: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.
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.
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
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.
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.
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%.)
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
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.
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.
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.