cost of economic freedom and are we prepared to take that journey?

History tells us, plunging into sudden change-bad idea, but there is an obvious need for change. What plagues American today, is not the foundation of our economy, but greed and corruption. Our goal should not be to become a cash only social society, but a smarter and wiser one. There is absolutely no need for creditors to make an obscene amount of money off consumers and no need for consumers to overspend on credit. Our goal should be no more jets for corporate CEOs and greater fiscal responsibility for Middle Americans. Heck, we are a nation founded on equality for all, isn’t it about time we practice what we preach?

The debt we face now is more than financial. We are indebted to our future.