Change/credit cards/check yours

14 years ago

I got my monthly statement from one of my cards. Not nice and small, but bigger, and 2 pages and I only charged 2 items, and one automatic charge.

They are trying to put all the new regs, ads and everything else on the bills.

BUT, one thing is very important to those who do not pay their bill off.

Suppose a bill was approx 428.00. If you made no more charges, payed mim. amout it would take 3 years to pay this off and you would pay 544.00 in interest!!

That is scary. Like I said, please read your statements very carefully especially this month and the new rules went into effect today, but there are loopholes also.

Sort by:Oldest

Comments (12)

glenda_al
14 years ago
Mine are paid off every month!

That's the one and only card I use.
kathi_mdgd
14 years ago
Don't use any!! Hope all the stores go back to layaway plans.JMO
Kathi
Related Discussions
Maybe cut your 'credit' card interest cost by 1/3 ... or more???
Q
Comments (6)
Greg H, Your message tells me how you are managing ... debt. Wisely, yes. To your advantage, yes. It's still ... debt. D-E-B-T - a four-letter word! Cut it whatever way you like, it's still debt. Which can be become a *serious* problem when it's misused. That you are obligated to pay - even if you get a temporary lay-off, or with certain specific skills no longer in demand, a pretty well permanent one, or suffer permanent disability, or have a kid who subsequently develops a need for $50,000. worth of uninsured medical care - or even die. There's only one way you can avoid it - go bankrupt. Which steals from other folks who gave you services in good faith, from which you walked away. Some do that several times - walk away ... smiling. The message was, as I said earlier, not directed to the likes of you or people anywhere near as smart as you when it comes to managing money. Like, maybe, your friend's kid who, though s/he was in college, wasn't too smart when it came to money management. A local Canadian financial consultant complains that they don't teach much about it in school. If the corporations, including the financial ones, get their feet more heavily into the schools, there'll probably be even less. In his book, he offers advice on how to make a rate of return of 40% or better on your money - guaranteed. Proviso - you can only make that (before-tax) rate on store-issued credit cards whose balance you pay off. Maybe, had your friend's offspring not been willing to pay attention to his/her parent, as being out of the dark ages when it came to instructions as to wise ways to live, s/he'd have listened to you had you offered some advice. The reason for making the point about it actually being a debt that was being incurred when you use the card was to try to get some people who know much less than you about money management to begin to think about it somehat differently. The point of the message was to show them how they might reduce their cost somewhat if they followed a different pattern than some may have started through following the easy path of signing up for a store-issued card. I approached it with some trepidation, for I was advising ... taking out an additional card. Which could (too?) easily have a major debt run up on it, as well - leaving the holder in a deeper hole than previously. Should I become aware of that result springing from advice which I had given, it would trouble me greatly. Much more concerned than I was about complaints such as yours - which I hear about half of the time that I make this point. By the way - you didn't say that I was wrong - you just said that everybody does it, right? By the way, elsewhere in the message, when I was not dealing with the specific issue of the debt aspect of the card, I referred to them without using the quotation marks. Your country - government and people - is drowning in debt. And digging the hole deeper, daily. The "value" of your dollar is dropping - had you noticed? Good wishes to you for wise management of your money - and assets, Greg. ole joyful
...See More
Cancelling credit cards & credit score
Q
Comments (10)
Everything I've seen/heard about this is not to cancel credit cards. Cancelling them does affect your credit scores. That said, at one point I had 3 separate credit cards issued by the same bank. I use only one and pay the balance in full every month. I have received letters from the bank requesting that I either use the cards or said cards would be cancelled effective 30 days of the receipt of said letter. I didn't use them, and those accounts have been cancelled. DH hates credit cards and prefers to pay cash for purchases. I did check with the 3 credit bureaus regarding whether the cancellation by the bank for lack of use of those two cards would affect our credit scores. All three claimed that it would not, and I did manage to obtain fax confirmation of that assurance. I did pull reports at 90 days after their cancellation, and our scores hadn't changed. Unless the card company contacts you about cancelling for lack of use, I wouldn't cancel.
...See More
Call your credit card company
Q
Comments (5)
I just recently tried, I didn't make any threats. Was told no at this time but "seeing how you are a valued customer we would like to give you an increase on your credit line" The increase was not what I wanted, I use my card very little so the amount available is no biggy to me Sounds like I need to try it this way next time! Thanks for the info.
...See More
cancel your credit card before you die!
Q
Comments (8)
I'm settling my mom's estate now. Obviously, in the original post here, there should have been no charges, since the account was 0 when the woman died, but the executor DOES have the responsibility of notifying anyone who has a financial interest. And it's pretty obvious that the credit card company needs to take a serious look at their practices and make a few revisions. But debts don't die with the person. Every will I've ever read includes the statement that the executor/executrix is charged with the responsibility of paying off all debts as quickly as possible, so it's perfectly reasonable for any creditor to ask for--and expect--to be paid what they are entitled to. Maybe I'm out of step here--but I've been calling everyone I can think of to find out if my mom OWED them any money when she died, and as soon as I find an unpaid bill, they get a check immediately. It's only been about 4 months, but it looks as if I've tracked down all the bills she owes--I don't see how it could take much longer, if the executor is on the ball. And at my accountant's urging I'll be disbursing to my brother and sisters this weekend. But don't get me started on jury duty--now THAT questionaire, I filled out with her new address (XXX Cemetary). I posted about that a few weeks ago. I did get a lovely letter back from the assignment judge, though--he's someone my family has known for over 50 years, and it was nice to touch base with him, even if it was over mom's inability to report to serve.
...See More
Mystical Manns
14 years ago
Last year we closed all except one account, and it's paid in full every month. You're right, it IS scary! The business practices of some financial companies is just appalling. I miss the days of just using our local bank (we're in a big city, there's no such thing as a 'local bank' around here) and everyone inside knowing us personally. If the furnace went out ... go get a signature loan and pay it off in a year or two, no problem! No outlandish interest, either. Looking forward to small town living after I retire, and re-establishing relationships like that.
bulldinkie
14 years ago
Yes I got a discover and one month there was a charge 20.00 and anoer charge like 13.00 I wrote check out for what I owed.Next month again,Oh they called the one a wallet insurance.20 dollars????So next month there it is again.I wrote on reciept dobnt want this.Next month again,again,again so finally I wrote a letter and said this is it one more time Im done Guess what...They did it again.So bye.
But also you get a check in the mail doesnt explain 10.00 or 15.oo dont cash it.Thats what it is.
My last bill was 2,000 on discover,from Christmas......I paid it off.Ill take my business elsewhere.
joyfulguy
14 years ago
We need more financial education in our schools!

