I heard that cc companies are going to make their minimum payments 4% of the balance instead of the 2% like it has been. Is this for all future new accounts that are opened or are they gonna change the terms of this on existing accts with them too? Anybody know?
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This 4% or more will apply to all accounts - new and old -
This will force people to pay more on their balances then just a small amount each month.
A lot of people will not be able to make that payment if they owe 10-15,000 on a credit card.......
Glad I don't have to face that........mine was bad enough at the time... if they had doubled - I COULD HAVE GOT OUT THE GUN...
MinnyMinny
"It's amazing the paths that our feet sometimes follow in life".
My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different. -
Well, I think it may depend upon the company and policies..I remember that there was a few times whne my CC's would change a term(s) and so you had the option of keeping card open or close it..So they may do the same.Comment
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This is actually an OCC regulation that the cc companies are against. Remember the cc companies make more $$$ if we are in debt forever with low monthly payments. The Govt feels that too many Americans are in debt with very little savings (now look who's calling the kettle black, LOL
) so they are kind of forcing us to pay down more debt faster by doing this. I think it actually very good for new cc users such as young folks, but it will KILL existing cc debtors. Notice how they are all waiting until after the new bk law goes into affect before they all change the min payment. By December and January many people will just collapse when they open their cc bills and see the surprise that's in store. I predict that 2006 will be a year of record ch13 filings when the news hits millions of uninformed debtors
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What I find ironic is that they pass this law and the new bk law goes in effect next month. It's like they are forcing people into bk, but then making it hard for them to get it.Comment
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The law is actually a few years old, but the banks have been resisting until now. They must have it in place by the end of the year. The law does make perfect sense (for new cc users). Most Americans have such a huge debt load and little or no savings and this will force us to stay out of debt which is a good thing. Imagine if they enforced it back in January. With the laws changing in Oct there would probably be over 10 million people filing whether they want to or not. Trust me that will happen next year and the new law will force them into 13's.Comment
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When you read between the lines regarding the new OCC Min requirement and the new bk laws it will be good for us all in years to come. The next couple of years the transition will be difficult however. Most people won't be able to obtain large amts of debt and will buy more with cash, lowering the cost of goods and services. GM is already lowing the price of it's new cars. The new bk law also exempt most retirement savings
for working class and the high 4% min req. will make it difficult to borrow and get into trouble. The govt needs to help us as far as giving us all incentives to save more and spend less and this maybe a start. I will imagine that most of you won't depend on social security so we all need to save now.
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Here's a link of us mentioning the new rules. I posted this several months ago.
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This is going to be horrible
I am stressing so bad about this, I wanted to file CH 7 before 10/17 but I have a balance transfer on a credit card that could be objected so I want to ride it out a few more months by paying minimum pmts on it somehow but if they are going to raise minimum pmts to 4% there is no way I can do it, I am totally screwed.Comment
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Originally posted by okane
I feel your pain. Same thing here.
Hang in there!!
Good luck!Comment
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[QUOTE=hhou812hh]When you read between the lines regarding the new OCC Min requirement and the new bk laws it will be good for us all in years to come. The next couple of years the transition will be difficult however. Most people won't be able to obtain large amts of debt and will buy more with cash, lowering the cost of goods and services. GM is already lowing the price of it's new cars. The new bk law also exempt most retirement savings for working class and the high 4% min req. will make it difficult to borrow and get into trouble. The govt needs to help us as far as giving us all incentives to save more and spend less and this maybe a start. I will imagine that most of you won't depend on social security so we all need to save now.
That is one thing I have discussed with family members. If I had had limits of maybe $1,000-$3,000 I wouldn't have gone BK...However, I also admit it was my fault I did.
If the new rules help those who aren't careful with credit, then they'll be worth it.Comment
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I think it is a good thing they are raising minimums.
The analogy that applies here it the one about turning up the heat slowly on the frog in the kettle - he stays in and dies because he does not notice it getting hotter. If you turn it up quickly he will jump out. Not a perfect analogy, but close enough I think
In the past, I would do a cash advance and think, "$500, that's only another $10 or $15 per month". Dangerous. And I learned my lesson.Comment
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