Minimum payment on credit cards is being raised! It is raising from the existing 2% of the outstanding balance to 4%. For those of you who can handle it, wonderful, for those who can't you're further screwed. Now I know we all mean to pay off our credit cards, but face it, stuff happens. Well you better make doubly sure that stuff doesn't happen. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which became effective October 17, 2005, made it more difficult to erase debts by filing for bankruptcy. Coincidence that this happened prior to the doubling of minimum credit card balances? I think not
Complaints by banks and other financial services companies who believe that the banktuptcy laws have been abused by gamblers, compulsive shoppers, and others, have finally been heard
So before you take that plastic out for the holiday season, think about it, is free shipping and handling worth it in the long run?
1 comment:
That's why I only have one credit card with a very low limit. And if I can't pay the bill in full, I always pay more than the minimum payment so I'm chipping away at the principle and not just paying interest.
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