Yet Another Casualty of Credit Card Payment Hikes

PRWeb ^ | 2/28/2006 | Unknown

[sedonaApps]

With just over $80,000 in credit card debt, Perfect Credit Club founder, Brandi Young may be forced to give up the membership to her own club due a new federal rule that is requiring credit card companies to increase the minimum monthly payments they collect from cardholders.

[sedonaApps]

And I thought I had it bad when I was 20k in debt. Goes to show there is always someone worse of than you. My thought is - if you owe 80 g's to credit card companies, you had problems long before the government stepped in.

[Attention Surplus Disorder]

$80K CC debt = MORON

[BW2221]

One of my gripes is unwanted credit card solicitation. My son, who is a 20 year-old college student, receives at least six unsolicited direct mail credit card mailings monthly.

I forget the exact number, but I believe the credit card industry sent something like 5 billion credit card solicitations in the U.S. last year.

[pierrem15]

Got $20 from my bank's ATM machine tonight and I got a screen offering me a 'pre-approved' VISA card before printing the receipt.

It's nuts.

[sedonaApps]

I get a lot of them too. It may seem childish, but I take the application, rip it up and put it in the postage paid envelope and send it back. Occasionally I will stick a few paper clips in as well - but only when I am having a really bad day.

[Wolfhound777]

Exactly. Who in their right mind would want financial advice from someone that ran up $80,000 in credit card bills and now can't pay them off?

“Never before have people with excellent credit been courted so openly”, says Brandi “but I truly feel that a community of financially responsible people can have a positive influence on the way credit and other financial issues are viewed. There is a certain level of respect given to people that make good financial choices. The Perfect Credit Club just takes that respect to a whole new level. Rather than asking Uncle Bob for his financial advice, you will be able to ask not only Uncle Bob but a million of his like-minded friends as well.”

[sedonaApps]

I didn't notice the financial advice part Wolfhound... but I wouldn't mind gettin' a few spifs just for having good credit. I just hope it's not like those pass books they sell at my credit union where you pay $50 for a book of coupons that you only end up using $20 dollars worth.

[Wolfhound777]

Yeah, I don't know what it will be like. I do know that Brandi had better hope the website is successful so she can pay that $80,000 in credit card debt off :-)

[fizziwig]

“Never before have people with excellent credit been courted so openly”
____________________________

Payment history is only on part of a credit rating, there are several other factors that matter such as debt load, type of debt, income, etc. Unsecured debt such as credit cards is the worst type and too much of it will bring your credit rating down, even if you have a perfect payment record.

80k in debt means that, at the current minimum payment calculation, she is paying at least 1600 per month, nearly all of which is likely interest....and not deductible either. I doubt if she has anything to show for that debt either.

[Energy Alley]

Six, between my two college aged children they must get THIRTY!

Way back when I was doing my masters, I had to travel alot and while all my expenses were covered for project related travel, I had to pay out of pocket and the cooridnator would square up with us every month.

I would have killed for a credit card, but there wasn't a bank that would give me one. Now they are so easy to get that its just a joke.

The punchline being, banks knowingly issue credit to the 100% unworthy, and then go crying in Washington when they default. They have forgotten about credit as a speculative investment.

[Attention Surplus Disorder]

Let me be clear: There's nothing wrong with going into debt for a valid reason. However, there's no more abusive or onerous debt than credit card debt, and I include Guido & Vinnie. Most credit cards nowadays immediately snap to 24.87% and sometimes 29% interest on any balance (PLUS, of course, the late fees) if you miss or are late on a payment. OR IF you are late on some other credit instrument and they hear about it....have you actually read your credit card "terms and conditions" recently? Seriously, it should scare you. Essentially....they can change ANY term and ANY condition ANY time they want...without notice...because the next bill showing your rate has just tripled DOES constitute proper notice. Also, a great many smaller CC cos have been bought by MBNA and are now adminstered/collected under these types of very onerous terms.

I've sometimes carried large CC debt on my business line. Fortunately, the receiving bank is nearby me, in the same state. I always send in the payment far enough in advance so that I can 1: check w/my (checking) bank to see if the ck has cleared 2: with enough leadtime so that if I find no demand on my ckg acct within a few days after mailing, I'll have time to send another check. MOST often, the CC company does NOT have a street address, so you can't send them pmt via Fed Ex in a hurry in case of a snafu.

