Popular credit card company Discover already offers personal loans, students loans, and other banking services. Now it is poised to move into home equity loans, too.
The company purchased a student loan portfolio from Citigroup in 2011. Then in summer 2012 it purchased a home loans business from Tree.com and launched a successful home loans branch.
Discover hopes that offering student and home loans to its existing credit card users will increase profits and tap into a primed market that's already loyal to the company. It's finding the money to pay for these new ventures in profit it makes from credit cards, since credit cards comprise about 80% of the company's annual profit.
But for consumers, that means more loans will be made on the back of a system already skyrocketing in debt. While many of Discover's customers struggle with credit card debt now, in the future they may also owe the same company for their education and their home.
In essence, it's getting to the point where many people are owned by a bank. Their job, house, car, and even food aren't really theirs.
As a Kansas City bankruptcy lawyer I see this every day. Many people live paycheck to paycheck, and depend on credit to make ends meet or improve their lifestyle. But when things get out of hand, it can be terrifying how much control these credit companies have.
When the payments are late, these same companies that encourage their customers to take out more and more debt will turn on you in a heartbeat. They'll order their thugs to harass you and your family on the phone or sue you so they can take from your wages.
Fortunately, there is hope for consumers.
If you have credit card debt you can't pay, our Kansas City bankruptcy firm can help. You need someone on your side when you're up against these companies. Contact us today for a free appointment.