by KYW's Salil Gutt
The country gorged on debt and is now paying the price. From the little guy to supposedly savvy financial firms debt was there for the taking and they did. The result. A credit crunch, home foreclosures and runaway household expenses for health and energy.
But your ever vigilant card companies continue to look at newer ways to pump up fees while taking you to the cleaners. And they have a new one. Participate at your peril.
401 K debit cards provide consumers with plastic to raid their retirement savings now. Your card gives you access to a loan processing service and you are charged an interest rate which compensates this middle man. A wise man called these cards economic poison. Even government regulators have spoken out against this product and some U.S. senators have introduced legislation to ban
401 debit cards.
The most responsible thing an employer can do is not allow these cards to be used with their company' s retirement plans.
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