Your credit card payment just doubled

Discussion in 'Current Events' started by ScreamingEagle, May 16, 2005.

  1. ScreamingEagle
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    ScreamingEagle Gold Member

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    So if you got $5,000 in credit card debt and your min pmt is $100 your monthly payment will now become $200! That's a pretty serious increase - especially if you've been budgeting tightly or you got high balances.

    How do the credit card companies get away with this? Didn't people accept and charge on their cards knowing that there would be only a 2% min pmt? (who on earth can read the tons of fine print?) What if banks just decided to double your mortgage payments? Maybe we need to read the fine print on our mortages too?
     
  2. freeandfun1
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    freeandfun1 VIP Member

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    If you're that bad off, you're in trouble. If all one can afford to pay on a debt is 2% of the debt, then they shouldn't get in debt in the first place.

    My credit card payments didn't double, because I don't maintain a balance. If I can't afford it... guess what... I DON'T buy it.
     
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  3. freeandfun1
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    freeandfun1 VIP Member

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    Mortgages are set on a defined amortization schedule. Credit cards are REVOLVING credit. HUGE difference.
     
  4. GotZoom
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    GotZoom Senior Member

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    This, right after the new Bankruptcy law changes - which were pushed by the CC companies so they couldn't be included so easily - are going to put a lot people in some serious trouble.

    They can change anything they want to, anytime they want to.

    You are right - Who reads all that find print.

    Shameful.
     
  5. 5stringJeff
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    5stringJeff Senior Member

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    Frankly, it's great news, both for the CC companies and the cardholders.

    The companies get their money quicker.

    The cardholders gets out of debt quicker!
     
  6. GotZoom
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    GotZoom Senior Member

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    :beer:
     
  7. ScreamingEagle
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    ScreamingEagle Gold Member

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    I'm not personally that bad off but there are a LOT of Americans who live from paycheck to paycheck and another $100 to $200 payment per month is going to cause problems.

    I believe I've heard the average credit card debt is about $7,000.
     
  8. 5stringJeff
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    5stringJeff Senior Member

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    A lot of Americans should consider selling stuff they don't need. That sounds harsh, but they've obviously bought a bunch of stuff on credit; if they can't afford to keep it, they should sell it to liquidate the funds.
     
  9. ScreamingEagle
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    ScreamingEagle Gold Member

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    Please explain the difference regarding min pmt. I thought revolving credit has to do with how the payments are computed based upon the balance.

    However, changing the terms of the payment is another thing...what if your credit card company just decided arbitrarily to increase your rate from 10% to 20%? A minimum payment rate kinda falls into the same category, doesn't it?

    Talk about jacking around the American public.
     
  10. GotZoom
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    GotZoom Senior Member

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    Fixed rate mortgages is one percentage rate and it doesn't change. There are all kinds of mortgages that do different things; Prime plus 2 percent, interest only, etc.

    The CC companies can do whatever they want, as long as it is in their fine print. They can raise your rate to un-godly high amounts (I have seen 33%) if you are even one day late with your payment.

     

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