Merikan Express

I'm taken aback by American Express willing to shell out $300 bucks if you walk away as a customer.

First, you gotta pay off your balance like a good debtor, then let your card expire, and presumably three bills show up sometime later in your mailbox.

Think of it this way -- a person who has never once defaulted on their American Express bill is now so likely to do so that they think you're worth three hundred bucks to walk away and offset your potential to default. That is, you are already in default by $300 bucks, according to the company. That's your assigned risk, and they want to eliminate that risk, so see ya.

And oh, without knowing much about these sorts of things, my gut feeling tells me that your FICO score will be lowered by you dropping your credit line with American Express. Therefore, the cost of borrowing money elsewhere will increase. And who knows...maybe the long-term incremental cost of borrowing will be more than, say...300 bucks? Hmmm? A guess, maybe?

What? You say you're done borrowing? Yeah! Ha! Right! We live in an economy that can only function by borrowing, by going into debt. Tell me you're gonna pay cash for that new $51,000 LS460.