27 October 2005
Note to 42 people over the limit
Just a reminder: most of the banks who issued you those cards are getting ready to increase your monthly minimum payments substantially.
Posted at 2:42 PM to Wastes of Oxygen
I found out about this new law back in August I think. At the time we were carrying a load on Visa that not only was going to be affected by a hefty boot from 1.99% APR to 9.99 on December 23, but also by the hike in the government's new regulation that miniumum payments be raised by January 1.
Upon calculating what the new minimum payment change would be from December's bill to January's bill, I nearly passed out -- it would go from $149 to $1100. At least we knew of the increase months before and we are able to take our debt and actually take out a second mortgage through the credit union of which I am a member for 5.25%. Not only will it be tax deductible but also the payments will reduce once again.
I realize this governmental move is in the best interest of the consumer but I fear disastrous consequences for most credit card companies.
Aw, they'll get over it. Banks have been granted Artificial Resilience to help them survive crises of this sort.
Besides, much of this was made necessary by their avaricious embrace of fees, more fees, higher fees, and still more fees; inevitably, we're now seeing cards without them (cf. Citibank's "Simplicity").