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- Go to YOUR MINIMUM CREDIT CARD PAYMENT IS ABOUT TO DOUBLE
Yikes! The Writer, Damon and FW Mystic are in agreement!
Even wierder, Corbin and I are at odds, to a point. Yes, raising minimums is good in the long run, but it causes enormous problems for those of us with limited cash flow to make them.
FW, that is the logic, but there was no legislation as such, jsut another of those bureaucratic fiats handed down from on high. Consumer advocates are up in arms for the same reasons I am.
Justsuono, thanks for commenting. I miss having your insights!
posted by
WriterofLight
on December 30, 2005 at 6:14 PM
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Welcome, Wislon!
Good, if painful, insight!
posted by
WriterofLight
on December 30, 2005 at 6:06 PM
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WOL excellent post, very informative everybody should read it.
It is not difficult to understand why this topic has not become headline news. There are to many people who live for the newest daily Bush/Christian bashing. You can come pick up grandma take her out to be euthanized, sell his wife to a Middle Eastern sex mill, (located elsewhere), and adopt his children out and most will sit still glued to CNN to see if there is any new negative news about Bush or squashing some Christian activity.
It behooves us to read blogs like yours and a growing number who are putting in information worthy of reading! There are no ratings in this on the TV.
posted by
Justi
on December 30, 2005 at 5:15 AM
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I Don't Think...
...we've ever agreed before - but we do here!
However, I'm not surprised - only wary now that similar legislation is heading out=r way in the next year or so.
The truth is, banks and credit card companies only make money when you and I are in debt. Indeed, that debt is not lent to you from existing balances - it is conjoured out of thin air (or rather from the digital ether!) If you keep slaving away to pay them, their happy. If you go bad on them, they have to repo your car or house, et voila! The debt they conjoured from nothing suddently becomes a solid asset, now owned by them, that they can liquidate for real cash.
Heads they win. Tails they win. And in both cases, we lose.
Don't get me started.
D
posted by
DamonLeigh
on December 30, 2005 at 1:28 AM
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Excellent post and information......
When Credit cards first started......Like Mastercard and Bankamericard......you have relatively low limits and your minimum payment was 10% or more.
I can't remember his name...but there is a man credited with pointing out to the banks how they could make so much more money on interest, late fees, and over-limit charges if the lowered the minimum payment and raised credit limits...enough in fact to cover losses from bad accounts....something banks used to fear much more than they do today.
It's a good thing to raise the minimums back up........for the consumer.
posted by
Corbin_Dallas
on December 29, 2005 at 4:33 PM
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Excellent post!
I must admit, however, that I can see the logic of the new legislation. My guess is that consumer advocates wanted each payment to draw down the principal, even if it is ever so slightly. What the credit card companies wanted was a situation where you could make the minimum payment for decades and pay off only the interest, not the principal.
posted by
fwmystic
on December 29, 2005 at 12:05 AM
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Ouch!
I had no knowledge of that. I pay about 3-4 times the minimum on mine every month, so it won't be painful, but for many millions of others it will be a painful kick in the rear. And yes, good question as to why the news did not come out until after everyone had spent an arm and a leg on gifts.
Like the good doctor who commented below, I too am using only my debit card and trying my level best to leave the credit card in my purse.
Hang in there, writer of light . . . .
posted by
JanesOpinion
on December 28, 2005 at 7:37 PM
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Decision
This will force many to change to debit cards/cash! I have already changed my habits for I do not like donating money to causes that are not beneficial!
posted by
Dr_JPT
on December 28, 2005 at 6:31 PM
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I'm sure that in the past there was a system
by which you signed years of your life away in virtual slavery - indentured servant or something like that. Same thing with credit cards - most people are facing years, if not a lifetime of working just to service the debt. We aren't clients - we're a harvest.
posted by
wislon
on December 28, 2005 at 5:41 PM
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