So says a local guy who wrote a book about how to find financial freedom without sacrifice ... e.g. how to make 35% on your money - guaranteed. (Pay off balance owing in full on store-issued cards, which usually charge about 28% interest ... and since most of the stuff that many of us buy isn't deductible, we must pay that bill with after-tax money, which, if we're in 20% bracket, means that we must earn $35. before-tax, pay $7. tax, and have the $28. needed to pay interest on $100. account ... considered on an annual basis). And pay full amount owing every month thereafter.

I agree.

"Credit" (really "debt") cards have something in common with a chain saw ...

... a useful tool - which must be handled with care ... and one needs to learn all of the risks involved and how to forestall them - not deal with them after the fact.

Business ... is business ... is business.

If you're going to drive a car ... you'd better learn how to do it before taking it on the road ... or it (with you at the wheel) can cause a great deal of damage.

If you don't boss your money ... it'll most likely boss you ...

... and that's true, doubled and in spades, regarding "your" card(s) ... which aren't really "yours" - the issuers retain ownership (and can rejig/repossess them at any time).

Learning how money works: an interesting hobby - that pays well!!

ole joyful
debo_2006
14 years ago
I pay mine off each month, BUT, I'm annoyed that they may begin charging an annual fee for doing that. And, I heard on the news they many institute a charge if you don't use your card enough. Another charge may come if you still want a paper statement. This is ridiculous.

This is getting as bad as all those airline charges.
sjerin
14 years ago
The banks got used to raking in obscene profits and aren't about to give that up without a fight, or rather without making up new "fees."
bulldinkie
14 years ago
I got one of those checks in the mail today 9.95
mary_c_gw
14 years ago
People should have been reading their bills from the get-go!

While I support this new credit card bill, all it does for most people is provide more information to card holders, and give them a 45 day notice if their rate will be increased. The best feature is the requirement to disclose just how long it will take to pay off a certain balance while paying just the minimum - and that is the key feature that will educate most people.

It's not like it's really changed, mind you. It was always going to take (X months to pay off X debt at X rate), while paying the minimum.

But now the financially naive have it in writing, and maybe will get a clue. I understand that some people have disasters in their lives and need their credit cards to survive the immediate incident. But most people in deep credit card debt are simply living far beyond their means, and they need a wake up call.

