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Highlands Today

Credit Card Blues

Companies Sue 3 County Residents

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By Chris  Butler | Highlands Today

Published: March 26, 2007

SEBRING — It's a problem few are apparently willing to discuss and even fewer are willing to admit to – credit card debt.

A search through the civil lawsuits filed at the Highlands County Courthouse last week revealed lawsuits against three separate county residents for failing to pay in excess of around $20,000.

Primerica Financial Services Regional Vice-President Ginger Carlisle said from her Sebring office that she's not the least bit surprised.

Carlisle said part of her job is to educate the public about the many dangers associated with credit card debt.

"We've definitely noticed an increase in the number of people owing large sums of money to credit card companies," Carlisle said.

In one of the three lawsuits, MBNA America is suing a Highlands County woman for $22,000 for not paying even a minimum monthly payment on an account she opened in December 2003.

The lawsuit said arbitrators in the case issued an award in MBNA's behalf for the $22,000 sum, plus interest and costs.

Attempts to talk to the plaintiff's Jacksonville-based attorney were unsuccessful. The woman's phone line was abruptly disconnected shortly after Highlands Today identified itself to the attorney. She did not answer the phone during a second attempt to call her seconds later.

At least two financial planning experts in Highlands County said they couldn't talk because they were busy with tax season work. They also said they were strictly regulated as to what they can and cannot say about what advice they offer their clients.

One said he was simply hesitant to discuss the issue of credit card debts to begin with.

In another lawsuit, Target National Bank/Visa is suing another Highlands County woman for more than $21,000 plus credit card interest for not paying her minimum monthly statement.

The third lawsuit involves Citibank suing another Highlands County resident for almost $17,000 plus interest.

The names of the three Highlands County residents being sued are not being released by Highlands Today.

Attempts to reach the other attorneys for the other two credit card companies were also unsuccessful.

'So Many Forces Working Against You'

Carlisle said many people in debt often fail to realize the difference between what she said was simple and compound interest rates. Compound interest rates accumulate based on whatever amount of debt one owes, and not their original amount.

"There are so many forces working so hard against you in these situations. As a result, it's extremely hard to get out," Carlisle said.

She also said it's a misconception that people getting themselves into debt did so as a result of being "on a shopping spree."

Carlisle said people most often get into debt because they have no emergency fund for life's many surprises.

"I guarantee you something unexpected in your life is going to happen and when it does people usually go to their credit card," she said, offering the example of one waking up to find four flat tires on their car and having no choice but to pay by "charging it."

"Sometimes people are so in deep financially that they tell themselves it's OK to buy that plasma TV because they're so deep in debt anyway that it really doesn't matter. But they don't understand common interest. It's a vicious cycle and banks love to refinance people into oblivion," she said.

Carlisle also said the same older generation of Americans who once lived frugally during the Great Depression now have credit card debts of their own.

"They no longer have to face mortgages, but have many new medication bills and don't exactly plan for that. They often use credit cards to make ends meet," she said.

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