I just wanted to throw a quick question out there. Have the new credit card regulations requiring a larger minimum payment of 2% of the principle ballance affected anyones monthly bills to an extreeme? I have encountered a few people who are literally on the edge and the new payments are stretching them to there limits.

 

If I can't pay off more than two-thirds of the thing I'm buying in one billing cycle, I figure I shouldn't be putting it on my card. It hasn't hurt me.

 

We treat our credit cards like cash. We only buy stuff we have the money for, pay them off every month and use the card for convenience and for the bonus points. Folks need to live within their means and not be buying $30,000 cars and $250,000 houses with a $30,000/year job.

 

Run away......
Now for my off the wall psycho babble.......
Those things are the work of the man. He suckers you in. You spend a little, he thanks you. Then he gets you comfortable. Then he feeds you the fat of the land. Life sure is grand.
Then he sends you the enlarged version of the fine print.

It'll take you years to sleep thru the night like you did when the fat of the land was yours.
Okay... so anyway... be damn careful not to sink over your head... drowning in debt sucks.
Yea yea........ "Not me man, I got my act together." I've heard that one.

 

I've had credit since I was 17. Four years later and my credit is about as good as it can be for someone my age. I have a fair amount of plastic lining my wallet, too. The only thing I carry a balance on is my Best Buy card because that is no interest financing for however many months and I pay it off way before then.

 

i dont nessesarilly have the cash to cover what I spend on the card (if for whatever reason im not saving up for a big purchase) But I usually estimate that I'll be able to pay it off withen the month.

The only two times that didnt happen, was the engagement ring, and the card we used for misc. wedding expenses, but a couple more months and we'll be in the clear on that

if people can't cover 2% then I'm willing to bet another 2% that the credit card aint thier only problem in life

 

Dudes and dudettes... I thrive on credit cards. I charge *everything* on plastic, even if it's buying a $0.99 Jumbo Jack. I don't have to mess with a wad of billz or a bunch of coins that I'd end up losing, and there's only one payment per month to remember.

The card I use from First USA (I think it's Chase these days) gives straight 1-2% cashback and has no annual fee. That's a built-in discount on everything I buy including gas for da truck, and that adds up quickly. When I bought the truck, I asked the dealer to charge the maximum allowed for downpayment on my card which was $3K. That was an instant $30 straight back into my pocket. If they allowed more and assuming my credit limit was that high, I would have put the whole truck on the card ;-)

Of course, I pay off every cent every month, so I don't care what the minimum payment or interest rate is. I think my interest is up in the mid-20%'s. Cool... As such, I rarely carry enough cash in my wallet for a quick lunch and end up bumming a few bux off my friends every time we go out for lunch on impulse. Bad!

Like mikemic sez, if you can't afford it, you shouldn't be buying it. If an increased 1% monthly payment is causing financial stress, you've got bigger problems! It's financial suicide carrying a balance month-to-month. That's why banks love those who do.

Not to change the topic, but debt cards are a big bluff--The banks benefit at your expense. Interestingly enough, these are hugely popular. I don't understand the psychology behind it, but folks feel more comfortable using these over credit cards.

 

Doesn't It Seem Strange That The Bankruptcy Laws Were Just Changed This Past Summer And Now The Minimum Payment On Credit Cards Were Raised This Month. Now They Got You They're Going To Reel You In. Some Folks Are Going To Be Hurting.

 

please explain, as I use that instead of writing a check

 

I have not seen an increase in payments. Most card companies where already above the 2% requirement.

 

whoops, typo-- that's 'debit cards'

Debit cards funds are withdrawn immediately on the spot just like cash. As soon as the transaction goes through, it's spent, it's gone...there's no float. Yeah, it's almost like writing a check, but the funds go quicker and instantaneously. With credit cards, what I spent stays in my bank earning interest (which isn't much these days) until I pay the bill up to a month later, and I get a "discount" as cashback on top of it...

 

Doesn't anyone use plain old fashioned cash anymore? After twenty years of using plastic, we were forced to use cash for a brief while (long story- ID theft). It was so...comfortable, we didn't go back.
1. No bank fees. Interest bearing checking account, write seven (count 'em- seven) checks a month. Balancing the account's a snap.
2. No ATM fees
3. Hardly any quality time spent at the bank.
4. No surprise bills.

My goal in the last few years has been to simplify my life. This was one of the key changes we made.

 

American credit card debt is at an all time high.
CHarge offs and bad debt everywhere.
Bankruptcy at an all time high.


And every single one of us at FTE pays the FULL balance every MONTH

 

Just keep in mind, that a missed payment to someone else entirely different can result in a higher % on your credit card. I dorked it out the other night and watched Frontline at 11pm (I'm 25) and it was about credit cards...how they started, why, benefits, drawbacks...and they have access to all of your information through your credit history, and can jack your rates up on a whim.

I've had to make big purchases before where I got the card, made the purchase and then cut it up. I still have a debit card for emergencies, and these days it's so easy to transfer from savings to checking that I really don't worry too much. I like not having the credit card bills.

 

Here is my opinion. Take those plastic bad boys out back and shoot them in the head ASAP. Definately a wolf in sheeps clothing. Interest rate will jump to 19+% if your payment is late. Not sent late but entered by the company's employees late. Those card companies are vultures preying upon the poor.