Minimum payment to double on credit cards

[neumanns]

Perhap's I'm the only or last one who did not know. But apperantly CC minimum payment's are going from 2% to 4% this year. <br /><br />Wow...That sure changes thing's around my place.

 

[ndemge]

Re: Minimum payment to double on credit cards

most credit card companies had the min set so people with high balances would never go out of debt. Paying min on a few $K balance will take like 10 years.

 

[vipzach]

Re: Minimum payment to double on credit cards

Noel is right, the companies had the minimum set so low that you would almost never pay it off. I think it was a federal law that mandated the change. <br /><br />I know you put a frown on there, but I think it is a good thing!

 

[neumanns]

Re: Minimum payment to double on credit cards

I hear ya noel, and we have always paid more than minimum around our houshold and a large lump on them at tax time. But over the course of the year we always spent them back up.<br /><br />We recently made the commitment to quite using them and work towards getting them paid off once and forever, it's gonna take us about two years to finish. <br /><br />And upon quick analysis we will be able to stick with our plan. However I'll bet I'm not the only one around here with some CC debt. And although we paid more on a monthly basis than minumum it was nowhere near double. Our biggest gain on them comes at tax time, by a considerable chunk!<br /><br />Surly I'm not the only one gonna get a bruise from this beating.

 

[ZmOz]

Re: Minimum payment to double on credit cards

I've got 5 credit cards and never once spent a cent on interest. If you don't have the money, don't spend the money...

 

[Wimperdink]

Re: Minimum payment to double on credit cards

My only debt is a house payment. Its a mercy and a blessing in my case that noone would give me a credit card when I was younger due to lack of credit. I hated it then but I'm loving it now. Still dont have a credit card and no longer want one though I now get offers in the mail every day. I often open them and read the fine print just to remind myself why I dont want one.

 

[neumanns]

Re: Minimum payment to double on credit cards

Apperantly I was wrong, I am the only one gonna feel it...Oh well, it's just a temporary bruise. Not a life threatning injury.<br /><br />Actually it's not gonna hurt to bad...More grumbling and complaining than anything. <br /><br />However I did find it quite shocking, and was surprised I was not aware of it. But I'll be willing to bet it's gonna be near fatal for some folk's.

 

[SS MAYFLOAT]

Re: Minimum payment to double on credit cards

Intrest rates that are over 20% should be illegal and looked at as loansharking.<br /><br />I got a legit check in the mail today for $5,000. It says 2 forms of ID must be shown for depositing this check. I looked on the backside and to borrow the 5 grand would cost 4245.81 just in intrest! No wonder financial institutions are the number one money makers. I think it should be illegal just for an institution to send a check without the authority of the receiptiant. What would happen if it was stolen out of my mailbox? Would I be liable? If so why should I if it is not my signature ?<br /><br />I think lenders are leaches when it comes to loan shark intrest. Doubling the minimum I see as a positive thing.

 

[Fly Rod]

Re: Minimum payment to double on credit cards

Since they are going from 2% to 4% that means your payment is double from before, which means you pay off that 2,000 balance in half the time,means less interest you pay, like putting money in the bank!!!!<br /><br />This also means that people that were behind on paying their monthly CC paying 2% will be further in debt paying 4% because now they can not pay the higher monthly balance, in turn gives them bad credit!!!

 

[heycods]

Re: Minimum payment to double on credit cards

A few years ago I was disabled ,had no income coming in ,Long term disability wouldnt kick in for 6 mos. things got in a bind, Dr. bills pilled up. I made the dumb mistake of using credit cards to pay these bills ,It wound up me owing $20000.00 on credit cards, couldnt begin to make min. payment. When I finaly got settlement from Ins. and back payment for LTD. I paid these suckers off and cut them up. Never again. I use ! card with a low intrest and pay the bill monthly. No balance for me.

