Paid Up Credit Cards

What would happen if we all paid off our credit card debt?

(Starve The Beast Strategy)

1) We'd end up with more money to spend on stuff we want instead of interest.
     (Great for the economy and jobs.)

2) The credit card companies would make less profit.
     (Bad for them and for anyone who invested in them.)

     I would expect, if the credit card companies lost  interest income, they would go to Washington and  try to get money from the taxpayers because they  are too big to fail.

BEEN THERE-DONE THAT.

(I think another bailout would tick off voters enough to default on  their credit card  debt.  Credit card debt is unsecured, isn't it?)

If the  banks (credit card companies) started to fail, there would be a big sell off of thier stock because their stock would be a bad investment. Retirement funds would be impacted for those not paying attention.

The only  recourse the credit card companies would have is to raise their interest rates on any of the customers (suckers) they have left.. but you know where that leads to... fewer customers, less income for them.  Jobs will be lost in the financial sector. (But who really feels good about working for a company that sucks as much money as they can from their customers?)

Some of the credit  card companies just might try to suck customers from their competitors to  survive by offering lower interest rates.  There could be a feeding frenzy as bank after bank fed upon themselves by lowering interest rates?  They'd almost have to lower interest rates because the momentum towards paid off credit cards would already be in place.

I would expect the biggest credit card companies would be most affected by this loss of interest revenue.

As more and more people paid off their credit card debt, they would have more money and could actually start a savings account!

WOW!  This would be GREAT for the banks because they could loan more money and make a profit that way.  They could loan money for mortgages, new businesses, and to help certain industries survive seasonal money crunches until their profits come in to  pay off their loans.. (Inventors, Christmas gift companies, farmers, fireworks companies.)

As more mortgage money becomes available, more homes and businesses would be built... MORE JOBS!,

More Homes would  be built to provide a better quality of life for more people. Banks would get rich in a good way and working for them would be honorable.

If I look at our currency, one side of the bill seems reserved for good and the other side for evil?

Hmm, I only have $20's in my wallet...

Hey, it has "In God We Trust" on one side over a picture of the White House.  Hmm, seems the designer wanted God there. Was Andrew Jackson considered a bad guy?