Subprime lending on rise for autos, credit cards

  • Article by: JENNIFER BJORHUS , Star Tribune
  • Updated: July 10, 2012 - 11:32 PM

But a survey shows that many banks remain cautious about lending to those with damaged credit histories.

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flatstanleyJul. 11, 1211:59 AM

This is my personal opinion but one of the worst things to happen to the US over the past 20 years is that the middle class has been duped into trading better wages for easier access to credit. People don't save money anymore and we have horrible predatory lending practices. We have far too many people buying items with credit which creates the false illusion that they can afford these purchases. It's all predicated on the assumption that there will be zero changes to their income or debts and then when they get sick, lose their job, or have unexpected debt they can't afford to pay off that credit card balance. Then they sink further into debt until they are in a hole they have no hope of getting out of. Increase wages and make it harder for people to qualify for credit cards.

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johndoe123Jul. 11, 1212:55 PM

Subprime lending is rising because the subprime market has been redefined to basically mean everyone but the very top of the economic food chain. Once deemed second tier - now the market only sees Prime and Subprime, with the negative connotations and financial disadvantages that go along with it chasing the latter category.

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debbiedownerJul. 11, 12 8:31 PM

"People don't save money anymore" One of the biggest lies being told by the left. Simple research proves it wrong and they know it.

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AirForceGuyJul. 11, 12 8:49 PM

@flatstanley You are exactly right. Sadly, though, Americans of all classes feel they have a right to everything their hearts desire because it's beat into our heads from birth that we MUST consume in order to be valued. The entire premise of Americanism is predicated on the fundamental belief that WE, as individuals, are the most important person in the world. Couple that with rapidly declining quality in education (again, that sense of entitlement that everyone should allowed get a degree...so they can make more money...to buy nicer things...) and a total absence of critical thinking ability has led to this. 95% of everyone who owns a house knows they can't afford it. If you don't have the cash to liquidate the debt, then it means you can't afford it. But, people have been so fervently taught to reject the humiliation of NOT BEING ABLE TO AFFORD IT, that predatory lending practices that permit people who not only don't make enough money to pay off the debt, but who also don't pay the debts they DO have to still be allowed to get money to buy nice things. You're right on. Easier access to credit has made many people's lives better, but now it's just absurd who is being permitted to get loans. I personally see people who make less money than me and have larger expenses (they have kids I don't) who have purchased nicer cars and/or have purchased HOMES. This is an atrocity and should be outlawed, but as long as people are making money, it will never stop...which is the fundamental flaw of capitalism in my opinion.

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debbiedownerJul. 11, 12 9:17 PM

"as long as people are making money, it will never stop...which is the fundamental flaw of capitalism in my opinion".

So your suggestion is that no one should make any money. I like it. Have the government hand out rations of food, clothing and shelter and everyone will be taken care of. Beautiful.

Question: Why would you join the air force to defend a country you despise so much?

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