Credit Card Company Raising Minimum Payments......

HI all,

As some of you may already know or already be affected by it, many credit card issuers, including Bank of America, MBNA, Citigroup, and Discover card will soon be raising their minimum monthly payments from around 2% to 4%. I wonder how many of you will be negatively affected by this change? I know that many people can barely pay their minimum payments as it is. I think that this policy will help a lot of people get out of debt by paying down their credit cards faster, but some people will not be able to keep their head above water. I would be interested to know what everbody thinks of this new policy. Thanks!

~Mary

I don't think it to be a bad decision. If people want to misuse credit, they won't bring any improvement in their file. But consider those people who are desperate to become debt free. They will take lesser time to come out of the debt cycle and ultimately it will be helpful in the long run.

Just consider, can that 2% be enough to pay off the complete debt especially when you have high interests and not to forget the late payment fees that come added with it on defaults. You are just getting farther from your principal amount by paying just the minimum percentage. The credit company definitely profits out of this propaganda but at present they are getting inclined towards the consumer interests.

I agree with you curlycarl, thanks for your opinion!

~Mary

I think, overall, it is a great thing. But alot of people who are struggling now will get hurt. I know it would have really screwed us up, if we weren't already in a consolidation program.

Hello, What consolidation company are you using?

clueless1, this is what I had to say in the other thread you created