Credit Card Heroes?

Some business analysts and consumer groups are hailing a new credit card plan by JPMorgan Chase as a means for customers to keep a better handle on debt. I think the new Chase Blueprint card is merely a ploy to get consumers to put more on their card that they really can’t afford to pay back.

The unique feature of the card is that it allows customers to avoid paying interest on everyday items such as groceries. The kicker, though, is that cardholders must designate what constitutes everyday items in advance and that amount still must be paid in full every month to avoid interest fees. Meanwhile, debt keeps racking up on other charged goods.

Such a plan gives customers a false sense of security. Few would choose to charge food if they had enough cash in their bank account. Odds are they won’t have the required amount a month later when the bill comes due.

I speak from experience. In the 1990s I put groceries on a credit card month after month — along with clothes, gasoline, dining out and furniture. Pretty soon I found myself $25,000 in debt.

If lenders really wanted to help strapped Americans they wouldn’t have repeatedly raised interest rates during the past year.