minimum payment Tag

29 Sep REMINDER: New Credit Card Rules Go into Effect in 2010

New rules prohibiting unfair collection acts and practices will go into effect in 2010.  The Federal Reserve Board announced last December the approval of these new rules to better protect credit card users.  

In the meantime, credit card companies are positioning themselves to try to lessen the impact on them of the new rules.

For instance, credit card companies are taking advantage of consumers who are late with their credit card payments.  Creditors are now, without prior notice, raising the interest rate on late paying consumer’s credit card debts, by three or four, or even five times the rate it was before.

In addition, new credit card applicants are finding themselves subject to more stringent screening processes as well as a higher interest from the beginning.

The following is a synopsis of some of the new rules:

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28 Apr Debt Cures: Does Kevin Trudeau Make Money or Sense? Part 14: Slaying the Dragons

Part14 of my review of Kevin Trudeau's book, Debt Cures They Don't Want You to Know examines Chapter 19: Slaying the Dragons. The purpose of the review is to examine whether Trudeau, who has had extensive involvement with credit card fraud and the Federal Trade Commission for some of his previous books, makes any sense in this latest self-help promotion or is he making money selling empty promises? This chapter is quite short as Trudeau explains the amount of interest the reader would pay if he ignores Trudeau's advice to negotiate down the interest rate. While this chapter is short, Mr. Trudeau accurately provides the numbers on a credit card balance of $8000 at 20% interest, making minimum payments of 4% ($320) of the account balance. It would take 180 months to pay the account in full. 180 months = 15 years. That is assuming that all monthly payments are paid on time. FIFTEEN YEARS AT $320/MONTH TO PAY OFF AN ORIGINAL BALANCE OF $8000!!!!!!!
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02 Aug Top Ten Personal Finance Mistakes – Part 4

Do not pay only the minimum payments on your credit card each month. When you pay only the minimum, the credit card companies maximize the amount of interest they earn on your debt. Credit card companies make a tremendous amount of money each month on the minimum payments. They can change the price you pay after you've made your purchase. See Credit Card Issuers come under fire. They want you to stay in debt and making that minimum payments each month. Despite whast they say, you can have too much debt. To calculate your debt to income ratio, check out the Wall Street Journals spreadsheet. The secret to success is to pay off your credit cards in full each month. Never charge more than you can pay in cash when the bill comes in.
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