I heard this on the news this morning; but this is the only article I could find on the net. It came out 4 days ago...

Anyone else smell a rat? I just find it funny that such an event would coincide with the announcement of the change in bankrupcy laws... I find it odd that credit card companies "care" so much about consumers that they want to "help" them get out of debt sooner...

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Fellow F-150ers- and other Ford Fans, lend me your ears- I mean, eyes....

http://www.kcbd.com/Global/story.asp?S=3312003
If you haven't already cut up your credit cards, this may drive you to: Crystal Gomoke with Consumer Credit Counseling Service says, "The Office of the Comptroller of the Currency has asked credit card companies to increase the minimum monthly payment they are requiring consumers to pay from 2% of the balance each month to 4% of the balance."

Gomoke says the average consumer has $10,000 in credit card debt, which means they pay $200 minimum and, with this increase, they'll pay $400. Consumer Barbara Huffhines says, "That would be tragic, but I hate to think I'd let it get that bad. That would be real bad for someone like that." Consumers realize the change will be tough for some, but effective too. Rachel Lehman says, "Probably a good idea because it'll help people get out of debt sooner." Gomoke wants everyone to be forewarned, "Thanks to this story, you're going to know it's coming. It's not going to be a surprise, so you have time right now to make adjustments in your budget."

The reason the government has pushed for this change is simple. A quarter of all credit card holders pay only the minimum monthly payment each month. Gomoke explains, "If you pay only the minimum payment on credit cards each month, you'll be paying on them for an average of 30 years. This is trying to get it down to a point where you will pay off debt in a reasonable period of time, closer to 10 to 12 years."

In the end, if doubled credit card payments would put you over the financial edge, remember -come October- filing for bankruptcy will be a lot harder. Gomoke says, "The price to declare bankruptcy will be increasing , the paperwork will be increasing." And the difficulty of getting approved will be increasing as well.

If increased credit card payments will make you late on any other payments such as student loans or mortgage payments beware: the credit card company can raise your interest rate up to 29.99%.

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Consumer Credit Counseling Service tips to help prepare for larger minimum credit card payments:

If you got a large tax return this year, make adjustments to your W-4 so you have more disposable income.
Start tracking your expenses. Write down everything you spend money on… from your mortgage payment to a softdrink. This way you’ll know where your money is going each month and where you can make changes.
Take extra credit cards out of your wallet or purse. Carry only one card for emergencies. If you see something on sale, you’ll have to go home and get the extra card. That will give you extra time to think about the purchase and decide if it’s a “need” or a “want.”
If you’re at a point where your budget simply cannot handle an increase in credit card payments, seek professional credit counseling.
To calculate how long it will take to pay off your credit cards paying only the minimum monthly payment, (click here) for a link to bankrate.com’s calculator.

 

Eh? Am I suppose to feel something here? Am I suppose to consider this good, bad, indiferent? As far as I'm concerned, so what. The credit card companies aren't your parents. I guess I just dont understand why people spend more than they have.

 

Well put Cowboy.

 

10K in CC debt?! For the love of pete... that is just insane. If you can't pay 4% of your balance, you need help. I say raise it up! Make 'em pay!! !

 

My girlfriend worked up a bit of debt a couple years ago. She was living outside her means and was afraid to tell me. Once I found out, we got things under control. For one thing, most her debt was on the credit card with the higher rate. First thing we did was transfer the debt to the other. Then she started paying off from there and being more careful. She still likes to spend but hopefully she doesnt end up there again.

 

I have a plan.
I buy lottery tickets with the credit card so when I hit it big I can pay it off in full.

 

Just wanted you to be prepared...

I didn't know you guys were all millionaires, carried zero to no debt, or that this news would not effect you at all.

Happy days to you all...

 

Well, I've got a pretty good debt going, but it's all now on one card at 4% interest, and how does it get that way? Well, I wanted an education, and being a white male with good, but not excellent grades I did not qualify for more than $400 worth of scholarships, and my parents could not afford to pay for it. So, I got student loans for tuition and part of books, my job just barely paid for my rent & utilities, and yet I still had to come up with money to buy food, clothes, school supplies, the rest of my books, and all the other little things that come up while your in school...

So, I say BS there's no need to raise the minimum payment... at least until I get this **** paid off. BTW, I've only used my CC once or twice since I graduated (3 years ago), and I was sure to pay that part off at the next payment. I pay more than minimum usually, but no a whole lot. Hope to have this crap gone before too long... but still have the student loan to pay off...

 

I use my Visa to pay my Mastercard balance.

 

I dont' have any CC debt, but I can see how people can get into it, think about it, most of us are in debt, car/ truck payments, mortgages, student loans... Some people just have expenses that they can't get a bank to finance, no home equity, no stafford loans, no Ford Credit... You have to be careful with the cards but I'm not going to throw stones are someone elses debt, I've got enough of mine too, it's just in the form of mortgage, truck payment, and student loans. I think the point that agent was making is that this is going to hurt a lot of people big time. I can't imagine if the mortgage, truck or student loan payment doubled all of a sudden. I can see how it could be looked at as a way to discourage massive CC debt but it's also going to screw a lot of people who are trying to claw their way out of CC debt.

 

Exactly...

You took the words right out of my fingers....

 

I agree...Ive had my CC(s) for over a year now and I've been able to pay the bills off every month.

 

I have been using Raoul’s checks to pay off my credit card bills and they just keep climbing. I don’t know what the hell is going on…

 

I agree CC debt is a huge problem for some people. Me, I hate having the damn things but they do come in handy so we keep a few around. I've been very careful about paying the entire balance when the bill comes in because I just can't see giving the bank all that money in interest and finance charges when I could be using it for something much more fun. We have had CC's for 20 years and never carried a balance, it can be done.

 

The Mrs. and I got in to trouble when we first got married and wound up with a mountianes CC debts. Took us 4 or 5 years @ paying 4-5 X's the minimum payments and paying any extra $$ that came in too, in order to get it under control. Credit cards are not bad... The way people use them is bad. We still use them.. Especially when traveling. Safer than cash and the debit cards do not always work every where. But we pay the CC bill in full as soon as we get the first bill, before any intrest is accued (sp?).

Edited to add:
I like the minimum being raised myself.. People get into trouble because... It is to easy to put a $2000.00 item on it and only pay $20 a month "or what ever". Often the intrest is higher than the minimum payment so they actually go further in debt each month. I think they should have a time limit and be more like a loan. Say maybe 5 years from the date of purchase, and payments are calculated on that.

Edited again to add
Or the payment could be calculated at the montly intrest incured + 4% of the princiable balance.