Credit card payments to double

  1. Do a google search, it's true. Banks will soon (within a year, I read in several places) be increasing the minimum payments from 2% to 4%, effectively doubling what one currently pays, if one pays only the minimum payment on a balance.

    Just a word to the wise.
  2. 6 Comments

  3. by   ZASHAGALKA
    Sounds like a good thing to me. Tons of available money w/ almost no repayment is a recipe for gathering debts that take decades to pay off.

    As someone that had problems w/ credit cards for years, I always pay at least 10% of the balances each month. If I can't afford to pay that much, well, I don't spend that much. . . (although I've found that since I learned to only keep 2 cards and keep them well below their limits, that my credit score and hence offers for new cards, keeps going up and up.)

    I think that number should be more like 5-10%. If people weren't so conditioned that credit card debt was 'easy' to maintain, they wouldn't be so indebted.

    It isn't the 1000 dollars you borrowed on that 1000 dollar limit that the companies care about: it's the interest you pay month to month that is their bread and butter. That's why they don't much care if 10% of the debtors default - the other 90% are handing over loan shark interest every month.

  4. by   caroladybelle
    And the problem with responsible debters paying off the balances in a more timely manner is?????????????

    I think that it is a great idea, but then I always pay more than the minimum anyway.
  5. by   pickledpepperRN
    Most of my life I had no credit card. Sears would have given me one IF I bought a new appliance but I always bought used at thrift stores or garage sales.

    Since having two cards for a couple decades i have never carried a balance for more than a couple months.
    They keep raising the limit and it's good to know it is there just in case.
  6. by   dianah
    My point in posting wasn't to offer an opinion (although I do agree w/paying more to pay off balance = makes basic financial sense), just to alert anyone who wasn't aware that this was coming to pass. Just to be prepared.
  7. by   jnette
    Yes.. heard this on the news several weeks ago and again numerous times since.

    Will make it hard on some folks, I'm sure. Especially those who have numerous credit cards.

    But I agree that it is wise to get these things paid off... and the sooner the better.
  8. by   SharonH, RN
    Thanks for the heads up. I never carry a balance and this is a good reminder to stick to that philosophy.