There is a message that you will hear me say countless times on this site you should only use credit cards if you’re in a situation where you can pay your balance in full every month. There are a few exceptions (e.g. there’s a good 0% introductory interest rate, etc.). But even when you have a 0% introductory interest rate, it’s still a huge risk because you’ll undeniably forget when that period ends and begin paying interest on a large balance and the interest and fees will easily negate any rewards you’ve accumulated.
With that being said, there is unbelievable news making its rounds on the web today…Chase is forgiving all credit card debit in Canada.
WHY IS CHASE FORGIVING THE DEBT?
Chase issued two cards in Canada: the Amazon.ca Rewards Visa and the Marriott Rewards Premier Visa, however, the bank retired both cards last year and said it’s wiping out cardholders’ debt to complete its exit from the Canadian credit card market.
Typically, when banks find themselves in a situation that is not profitable, they will sell the debt to a third-party debt collector which allows the bank to recoup a portion of the cash owed, however, Chase made the call to forgive the debt and get out ASAP.
While they haven’t said officially, we don’t know just how much debt they’re forgiving but I do assume that it’s a considerable amount.
CBC interviewed countless people who were, understandably, shocked but happy.
“It’s crazy, this stuff doesn’t happen with credit cards. Credit cards are horror stories,” said a 55 year-old, long-haul truck driver that owes more than $6,000.
“It’s kind of like I’m being rewarded for my irresponsibility,” said a 24-year-old university student who’s being forgiven a $1,300 debt.
I’m not sure what to think about this story but one thing is clear, credit card debt is big business. I do not claim to know any details about Chase’s internal finances but it says a lot when a bank, essentially, says…we’ve run the numbers and although money is owed to us, the easiest way out of this situation is for everyone to go their separate ways and just forget it ever happened.
It’s not often we hear positive stories about credit card debt. Although you may be wishing you lived in Canada and had racked up credit card debt, I can assure you that the moral of this story is not to rack up debt in the hopes that it will be forgiven.
What do you make of this story?