abercius24 Posted October 4, 2008 Share Posted October 4, 2008 Yep, that's right. Many credit card companies are hiking up their interest rates by 10%-25%. And because the consumer contract that you and I APPARENTLY agree to when we accept a credit card, they can increase the rate at will. And in fact they are doing this en masse to the consumer market. This is the way they intend to respond to the current economic crisis. I first found out when the owner of a nearby liquor store started telling me how his business is folding. Apparently 95% of his customers use credit cards to purchase his merchandise, but business has dwindled substantially. His customers have been telling him horror stories about their credit card rates lately and how they're saving money to pay them off. So I went home to look at my statement, and low and behold, I'd been hiked! (Pray for this business owner, by the way. Nice man with a nice family, but his business is falling apart.) So if you have a balance on a credit card somewhere, check the rate on your most recent statement. I for one have 2 that were bumped up 15% and 20% each, which I'm now temporarily working a 2nd job to payoff. Ain't no way I'm paying 32% on a credit card balance! That's criminal man! Link to comment Share on other sites More sharing options...
jckinsman Posted October 4, 2008 Share Posted October 4, 2008 [quote name='abercius24' post='1670064' date='Oct 4 2008, 01:48 AM']Yep, that's right. Many credit card companies are hiking up their interest rates by 10%-25%. And because the consumer contract that you and I APPARENTLY agree to when we accept a credit card, they can increase the rate at will. And in fact they are doing this en masse to the consumer market. This is the way they intend to respond to the current economic crisis. I first found out when the owner of a nearby liquor store started telling me how his business is folding. Apparently 95% of his customers use credit cards to purchase his merchandise, but business has dwindled substantially. His customers have been telling him horror stories about their credit card rates lately and how they're saving money to pay them off. So I went home to look at my statement, and low and behold, I'd been hiked! (Pray for this business owner, by the way. Nice man with a nice family, but his business is falling apart.) So if you have a balance on a credit card somewhere, check the rate on your most recent statement. I for one have 2 that were bumped up 15% and 20% each, which I'm now temporarily working a 2nd job to payoff. Ain't no way I'm paying 32% on a credit card balance! That's criminal man! [/quote] Yikes,get rid of your balances the best you can! scary! Link to comment Share on other sites More sharing options...
CatherineM Posted October 4, 2008 Share Posted October 4, 2008 They are not only doing that, they are also reducing people's credit limits. So check your credit limit. If it used to be $5000, and is now $3000, and you go over that without realizing it, you get to pay those nasty over limit fees. I wouldn't be a bit surprised if they forget to tell you in a timely manner so that you go over accidentally. We often have travel expenses that take a month to get reimbursed, and they don't reimburse you for the interest you have to pay waiting for their check. I just paid $44 for a $1000 plane ticket that wasn't reimbursed until about a week after the closing. I don't know what the interest rate would have to be on $1000 for it to be $44 dollars for a week, but I was pretty mad. Link to comment Share on other sites More sharing options...
Archaeology cat Posted October 4, 2008 Share Posted October 4, 2008 Mine just added a monthly service charge. Perhaps it was technically for another reason, though I don't know what it would be, since I've never gone over on that one, or anything like that. Link to comment Share on other sites More sharing options...
Groo the Wanderer Posted October 4, 2008 Share Posted October 4, 2008 Saw it coming and gave myself a plastictomy years ago.... Link to comment Share on other sites More sharing options...
abercius24 Posted October 4, 2008 Author Share Posted October 4, 2008 [quote name='Groo the Wanderer' post='1670110' date='Oct 4 2008, 07:20 AM']Saw it coming and gave myself a plastictomy years ago....[/quote] Link to comment Share on other sites More sharing options...
Archaeology cat Posted October 4, 2008 Share Posted October 4, 2008 [quote name='Groo the Wanderer' post='1670110' date='Oct 4 2008, 12:20 PM']Saw it coming and gave myself a plastictomy years ago....[/quote] I'm paying mine off as quickly as I can, and then canceling them. I've just been trying to steadily pay on them, and I don't use them for anything. Link to comment Share on other sites More sharing options...
homeschoolmom Posted October 4, 2008 Share Posted October 4, 2008 We are on a pretty strict cash-only budget. We have a credit card, but we don't carry a balance. Link to comment Share on other sites More sharing options...
Archaeology cat Posted October 4, 2008 Share Posted October 4, 2008 [quote name='homeschoolmom' post='1670127' date='Oct 4 2008, 01:42 PM']We are on a pretty strict cash-only budget. We have a credit card, but we don't carry a balance.[/quote] That's our plan. We only do cash now, and once we pay off the credit cards, we'll keep one in case of emergencies, but will pay it off each month if we use it. Link to comment Share on other sites More sharing options...
Brother Adam Posted October 4, 2008 Share Posted October 4, 2008 If you have any debt now, especially credit card dedt, is the time to pay it off as fast as you can, even if you have to sell some non-essentials. Link to comment Share on other sites More sharing options...
HisChildForever Posted October 4, 2008 Share Posted October 4, 2008 I only have a Debit card =] Link to comment Share on other sites More sharing options...
CatherineM Posted October 4, 2008 Share Posted October 4, 2008 We only use our card for business travel expenses that will be reimbursed. I think this was the first month that we carried a balance in over a year. That's why I was so shocked. We gave up having a car, cell phone, cable, high speed internet to work on our mortgage. We got our mortgage 2 1/2 years ago for 15 years, and by Christmas we will have it paid down to 3 years left. We are both terrified of debt, and since we both live on disability pensions, we know that our income could disappear at any time. Link to comment Share on other sites More sharing options...
Groo the Wanderer Posted October 4, 2008 Share Posted October 4, 2008 [quote name='HisChildForever' post='1670204' date='Oct 4 2008, 11:00 AM']I only have a Debit card =][/quote] Freeedoooommmm!!!!!! Link to comment Share on other sites More sharing options...
dUSt Posted October 4, 2008 Share Posted October 4, 2008 Me and the wifey have used our past 3 or 4 tax returns to go straight to credit card debt, and finally, FINALLY are debt free, except for our mortgage. With both cars paid off as well, it is a very nice feeling. The bad part is that both cars are now in need of some costly repairs which might put us right back into debt again, haha. I'm trying to talk my wife into letting me to trade my car in for a motorcycle, but she's not having that. Link to comment Share on other sites More sharing options...
Ash Wednesday Posted October 4, 2008 Share Posted October 4, 2008 Well credit cards are thievery anyway. I paid off one card this year and am in the process of paying off wedding expenses on another. I mean, they can have their place but use with great caution. Link to comment Share on other sites More sharing options...
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