CyberCypher
Guest
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| Posted: Sun Nov 21, 2004 6:00 am
Post subject: Revolve, revolver, revolving |
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An interesting departure from the Second Amendment.
From: THE PLASTIC TRAP
Soaring Interest Compounds Credit Card Pain for Millions
By PATRICK McGEEHAN http://tinyurl.com/45b7b
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Few consumer products today are as cherished or reviled as credit
cards. The typical household has eight cards with $7,500 on them.
People like Mr. Schwebel are known as "revolvers" in the industry
because they roll balances over from month to month, never paying in
full.
Without the 85 million Americans who revolve, card issuers would be
struggling to please their investors. But with them and the hefty
finance charges they accrue from the moment cashiers swipe their cards,
the industry is reaping record gains. Last year, card issuers made $2.5
billion a month in profit before taxes.
"I think it is generally understood that those that use the revolving
part of the credit card are kind of the sweet spot," said Mr. Yingling
of the bankers' association, who spoke on behalf of several of the
biggest issuers, including Citigroup, J. P. Morgan Chase and MBNA, all
of which declined to make executives available for interviews.
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