Minimum payments going up?
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Minimum payments going up?
| Fri, 10-21-2005 - 9:38pm |
I was lurking on another board and found a couple of discussions on the minimum payment going up. According to this board and a couple of articles I found on the internet credit card companies are raising the minimum payment from 2.5 percent to 5 percent. Does anyone know if this is true? If it is I am in trouble. I have been paying the minimum on all cards but one which I have been doubling the minimum. I have never been late on any payments but if this happens my minimum payments are going to jump to over $700.00 a month.
This will be a good thing for those that can afford making a double payment but with gas and heating bills going up this is not the best time to start this for most.
Thanks

I have heard about this too, but from what I read it is only certain credit card companies that will be raising minimum payments. It may not be across the board. I'm not sure...I guess no one will be until it actually goes into effect...but I don't think this has been confirmed yet. I'm hoping it's just a scary rumor! I could be wrong though. :(
Angelpie41
I got a notice with my September MBNA bill that my minimum payments would be going up from 1% of my balance to 5%, starting with the December bill. I'm trying to put as many snowflakes to this card before the December bill arrives in late November. I think it's going to be hard on a lot of people this winter with rising credit card minimums and high heating bills. I've already told Dh that we are going to just dress extra warm and keep our thermostat waaaaay down this year. Even our dog has a nice warm sweater, so we should be ok. LOL! :-D
Pat :-D
This seems to be one of those cases where the simple answer is yes but the full answer gets a lot more complicated. The concern is that minimums are currently set so low that you can pay the minimum and not pay anything towards the actual debt. BUT-
Not all credit card companies were charging the low minimums so your individual company may or may not be changing.
Not all consumers pay the same interest rate so if you have a lower interest rate the minimum goes farther. Some of the companies are only changing for those customers with a higher rate. The problem then becomes that you probably have a higher rate because of a low credit score which may have come from the inability to pay the minimums in the past so how the heck will you be able to pay them now? But I digress....
Not all companies are changing to the same percentage...some are going to 3%, some to 4% and some to 5%
We called ours and chatted and we also think from additional research that you could close the account and then stick with the initial terms of agreement but I did see one website that didn't think that was the case....
Personally, I just keep snowflaking away with the hope/prayer that by the time changes are made I would be able to pay the minimums on both.
Taleyna