Now...having read these discussions before on FR, I know there's quite a few folks who immediately pay off their CC charges (which they seldom use) and there can be no criticism of that. But, many less established entrepreneurs use CCs for business expenses; or a homeowner might need an unforeseen roof replacement and might have to go this route. Yes, there are smarter ways. I just want to point out that you can seriously hurt yourself should you forget the payment envelope on the dash of your car for a few days....or if the CC company somehow "doesn't get" your pmt (Advanta is FAMOUS for "not getting" timely pmts)...or...if you're a deadbeat.

[Hidden Imam]

Thanks be to the Republican Congress for having had the wit and wisdom to pass the Banker's Protection Act of 2005 (or however they camouflaged it), which with little notice doubled monthly payments for working people and also made it virtually impossible for those blessed to be in the upper 50% income (which largely includes their chief voting base) to file for any form of reasonable bankruptcy relief if they suffer misfortune.

Having returned us to indentured servitude to the fine folks owning DiscoverCard, Visa, etc., I expect future Republican Congresses to bring back debtors prisons to enforce their righteous judgments.

Nevertheless, it is somehow comforting to see that the Republican leadership bends over for special interests other than the RIAA and the needy oil oligopolies. In Denny Hastert's America, even small family operated firms like Chase Manhattan, Citi, MNBA, etc., are given a sympathetic hearing and their legal needs are met. If Orin Hatch and Jack Valente had the only hot relationship going, well, that would be troubling wouldn't it?

[capt. norm]

someone that ran up $80,000 in credit card bills and now can't pay them off?

People worry more about the amount on the cash register when they're checking out at a grocery store than they do their credit card balances.

I guess it's "out of sight. Out of mind".

I have finally reached a major lifetime goal. Took me a while to get there but now, at age 64, everything I have is paid off. The only bills I get in the mail are for utilities, cable + internet (same vendor), and TiVo (which I can no longer live without).

It shouldn't have taken this long, but raising a family introduces a huge set of variables.

[angelanddevil2]

When I bought my house 18 months ago, I applied for a mortgage for 100% of the value. But I still needed some more money for the remodeling (to actually make the house liveable). I was going to take it out of the credit card, but then someone told me I could ask for a loan against my 401k. I did it. Not only the interest is very low (4.5%) but also, all the interests go back to your 401K account. The only cost is $50 in the beginning. I am in no hurry at all to pay for it. The only dissadvantage is that if you leave the company (or are laid off) you have to pay the loan in 3 months. Now I have the house, it's kind of nice, I'm contributing extra to my 401K and I pay my CC every month. I'm so glad I don't have 10K debt in the CC!. I would have regretted it for years.

[maxter]

Congratulations! That is a big deal. I have no credit card debt, however, have a mortgage and car payment.

[ccmay]

made it virtually impossible for those blessed to be in the upper 50% income (which largely includes their chief voting base) to file for any form of reasonable bankruptcy relief if they suffer misfortune.

Oh come on. There is still Chapter 13, under which you make payments in proportion to your ability to pay. It just got rid of Chapter 7, which was becoming a refuge of scoundrels and deadbeats.

If you have a good income you ought to be able to make payments on money you owe. If you can afford to pay back your debts, but don't, you are a contemptible thief.

The only people who suffer under this law are thieves and lawyers, so who cares?

-ccm

[sedonaApps]

But where does one go to find out who the good guys are? What CC companies are NOT bending over their customers these days?

Too hard to sort through all the ads on the net... Everyone's an affiliate these days.

[Tunehead54]

Don't send them their app - it IDs you and paperclips are useful. Just send them 20 or thirty pennies from your change tray. It'll cost them more than it costs you. Tape it up real well. NOW and PETA regularly get my donations. ;-)

[tiki]

I hate those checks they send. What if someone else gets my mail? Oh, and when they send those $5000.00 prewritten checks and all you have to do is sign them and cash them! Do people really do that!

[CheyennePress]

Online payments are the way to go. I pay off my credit card balance once a week. No stamps. I always meet my minumum payment, so even if I do slip up, I've at least 1) paid off the minimum and 2) kept the balance low on the card throughout the month so there's less interest.