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.

[BJClinton]

and then go crying in Washington when they default.

It's actually the deadbeats that go crying to bankruptcy court to avoid paying what they owe. Washington took a step to fix that.

[dfwgator]

You have to be nuts not to pay online, and that goes double if you put your payments in the mailbox instead of going to the post office. There have been so many cases of mail getting stolen from mailboxes, and CC payments are the big prize since it usually includes the CC numbers on them.

[CT-Freeper]

The Qatar flag on the profile is a nice touch, though.

[BlueMondaySkipper]

Boy, for a noob you're a veritable fountain of distorted information.

The "doubling" of minimum payments is a GOOD thing because over the long term it will vastly lower the amount you pay in interest.

As far as making it harder to declare bankruptcy, that too is a good thing. Why should the lender (and all of it customers via higher rates) be left holding the bag on bad debt?

[ravinson]

Perfect Credit Club founder

More like "Perfect Credit Card Sucker Club".

[sedonaApps]

Yep, that info is false. My payments didn't double. The notice I got just said the new payments would be:

1% of balance
plus new interest owed
plus any late charges or fees

Pretty cool actually. For those that only pay the minimums, their balance will actually decrease. Though paying just the minimum is begging for trouble.

I can see how this would hurt people with high rates, but for low rate cards I haven't noticed a difference worth mentioning.

[Old Professer]

K-Mart bought Sears.

[Octar]

Yes, Sears bought out K-Mart. And there is always someone to fill out those credit card applications. It's the American way.

I seem to remember reading that K_Mart bought Sears. Either way they're probably sunk. Who wants to buy Craftsman tools at K-Mart? I fully expect the Craftsman label to be slapped on the crappy Chinese junk K-Mart is known for. Too bad.

[Energy Alley]

deadbeat or not, credit is a highly speculative investment no more deserving of protection than any other speculative investment.