Even in the best of times, carrying a balance on your credit card is a risky — and costly — proposition. These days, it can be downright foolish, at least if there’s a chance you might miss a payment or two.
Millions of cardholders have recently received letters from the likes of Citibank, Bank of America Corp., Wells Fargo & Co. and American Express Co. notifying them that their interest rates are going up, in some cases to 30% if a single payment is missed.
JPMorgan Chase & Co., the nation’s largest issuer of plastic, has begun charging hundreds of thousands of cardholders a $10 monthly fee for having carried large balances for more than a couple years.
Why? In part it’s because default rates are rising and banks are dealing with additional risk. But lawmakers and consumer advocates say the higher rates also reflect banks’ massive losses from betting wrong on the housing boom, and they’re basically sticking credit card customers with the tab.
At a Senate Banking Committee hearing last week, Sen. Christopher J. Dodd (D-Conn.), the committee chairman, said lenders are “gouging” customers to boost their bottom lines.
Here’s more information on recent government action on credit cards. Plus, compare cards and offers from everywhere.
Just stop paying them if they raise the percentage. Pay your other bills on time and have Equifax or whoever to enter a comment on your credit record (as allowed by law) that, because of the huge increase in interest you refuse to pay. When they call, keep them on the phone for as long as you possibly can so they won’t be hassling other people. Ask them if they will accept a check by phone, if they answer yes tell them you will be right back and go walk the dog or wash the car. If push comes to shove, tell the person on the phone to stop by – you have a leather check wrapped around your fist. Tell them to drop the rate and you will continue making payments. If you can play the race card, that would be an added bonus.
I think with this stimulus the federal deficit is likely to go even higher. I saw an interesting article, I think, on
http://recessioninfocenter.com
#19 Believe it or not, if you pay off your credit card in full every month your credit score goes to hell, because they don’t want you to pay in full every month.
I don’t believe it. I have only failed to pay off my credit card bill every month a handful of times in my life and I have excellent credit. The only debt I have is a buttload of student loans. Maybe that makes your credit good but I doubt it.
16,
iV CHASTISED MY cc COMPANY..
Iv told them to make it Easy to Make a payment..
I shouldnt need 3 passwords and my ONLY child in subservience..to MAKE a payment.
I would think they would WANT to take your money, and the easier it is to GIVE it BACK to them with PROFIT.
Also,
this is one of the ONLY groups that can CHANGE policies on YOU, with out a written consent.
Do people not read the application forms any more?
In pretty much ALL of them its clearly stated that the lending institution can “change the terms and conditions without notification”.
Seriously, if you sign your name to anything that has that as a clause you deserve to be ass raped by the lender with extra sand in the lubricant!
The ONLY thing I’ve ever gotten into debt for was the purchase of my home (no other options really).
I only use a visa debit card so although I can’t spend more money than I have like a regular CC, I also CANNOT get into any sort of debt, and if I want something I will save for it.
Why the hell can’t people see that as soon as you buy ANYTHING on credit you are the lenders’ slave.
Just be thankful that they aren’t doing what the UK’s Barclays Bank proposed a couple of years ago. They though it might be a good idea to decrease the payment period by 3 days every time you paid off your credit card debt on time. That 28 days you normally get to pay the debt could be reduced to only 10 days in as little as 6 months unless you made sure you got charged interest.
I haven’t carried a credit card debt for over 20 years and can’t imagine the pain 30% will cause, but if the banks have made credit cards predatory we have let them. If a $10 charge or 30% is the difference that keeps banks afloat, think of the consequences otherwise. Like it or not our credit habits have caused this mess, now it’s time to pay the piper.
Here’s an idea…stop borrowing to live. I haven’t had a credit card or bought anything on credit in more than ten years. I don’t owe anyone anything, and never intend to. I have more disposable income each month than anyone I work with, and a nice tidy savings account too. Imagine that! All because I’m not paying anyone for the privilege of handling my money.
I was one of the suckers that got reeled in when I was a kid. I’ve seen 27% interest as a standard. And that is with proper payments
No more. Bankers burning in hell would warm the the cockles of my heart. Or just burning in any furnace. Hand me the coal shovel, and stand back.