 

[rolmops]

Re: Minimum payment to double on credit cards

I have about 6 credit cards,all at about 6% interest.They have yet to see one cent in interest payments because I always pay my cards off every month.It does however give me an instant $20.000 credit line in a pinch.(I hope I will never need it)

 

[KM2]

Re: Minimum payment to double on credit cards

This really is a good thing. Many people need protection from the predatory lending practices of cc companies. <br /><br />Nueman, I look at large tax refunds as a interest free loan to uncle sam. Change you tax withholdings at work and get a little more money in the paycheck. Put that towards the CC's. You can make the higher payments without changing your monthly budget plus you will pay less in interest and pay off more quickly.

 

[Kalian]

Re: Minimum payment to double on credit cards

Yep, thats good advice KM2, I did the same thing. My wife used to control the finances in my house when we first got maried. I had a feeling we were acumulating more than we could afford, but didn't think much about it. By the time I got involved we had racked up $36,000+ on over 12 credit cards. In addition to what KM2 said, I transfered as much as I could to the credit cards with the lowest rate, paid minimum on all the other cards and put all money left over towards paying off the card with the highest rate first. I also cut my insurance policies down to the bare minimum required by law, canceled cable, and cut all unnecesary spending from the household budget. And it still took forever to pay it all off. I now have one credit card that's used for gas, etc. I pay it off every month and will never again pay a single dime on interest, except for mortgages.

 

[DJ]

Re: Minimum payment to double on credit cards

I've got 5 credit cards and never once spent a cent on interest. If you don't have the money, don't spend the money...

DITTO!!!!<br /><br />You can NEVER pay off a credit card, in your lifetime, making minimum payments.<br /><br />If you can't handle them, GET RID OF THEM.<br /><br />I use them, for convenience-ONLY.

 

[rodbolt]

Re: Minimum payment to double on credit cards

thats why I carry american express, after I paid off all the stuff my Ex racked up I carry one card that is required to be paid in full at the end of the month.<br /> if the cash aint in the bank the card stays in the wallet.

 

[POINTER94]

Re: Minimum payment to double on credit cards

Nothing in the Universe is more powerful than compound interest.

 

[DJ]

Re: Minimum payment to double on credit cards

The only problem with ONE card-AMEX, is that acceptance is not as high as VISA.<br /><br />The point is to PAY IT OFF-MONTHLY.<br /><br />The credit card companies hate that, but they keep sending me new ones, in the mail.

 

[Homerr]

Re: Minimum payment to double on credit cards

I paid off all my cards and cut up all but two.<br /><br />Both of those have some kind of reward when you use them. It ain't much, but it's better than a sharp stick in the arse.<br /><br />LOL... It's a strange feeling too when it comes time to write the checks for the bills... After I paid them all off... I found a bunch of extra time and money!<br /><br />All I make now is a couple of payments. Done!<br /><br />H.

 

[snapperbait]

Re: Minimum payment to double on credit cards

SS Mayfloat wrote:<br />

I think it should be illegal just for an institution to send a check without the authority of the receiptiant. What would happen if it was stolen out of my mailbox? Would I be liable? If so why should I if it is not my signature ?<br />

Exactly!... <br />Folks... Call the issuer of the check (CC company) and tell them to STOP sending those to you for the exact reasons stated here by SS Mayfloat.. I have called my CC companies and told them to stop... I no longer get the checks in the mail..<br /><br />Everything's paid in full when the bill comes due here... Just been sitting here writing checks myself...

 

[rogerwa]

Re: Minimum payment to double on credit cards

I put all of our daily expenses on a single card and pay it at the end of the month. We rack up about $2200-$3000/mo on that card and it is a good barameter to tell how our budgeting is going for the month. I shop around for the best rewards. I used to get $45-$50 deducted from my bill on the previous reward card until they changed the program and put a cap on the 3% cash back on gas.<br /><br />The card companies will always take a good customer that pays his bill off each month because they still get the transaction fees from the purchase.<br /><br />I agree, if you don't have it, don't spend it. If you look at the opportunity cost of the finance charges (meaning I could have gone out to dinner with that finance charge or bought myself a new whatever), that should tell you something..