money minute
Time to burn your credit cards!
Americans are used to
credit cards and most
have at least one credit
card. When they go shop-
By William Reed
ping, they just use their
credit cards, since they
The credit card indus-
don’t have to pay cash
try is one of the nation’s
many feel as if they’re
most powerful and lu-
not spending their own
crative businesses and
money. Good financial
President Barack Obama
management for African
says his administration
Americans requires ac-
will push for more pro-
tively tracking credit card
tections for credit card
usage and considering it
consumers. After sum-
a portion of overall net
moning senior credit card
worth. When the econ-
industry execs to the
omy is good, people do
White House, the nation’s
not worry because they
consumer-in-chief said,
know they can pay in one
“The days of any-time,
month when the credit
any-reason rate hikes
card company sends
and late-fee traps have
them a bill. But now the
to end”.
economy is so bad, many
The stakes couldn’t
people can not pay for
be higher and the pur-
the total amount and pay
veyors of plastic don’t
just the minimum which
intend to be forced into
puts them in a 19 percent
financial submission. The
heading closer to fore- specifically to Blacks. House meeting on credit RushCard and “live the
to 24 percent high inter-
industry annually collects
closure bankruptcy while However, the high levels cards his company is a American Dream” re-
est rate category.
an estimated $3 trillion in
enriching lenders. of un-banked and un- symptom of the problem. quires an activation fee
A rule of thumb for
annual credit and debit
In 2001, 59 percent of der-banked Blacks have He claims to be solv- of $19.95, a daily conve-
credit card use in today’s
card transactions, plus
African American families spawn affinity and co- ing problems for under- nience fee of $1 (capped
economic times - if you
billions more in late fees
had credit cards, com- branded prepaid cards banked communities, at $10 a month) and a
can’t afford it, don’t buy
and other charges.
pared to 82 percent of marketed primarily to which often lack access $1.95 ATM cash with-
it.
America is a nation
White families. Although them. One example is top a bank account, but drawal fee.
William Reed – www.
propped up on credit
African American house- record industry mogul complaints are mounting It’s going to take more
BlackPressInternational.
card debt. The average
holds have lower rates of Russell Simmons’ Visa about the fee structure of than Obama taking credit
com
U.S. household carries
credit card ownership, Af- RushCard. Though Sim- his prepaid Visa Rush- card executives to the
more than $10,000 in
rican American cardhold- mons wasn’t in the White Card. To utilize Simmons’ White House woodshed.
credit card debt. Many
ers are more likely than
consumers have com-
Whites to have credit
plained about the high
card debt. Credit card
fees of credit card com-
debt has caused African
panies and the U.S.
American families to use
House has approved a
critical financial resources
bill that would stop credit
to pay mounting monthly
card issuers from impos-
interest payments instead
h4HEYWERE
ing arbitrary interest rate
of saving or acquiring as-
increases and penalties,
sets. Unfortunately, most
while halting certain bill-
of the debt African Ameri-
WONDERFULv
cans have accumulated

Dear Aunt Marie,
ing practices.
A credit card is a pre-
is used for items that
depreciate in value, such
I’m sorry you couldn’t make it to
approved loan with flex-
as cars, furniture, elec-
the funeral. Mama was such a
ible repayment options.
tronics, and appliances.
magnificent woman. The service that
It’s distinguished from Stinson Funeral Home prepared for her
other financial instru-
This is an indication that
was beautiful. You would have been
ments by the freedom it
blacks use credit inap-
so proud of the dignified home going
gives borrowers to deter-
propriately - to stretch
Stinson Funeral Home provided. Rest
mine the size of the loan
their incomes. Historic assured that our last memories of her
and the pace at which it
redlining by traditional are filled with love and comfort.
is repaid. Data collected
banks has left high-inter-
est credit cards as one of
Talk to you soon.
by the Federal Reserve
shows minorities most
the few easily accessible
sources of loans for mi-
Love always,
at risk of damaging their
norities.
Faye
financial futures due to
poor credit card manage-
Close to two mil-
ment. African American
lion African American S
tinson
&5.%2!,(/-%3
households, in particular
households have an-
*UNE7ILLIAMS
-ANAGER,ICENSED&UNERAL$IRECTOR
spend larger percentag-
nual incomes of at least
*OSEPH3TINSON#HAPELs7'RAND"LVDs0HONEs&AX
es of their incomes pay-
$75,000, but there are
comparatively few af-
3ULEE3TINSON#HAPELs-EYERSs0HONEs&AX
ing credit card and other
finity, co-branded and
3TINSON
$IGGS#HAPELs3&ORT3Ts0HONEs&AX
high interest rate debt,
reward cards targeted h!3TANDARDOF%XCELLENCE3ERVINGTHE#OMMUNITY3INCEv
The Michigan FrontPage • May 29, 2009 
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