Yes, some cards might now charge a yearly fee, but they have to tell you well in advance. One can cancel the card.
sue_va
14 years ago
These changes have been in the news lately so they shouldn't come as a surprise.

One thing did surprise me last month though. I noticed on my Discover statement that the minimum payment had changed from $15.00 to $40.00 a month.

I pay mine off each month so it doesn't affect me. I use the card strictly for convenience so I don't have to carry cash with me.

Credit has been easy to get and folks don't read the fine print. We can blame the banks all we want to, but it is people who are running up these balances and buying more than they need or can pay for.

Stoney mentioned signature loans and that reminded me that I once bought a house with a signature loan. That was 22 years ago. Guess that wouldn't happen today.

Sue
Lindsey_CA
14 years ago
"Suppose a bill was approx 428.00. If you made no more charges, payed mim. amout it would take 3 years to pay this off and you would pay 544.00 in interest!!
That is scary. Like I said, please read your statements very carefully especially this month and the new rules went into effect today, but there are loopholes also."

This is actually BETTER THAN the way it used to be. The minimum amount due each month has INCREASED, which LOWERS the amount of time it will take to pay off the total balance; and it also LOWERS the total amount that you will have paid by the time it's totally paid off.

Another change that is an improvement is when you have balances that are subject to different finance charge rates... Here's how the old system worked --- Let's say you have a card with a $468 balance at 22% interest. The card issuer runs a promotion where you can transfer a balance from a different card, and pay only 1.99% interest on that transferred balance. So, you transfer $500 from another card. You make a payment of $125. That payment will be applied towards the $500 balance at the lower interest rate, so the bank will charge you the maximum interest on the $468, because there wasn't any payment made against it. Each month when you make your payment, the payment will be applied towards whatever remains from that transferred $500. It's only AFTER the $500 is paid off that any of your monthly payment will be applied towards that original $468. And all that time, you'll be hit with a high monthly finance charge.

Under the new system, if you have balances at different interest rates, any payment you make will be applied first towards the balance with the higher interest rate. This will ultimately save you $$$ in finance charges.

Another thing that has changed is Over Limit Fees. Used to be that if you had, say, a $10,000 credit limit and a $9,000 balance owing, you could still charge more than $1,000 and the bank would accept the transaction, and then they'd turn around and tack on a $35 (or more) fee for going over your credit limit. Now, they won't charge that fee, BUT THEY WON'T ACCEPT ANY TRANSACTION THAT WOULD PUT YOUR BALANCE OVER YOUR LIMIT -- UNLESS YOU AGREE, IN WRITING, TO ALLOW OVER LIMIT FEES FOR ACCEPTING THE ADDITIONAL TRANSACTIONS.

As Mary C said, "People should have been reading their bills from the get-go!"
eccentric
14 years ago
We have 2 credit cards (we pay a fee because we earn Aeroplan points on them - live in Canada)and pay them off monthly. We absolutely refuse to have any store credit cards, we read the fine print and know exactly what the interest rates and terms are. Credit has been too easy to get - sadly, particularly in the U.S. - in Canada it isn't as easy - but still, not great. People need to be accountable for their own actions - not just buyng constantly and then paying the minimum balance each month. Now if something like the furnace or a major appliance such as the fridge or stove needs to be replaced the use of a credit card may well be a person's only option - but that is not the same as buying 60 inch TVs and every electronic gadget known to man. We do have a credit line with a $0 balance so if necessary would use that. Personally I totally agree the tighter credit rules in the U.S. Yes, the banks will still want to earn high profits - but again, people need to be responsible as well. The housing crisis was not just the fault of the banks. People who bought 6 bedroom McMansions knowing they could afford a 1 bedroom condo did so quite willinging - I saw some of the interviews with said "victims" of banks and it was ludicrous. Of course people who were living within their means and lost their jobs - that is a totally different situation. House prices have taken a dive in Toronto - yet our taxes have increased alarmingly - based on the higher home values of previous years. And of course, settlements of union contracts by people employed by the City and Province, while people in private enterprise receive wage cuts and go without increases.

Change/credit cards/check yours

Comments (12)

glenda_al

kathi_mdgd

Related Discussions

Mystical Manns

bulldinkie

joyfulguy

debo_2006

sjerin

bulldinkie

mary_c_gw

sue_va

Lindsey_CA

eccentric

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US