September 16, 2012
Revenge of the Deadbeats

We’ve heard a lot of moaning these past days over the anniversary of Occupy Wall Street. Sure, it was fun while it lasted — but you can’t change the world without an agenda, without leaders, without structure, organization, bureaucracy.

And yet out of this anarchy has just come an enormously useful handbook — by anonymous authors of course — called The Debt Resistors Operations Manual. It is available — free of course — here. (h/t to Naked Capitalism.)


Credit card companies don’t mind if you’re late paying your bill or if you maintain a balance, as long as you go on paying your monthly minimum. Cardholders who never carry balances on their cards have long been known inside the industry as “deadbeats,” money-losers. Since almost all of the industry’s profits come from late fees and interest rate penalties, it depends on your slipping up.

This is why monthly statements are intentionally designed to be confusing. If they change the design of your statement — say, by moving a box to the left, or making the print a little smaller — in such a way as to cause even one cardholder out of a thousand to misunderstand and miss a payment, that’s millions of dollars in additional profit for them. In the past they would trip up consumers by intentionally making the due date fall on a Sunday or a holiday. This enabled them to extract even more from late fees, the whole time insisting it was all your fault…

Medical debt is debt that individuals accrue when they are charged, but don’t or can’t yet pay for, out-of-pocket health-care-related expenses charged by the hospital, clinic or doctor (provider). As soon as you pull out the plastic and put it on your credit card — something strongly advised against when trying to manage medical bills — it becomes personal or consumer debt…

In addition to making sure you receive coverage that you’re eligible for, avoid putting medical bills on your credit card. Doing so converts your medical expenses to consumer debt, which puts you in an even worse place. Having credit card debt instead of medical debt likely means greater fees and penalties, and greater difficulty securing a job or mortgage.



Posted by Jerome Doolittle at September 16, 2012 09:23 PM
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This is News You Can Use, all right. A retiree who is my neighbor is recovering from cancer but not from the credit company's collection Nazis. His hopes of a peaceful retirement are essentially dead.

Posted by: PSymbol on September 17, 2012 12:56 PM
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