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Minimum Credit Card Payments Doubling


kapkomet
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You've got that absolutely right, Kap. When I heard about this the other day I immediately thought thought tthat this out of nowhere doubling of the minimum combined with the tougher restrictions on bankruptcy filings (unless you're a corporation, of course... :angry: :angry: :angry: ) would put a serious pinch on a whole lot of people.

 

I'm esure the rest of the credit card companies are right be hihind the big 3 on this moove as well, so all of us who keep a balance on our crads are going to be screwed. Middle class America just keeps taking it up the ass.

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QUOTE(Dick Allen @ Jul 21, 2005 -> 11:05 AM)
If you're making minimum payments on your credit card, you have no business owning one.

Living by that credo is a lot easier said than done, though. My family lives quite modestly and we still rack up debt. My fault, I assume, for living in a business and high tech corridor and only pulling down the wages of an academician.

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QUOTE(FlaSoxxJim @ Jul 21, 2005 -> 11:11 AM)
Living by that credo is a lot easier said than done, though.  My family lives quite modestly and we still rack up debt.  My fault, I assume, for living in a business and high tech corridor and only pulling down the wages of an academician.

 

 

 

Don't you DARE make excuses to some screenname on a message board about your life.

 

Let them wallow in the s*** they stew. Passing judgement qualifies for karma payback in my book.

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QUOTE(Dick Allen @ Jul 21, 2005 -> 11:05 AM)
If you're making minimum payments on your credit card, you have no business owning one.

 

 

I don't know about that, but if you only make the minimum payment, you sure as hell will never pay off the balance. We always try to at least pay two and half times the minimum.

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QUOTE(LosMediasBlancas @ Jul 21, 2005 -> 11:23 AM)
I don't know about that, but if you only make the minimum payment, you sure as hell will never pay off the balance.   We always try to at least pay two and half times the minimum.

 

Us too (if we can a little more that as well). We don't typically carry this much balance, but with the wedding, it racked up a little more than we expected. With his new union job and most of the wedding stuff paid off (or we have cash reserved to pay for those items), we hope to payoff as soon as possible after the wedding.

Edited by Queen Prawn
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QUOTE(Dick Allen @ Jul 21, 2005 -> 09:05 AM)
If you're making minimum payments on your credit card, you have no business owning one.

You're completely right, but it's not only minimum payments.

 

On almost any credit card given out to "normal" people, the interest rates even if you're making 2, 2.5 times the minimum payments are just incredibly excessive.

 

As far as I'm concerned...if I were to invest money in the stock market or in any other financial institution right now, the highest percentage return on my investment I could imagine getting would be like 7-8%, and that's if I did everything right.

 

In other words, if I have any balance at all on a credit card, and I'm paying more than that amount, then it's an absolute guarantee that the credit company will turn a profit.

 

This number does go up and down with interest rates, but overall, it just strikes me as a mistake to pay more than 10% interest on anything for any extended period of time. The increase in price is just remarkable. Factors of 2-3 over short time periods.

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I am going to play the devils advocate and say that increasing the monthly payments is a good thing. The sooner people pay these things off the better. If anything all that will do is cut into the bottom lines of credit card companies, as they can't make the compounding interest off of the poorer card holders that they used to be able to do.

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QUOTE(southsider2k5 @ Jul 21, 2005 -> 04:36 PM)
I am going to play the devils advocate and say that increasing the monthly payments is a good thing.  The sooner people pay these things off the better.  If anything all that will do is cut into the bottom lines of credit card companies, as they can't make the compounding interest off of the poorer card holders that they used to be able to do.

It is a good thing, in the long run, but people are going to get their nuts squashed in the short term.

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My debt isn't that bad. It's worse during the summer, because I only get paid during 9 mos of the year (but have to work all year round--suckage). So, it's a struggle to make ends meet. This sucks, and I agree it should have had more warning and been gradual.

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QUOTE(kapkomet @ Jul 21, 2005 -> 09:41 AM)
Credit Card Payments Going Up

 

Holy s***.

 

Combine this with the new bankruptcy laws going into effect right at the same time, there are some people's ass cheeks gonna be squeezed here.

 

 

I couldn't care less. I pay my bill in full every month. No wonder my credit score is so high.

 

:)

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QUOTE(kapkomet @ Jul 21, 2005 -> 11:21 AM)
It is a good thing, in the long run, but people are going to get their nuts squashed in the short term.

 

 

Allowing high interest debt to fester like that is begging for trouble. Priority one should be eliminating it.

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I'm with Nuke.

 

We try to pay off our credit card bills every month. I hate giving the cc company anymore money than I have to.

 

What's really great is when one of them offers no interest for X amount of months. Then I just transfer any balances I do have over to that one and pay it off with no worry of interest charges.

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QUOTE(Iwritecode @ Jul 21, 2005 -> 12:20 PM)
I'm with Nuke.

 

We try to pay off our credit card bills every month. I hate giving the cc company anymore money than I have to.

 

What's really great is when one of them offers no interest for X amount of months. Then I just transfer any balances I do have over to that one and pay it off with no worry of interest charges.

Personally I have a little bit more fun with them myself.

 

Thus far, I've paid mine off every month since I first got one (6-7 years ago)...and I'm on a good enough card now that I get cash back/points for purchases. In other words, my credit card company has paid me roughly $300 in the last year just because I use the card instead of carrying cash.

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QUOTE(Iwritecode @ Jul 21, 2005 -> 02:20 PM)
I'm with Nuke.

We try to pay off our credit card bills every month. I hate giving the cc company anymore money than I have to.

 

 

We pay ours off every month.. and with Discover giving cash back.. AMEX giveing Jim golf points.. and Chase giving us airline miles.. we can't complain. I use credit cards for everything unless I absolutely have to use cash.

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QUOTE(YASNY @ Jul 21, 2005 -> 12:25 PM)
They should have given people 6 months notice and went from 2% to 3% ... with notification that in another six months it would be 4%.  This just ain't right.  There will be a lot of people put in a major bind.

 

That's my issue with this. This is going to blow a 200 dollar hole in an already overstretched budget with myself.

 

Why?

 

Because I was stupid enough to think I could find a well enough paying job in my industry by working hard and paying my dues.

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QUOTE(YASNY @ Jul 21, 2005 -> 11:25 AM)
They should have given people 6 months notice and went from 2% to 3% ... with notification that in another six months it would be 4%.  This just ain't right.  There will be a lot of people put in a major bind.

That's putting it mildly. I notice in the link there is a survey and 39% of the respondents admitted to a credit card debt of over $5,000. 11% said they were over $20,000 in debt. Maybe this will be a way to burst the housing bubble, as surely this will lead to at least some foreclosures. This is gouging and yes the middle class takes it you know where once again.
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QUOTE(Yossarian @ Jul 21, 2005 -> 03:24 PM)
That's putting it mildly. I notice in the link there is a survey and 39% of the respondents admitted to a credit card debt of over $5,000.  11% said they were over $20,000 in debt. Maybe this will be a way to burst the housing bubble, as surely this will lead to at least some foreclosures. This is gouging and yes the middle class takes it you know where once again.

 

 

The middle class wouldn't be taking it anywhere if they lived within their means. Nobody is putting a gun to these people's heads and forcing them to buy that 4 dollar latte every morning or that SUV that costs 70 bucks a week to fill up with gas or have that 992346312451235 inch flat panel TV on the wall.

 

:violin

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