# U.S. Credit Card Payment Hike **URL:** \ **Category:** The BBQ Pit\ **Created:** [September 13, 2005, 12:32am UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362 "2005-09-13T00:32:41Z")\ **Posts on this page:** 10\ **Page:** 2
**Author:** ![SusanStoHelit](https://avatars.discourse-cdn.com/v4/letter/s/7ab992/32.png) [@SusanStoHelit](https://boards.straightdope.com/u/SusanStoHelit)\ **Post date:** [September 13, 2005, 11:09pm UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362/21 "2005-09-13T23:09:22Z")
> [@SusanStoHelit](#): > > Most credit counseling programs tell you to put as much as you can toward the highest-interest credit cards first. If you have $500/month to pay toward debt, $200 of which is needed for the minimum payments at 2%, you can put the extra $300 toward the card with the 23% interest and let the card with the 11% interest sit for another month. If you have to make the 4% payments to everything, that extra 2% will be taken out of your budgeted $500. Maybe it’s only an extra $50 you won’t be able to put toward the higher interest card, but that’s an extra $600/year. > > Who is this law benifiting? :smack: My math skills obviously needs work. If 2% min payments is $200, then 4% min payments would be $400, wouldn’t it? That would suck even more. ---
**Author:** ![Bryan\_Ekers](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bryan_ekers/32/183_2.png) [@Bryan\_Ekers](https://boards.straightdope.com/u/Bryan_Ekers)\ **Post date:** [September 13, 2005, 11:11pm UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362/22 "2005-09-13T23:11:05Z")
> [@SusanStoHelit](#): > > Who is this law benifiting? Ultimately, people who are getting credit cards for the first time, because they’ll be less able to “stealth” (i.e. pay only the minimum) their way into crippling debt. It may suck for anyone trying to pay off an existing debt bit by bit, but it was the loosening of the repayment rules that created this huge consumer debt load in the first place, starting to hurt the economy as cardholders spend more of their income on interest payments than purchases or investments. ---
**Author:** ![lorinada](https://avatars.discourse-cdn.com/v4/letter/l/b5e925/32.png) [@lorinada](https://boards.straightdope.com/u/lorinada)\ **Post date:** [September 14, 2005, 12:37am UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362/23 "2005-09-14T00:37:21Z")
I never realized the minimum amount was set by the government, either. If that’s true, then I wonder why my son just got a notice from one of his credit cards that told him he would no longer have a minimum due becuase of his payment history? _dashes of to read fine print because bless his heart he has ADD and refuses to take his meds_ ---
**Author:** ![ShibbOleth](https://avatars.discourse-cdn.com/v4/letter/s/848f3c/32.png) [@ShibbOleth](https://boards.straightdope.com/u/ShibbOleth)\ **Post date:** [September 14, 2005, 2:17am UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362/24 "2005-09-14T02:17:23Z")
> [@romansperson](#): > > Here’s a little bit more info on this: > > [http://www.themonroetimes.com/o0909pcr.htm](http://www.themonroetimes.com/o0909pcr.htm) > > Apparently if you are already in credit counseling, the minimum payment hikes won’t affect you, but it will affect almost everyone else by the end of the year. The payment hikes are in response to pressure from federal Office of the Comptroller of Currency. Just out of curiosity, does anyone know whether or not the US Government actually maintains a minimum payment on their outstanding debt? What’s good for the goose and all. _If_ this is true it could really screw me badly. I have a credit card that is either 0 or 1% interest (I forget which) for the life of that transaction. I don’t use the card for anything else to make sure it doesn’t shift to a higher interest rate. I used it to consolidate other higher interest debt. I’ve been regularly paying it down at 2 or 3x, depending on my capacity at any given time. But if for some reason I had a cashflow issue in a given month I’d really prefer not to be forced to pay 2x any given minimum. This could theoretically cause me to late pay which could also, I’m sure, result in a huge rate change which could set me in default. I really wish that this REPUBLICAN government would quit looking out for my best interests. I thought that was the Democrat’s job. ---
