The dreaded Credit Crunch

The Professor gets a taste of it for himself:

In my mail today is a letter from Mr Andrew Rowe, a “consumer finance executive” at Bank of America, offering me “a major opportunity to consolidate your bills with a loan of up to $50,000 at competitive non-variable rates.” What’s more, “there’s never been a faster, easier way to get the extra cash you need to help pay off high-interest debt or to use however you decide.”

But wait, there’s more: “There is no collateral required, no application fee, and no annual fee.” And they’ll deposit the money to my checking account in as little as 10 minutes. So, like I said, apparently credit is still out there to be had, somewhere.

Of course, we don’t know how long ago B of A planned this particular offering, but judging by my own credit reports, and the fact that a different bank a day or two earlier offered to refinance the palatial estate at Surlywood for something like $40,000 more than it’s worth, I’d say that the industry is anxious to move any product on which it thinks it can get some actual return.

Or maybe not:

I tore the letter up and threw it away as usual, but I probably should have saved it as a historical document. There’ll be less of that kind of thing for a while, or I miss my guess.

We shall see. I’m watching my mail.





5 comments

  1. fillyjonk »

    6 October 2008 · 5:07 pm

    So the silver lining in all of this is that I may stop getting eighteen “pre-approved credit card offers” each day? (I attended three different colleges, each of which apparently gets a cut of the profits from their own, rah-rah Alma Mater credit cards…plus there are the Sigma Xi cards, the AAUW cards, the People Who Like Fuzzy Animals and Don’t Like To See Them Die From Habitat Fragmentation cards….)

    Maybe I won’t need to invest in a paper shredder after all.

  2. CGHill »

    6 October 2008 · 5:16 pm

    I have a shredder, and my only regret is that I didn’t buy it sooner.

  3. McGehee »

    6 October 2008 · 6:09 pm

    Those of us with a history of paying our bills will keep getting offers, and more of them. We’re the ones who will ultimately pull the financial sector out of this mess even if our taxes weren’t going to be used for a bailout.

  4. Dick Stanley »

    6 October 2008 · 10:29 pm

    Don’t be so sure about that. President Obama, after all, plans to tax the “rich,” which probably includes anyone who pays his bills.

  5. McGehee »

    7 October 2008 · 8:22 am

    He could get creative and earmark a percentage of the credit card interest rate toward those taxes. While forbidding the card issuers from raising interest rates to compensate. In fact, he’ll lower everyone’s interest rate to 0% unless they actually are able to make their payments.

    That’ll show those anti-deadbeats!

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