Well isn’t this bloody great. Who do I have to thank for this brilliant move? Oh, it’s the government.
Within the next month, Bank of America, MBNA and Citigroup will raise minimum monthly payments on their cards from 2 percent of the balance to up to 4 percent, not including interest. Other card issuers are expected to make similar changes by the end of the year.
The good news is that the time it takes to pay off a balance will take much less time — if you have the money to make the minimum payments.
“On the good side of that, they will get out of debt faster, but on the down side, it’s gonna be a squeeze,” Greg Burgess, of Compass of Carolina, told WYFF News 4’s Tim Waller.
Credit card companies are under mounting pressure by the government to raise the minimum monthly payments to help Americans get out of debt more quickly. If you can’t afford the increase, experts recommend that you contact your credit card company and try to negotiate a lower interest rate, which could offer some relief.
You know, this comes at a time where I was just starting to get a good grip on my finances and pay all this crap down. Figures. I hope this fails miserably and it never comes to pass. Then again, the way things are going it will be lauded as the greatest thing ever. Right now I’m trying to find more information about this story to see if my future will be more screwed up than it already is.
This is what I’ve found so far:
Minimum payments on credit cards about to double
The new credit card squeeze
By the way, I think that this could ultimately lead to the United States becoming a land of better spenders in the long run but in the short run it will have devastating effects.
New Credit Card Payment Requirements Bring Good, Bad News
news, credit, dumb, hamfisted, money