**Author:** ![elmwood](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/elmwood/32/3060_2.png) [@elmwood](https://boards.straightdope.com/u/elmwood)\ **Post date:** [September 14, 2005, 2:25am UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362/25 "2005-09-14T02:25:37Z")
I’m not in favor of legislation that can hurt consumers, but in this case I’m all for it, for the reasons other posters have stated. I can’t believe that someone can get tens and thousands of dollars into credit card debt. I have credit cards, but they’re for emergencies, not for everyday use. I’ve got a Common Assets card, and used it once at a diner to activate it. I’m getting a gas rebate card, and using it gor gasoline only. That’s all. My only debt is my mortgage. Financial institutions must hate me. ---
**Author:** ![RickJay](https://avatars.discourse-cdn.com/v4/letter/r/bb73d2/32.png) [@RickJay](https://boards.straightdope.com/u/RickJay)\ **Post date:** [September 14, 2005, 2:40am UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362/26 "2005-09-14T02:40:37Z")
> [@iamthewalrus(:3=](#): > > IIRC, the minimum payment on most credit cards is the greater of $20 or 2% of the balance. If you’re making the minimum payment and getting charged the 20-30% “really crappy rate” that you get stuck with on credit cards. odds are that you’ll _never_ pay it off. The interest is actually accumulating faster than you’re paying it off. 2% monthly is 26.8% a year. I’ve never heard of a credit card with an interest rate that high; the highest I’ve ever seen is 19.99. Do they go higher? Mrs.r RickJay and I used to owe a LOT of credit card debt, as it ended up being the only way to pay for her education, so I have seena lot of credit card bills. (Fortunately, we were able to consolidate at 4.75%.) ---
**Author:** ![Corrvin](https://avatars.discourse-cdn.com/v4/letter/c/bbce88/32.png) [@Corrvin](https://boards.straightdope.com/u/Corrvin)\ **Post date:** [September 14, 2005, 2:49am UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362/27 "2005-09-14T02:49:26Z")
> [@elmwood](#): > > I’m not in favor of legislation that can hurt consumers, but in this case I’m all for it, for the reasons other posters have stated. > > I can’t believe that someone can get tens and thousands of dollars into credit card debt. Car wreck (must pay deductible to get car fixed; the higher your deductible, the cheaper your insurance). Dental bills (even with insurance, they only pay half of most larger procedures, leaving you to handle the other half, and if you don’t have insurance you handle the whole thing). Bills and groceries when the only person working in your family has had to go into the hospital and you have no savings because you just graduated from college and you’re still looking for a job. I’m genuinely grateful for the credit I had in my early 20’s; it kept us from being homeless and hungry, and from having to ask others for help. On the other hand, now that I’m paying for it, I almost wish I had… you know? Corr ---
**Author:** ![Mr.Blue\_Sky](https://avatars.discourse-cdn.com/v4/letter/m/d26b3c/32.png) [@Mr.Blue\_Sky](https://boards.straightdope.com/u/Mr.Blue_Sky)\ **Post date:** [September 14, 2005, 2:58am UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362/28 "2005-09-14T02:58:05Z")
> [@RickJay](#): > > 2% monthly is 26.8% a year. I’ve never heard of a credit card with an interest rate that high; the highest I’ve ever seen is 19.99. Do they go higher? I’ve seen rates as high as 29% on a card issued by a major US bank. That rate is a punishment for making a late payment. ---
**Author:** ![Zebra](https://avatars.discourse-cdn.com/v4/letter/z/c0e974/32.png) [@Zebra](https://boards.straightdope.com/u/Zebra)\ **Post date:** [September 14, 2005, 5:02am UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362/29 "2005-09-14T05:02:23Z")
Believe me **Corvin** , when this hits me, it is going to hurt like a mutherfucker. I’ve been in a money strain for a few years now and I make several payments a month. So when this happens it’s Kraft Mac and Cheese and for special occasions, Kraft Mac and Cheese with a cut up hot dog. It will be sucky. But if this helps keep someone from being as stupid as me, then I’m all for it. In fact, they should have called this Zebra’s Law. Of course if the government would do something about the interest rates, that would be a big help too. ---
**Author:** ![SusanStoHelit](https://avatars.discourse-cdn.com/v4/letter/s/7ab992/32.png) [@SusanStoHelit](https://boards.straightdope.com/u/SusanStoHelit)\ **Post date:** [September 14, 2005, 6:23pm UTC](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362/30 "2005-09-14T18:23:24Z")
**Corvin** , if more than 1/3 of your income is going toward debt, I’m pretty sure you’d qualify for the free credit counseling services. Once you’re in a payment plan, the min payment hike wouldn’t affect you. [Previous page](https://boards.straightdope.com/t/u-s-credit-card-payment-hike/321362.md?page=1)