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Minimum Payment Doubles for Credit cards


jjinva
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Theoretically it's good, but I think lots of people will be hurt. What the articel doesn't touch on is the insidious practice of CC companies cutting your credit limit, sometimes even below your balance ( B/A did that to me, thank you very little!), which makes for a bigger crunch on your credt, both real and FICO-score related.

I always aim to pay the interest and add a set amount to principal, so I am comfortable with this switch. But I think it will hasten a " credit crisis."

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Theoretically it's good, but I think lots of people will be hurt. What the articel doesn't touch on is the insidious practice of CC companies cutting your credit limit, sometimes even below your balance ( B/A did that to me, thank you very little!), which makes for a bigger crunch on your credt, both real and FICO-score related.

I always aim to pay the interest and add a set amount to principal, so I am comfortable with this switch. But I think it will hasten a " credit crisis."

The old Discover (back when it was still Sears) did that to me - went from $6K CL to $300 below my balance THEN started smacking me with overlimit fees, and on top of penalty interest I ended up burning them.

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Much ado about nothing, I think

This change is really just placing the “minimum payment” amounts BACK where they were just a few years ago (before the CC companies decided to lower them).

Just one more for the list of many reasons not to have credit cards in the first place – you’ve got a better chance of striking it rich in Vegas or hitting the PowerBall than ever beating the CC companies at their own game…they build their big buildings and pay their executives those seven figure incomes on the backs of those who think the sun rises and sets based on what kind of “card” they have in their wallet.

Merry Debt Free Christmas!!! :)

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Although the Fed is making the rules to double the minimum payments, the creditors aren't making a lot of balking noises over it. I think I know why: With the new BK laws, people who can't pay the minimums will be forced into repayment plans guaranteeing that a court makes a consumer repay most, if not all of it.

On the brighter side, people are moving away from credit cards anyways. This year is the first year that the use of debit cards exceeded the use of credit cards. I hope that trend continues. Way too many people overuse credit cards.

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