oh joy!

[delSol]

I had not heard about htis, this is just wonderful...

http://news.yahoo.com/news?tmpl=stor...o_wyff/2831815

[Advertisement]

[Shann]

Wow that is crazy, thankfully I don't have credit cards. But that really sucks for those who are all ready squeezing through just to make the minimums... too bad the gov wasn't working harder to make the interest rates lower.

[stresseater]

I don't thnk it's a bad idea. It will save poor people a lot of money in interest. The real shock is when the new bankruptcy laws take effect and people have to prove that they are poor before fileing. No more fileing just to get out of debt.

[tommyjo]

I don't thnk it's a bad idea. It will save poor people a lot of money in interest. The real shock is when the new bankruptcy laws take effect and people have to prove that they are poor before fileing. No more fileing just to get out of debt.

My hubby and I have lived on virtually nothing to keep from filing bankruptcy, why would anyone do it as "a way out"? It kills your future for 7 years, no hope for a mortgage for many years. We literally lived in our pickup with 3 small girls, 3 cats and a bird, for 3 months, just so the bankruptcy word would not be in our records. JMHO

[Denise1972]

I copy and pasted the story for the OP.



New Credit Card Payment Requirements Bring Good, Bad News

Mon Jul 18, 5:47 PM ET

If you have a high balance on your credit cards, you may be in for a shock when the next bill comes.

Within the next month, Bank of America, MBNA and Citigroup will raise minimum monthly payments on their cards from 2 percent of the balance to up to 4 percent, not including interest. Other card issuers are expected to make similar changes by the end of the year.

The good news is that the time it takes to pay off a balance will take much less time -- if you have the money to make the minimum payments.

"On the good side of that, they will get out of debt faster, but on the down side, it's gonna be a squeeze," Greg Burgess, of Compass of Carolina, told WYFF News 4's Tim Waller.

Credit card companies are under mounting pressure by the government to raise the minimum monthly payments to help Americans get out of debt more quickly. If you can't afford the increase, experts recommend that you contact your credit card company and try to negotiate a lower interest rate, which could offer some relief.

"Get help, stop and look. Because, basically, it's a hole that's being dug at the point, and it just gets deeper and deeper," Burgess said.

[stresseater]

My hubby and I have lived on virtually nothing to keep from filing bankruptcy, why would anyone do it as "a way out"? It kills your future for 7 years, no hope for a mortgage for many years. We literally lived in our pickup with 3 small girls, 3 cats and a bird, for 3 months, just so the bankruptcy word would not be in our records. JMHO

There are a lot of people who do file just to get out from under. As for killing you future for 7 years, that's not true for all places. I have an aunt and uncle who are just this kind of people. They will run up huge debt and then file. They are then able to turn around and get mortgages and car loans and eventually cards as well. Then they run them up and do it all over again. It does happen and the people who do pay their bills end up getting to pay for it. I'm not saying everyone who files does it but a lot of people do. The new laws will help to eliminate this by making people pass a means test before the are able to file. If you really are broke then you still get to file, but if not then you have to figure out how to cut extras from your budget and make your payments.