CC minimum payment increase...HOLY COW!

[mickeyfan2]

If collective we cannot make statements about deadbeats since we never walked in their shoes, how can the collective you make statements about the collective us making a safety net for the collective you to land in? Have you ever paid the collective we's taxes?

 

[mtblujeans]

I have known for a while now, that by law, credit card companies have to increase what they require for a minimum payment. As bad as it sounds, it is actually a law FOR the consumer. It is forcing cc companies to apply more money to the principle balance.

Well, I got a little shell shocked when I opened my cc bill. It went from a minimum of $140 to $390! I always send more than double, but HAVING to payy that much, looks like I got to figure out a way to stop using my cc! if it were only that easy!

Yep, me too. I always pay more than I need to but being required to pay it rubs me the wrong way......I need to put the cards away where I can forget about them, too!!

 

[Disney1fan2002]

If collective we cannot make statements about deadbeats since we never walked in their shoes, how can the collective you make statements about the collective us making a safety net for the collective you to land in? Have you ever paid the collective we's taxes?

I just don't understand how it became a topic of "collective" vs. "deadbeat"

I thought I would share my reaction to the new CC minimum payment, and it turns into this. I am sorry I even started the thread.

Reality is...people have debt. You may not like it, but until something is done to prevent people from living beyond their means, you can't do anything about it, but complain. But by complaining, you hit a nerve with those of us who carry balances. As if we are somehow deadbeats for having balances.

The term deadbeat has been thrown around here. Someone clarified that "deadbeat" just meant the people not paying their bills. Yet, I don't see anyone on this thead saying they don't pay their bills. But they feel they are being attacked just because they carry a balance on their credit cards.

I have worked hard to keep my credit score HIGH. Having great credit has gotten me far in life. Am I living beyond my means? I don't think so. Just because I can't pay my cc off in full every month, I can still manage to send them a good chunk of money ABOVE the minimum.

I started this thread, but I refuse to take these comments personal. The fact that I use credit and carry balances is my business. I pay my bills on time every month, so the banks LOVE me.

 

[Chicago526]

I need to put the cards away where I can forget about them, too!!

That's what DH and I did. All of the cards (except my debit, but that doesn't count) are in our file cabinet. It's funny, but I don't even miss them! We haven't charged a dime since October!

I don't even worry about an emergency. My bank has 24 hour telephone banking. If the "emergency" ever happens, I just call the bank on my cellphone, transfer the money from savings to checking, and charge said emergency to the debit card. But you know what? In 12 years of living on my own, that emergency has never happened (knock on wood!). All those years of thinking "I MUST have a CC on me at all times, what if the car breaks down" was for nothing! And all the while it was in my wallet, tempting me to spend when I didn't need to.

Don't think. Just put them away, cut 'em up, freeze them, whatever. You'll be surprised how fast you'll get used to paying cash for everything!

 

[mickeyfan2]

I just don't understand how it became a topic of "collective" vs. "deadbeat".

This was not my point. My point was I cannot make any comments about others since I don't walk in their shoes, but they have no problems telling me how I need to make a safety net for them. That is telling me how to spend my money and they are not walking in my shoes. It is a two way street. The collective part was so NOBODY though it was them I was talking about. And yes deadbeat (those not paying their way in life) are my problem, since I pay to make up what they don't. More taxes, higher prices, lower SS payments that I put the money in for, you name it. Neither I nor anybody else was calling you a deadbeat.

 

[hentob]

For people who have never been in the groceries vs. medicine shoes, it's not your place to talk down to those who might be.

OMG! If I were walking in the "Groceries vs. Medicine" shoes, the last thing I would ever do is take a trip (much less MULTIPLE trips) to WDW.

 

[cardaway]

Someone clarified that "deadbeat" just meant the people not paying their bills. Yet, I don't see anyone on this thead saying they don't pay their bills.

Exactly. So why is there a problem if nobody has been called a deatbeat?

 

[dvcgirl]

I just don't understand how it became a topic of "collective" vs. "deadbeat"

I thought I would share my reaction to the new CC minimum payment, and it turns into this. I am sorry I even started the thread.

Reality is...people have debt. You may not like it, but until something is done to prevent people from living beyond their means, you can't do anything about it, but complain. But by complaining, you hit a nerve with those of us who carry balances. As if we are somehow deadbeats for having balances.

The term deadbeat has been thrown around here. Someone clarified that "deadbeat" just meant the people not paying their bills. Yet, I don't see anyone on this thead saying they don't pay their bills. But they feel they are being attacked just because they carry a balance on their credit cards.

I have worked hard to keep my credit score HIGH. Having great credit has gotten me far in life. Am I living beyond my means? I don't think so. Just because I can't pay my cc off in full every month, I can still manage to send them a good chunk of money ABOVE the minimum.

I started this thread, but I refuse to take these comments personal. The fact that I use credit and carry balances is my business. I pay my bills on time every month, so the banks LOVE me.

Disney1fan2002....don't be sorry that you have started this thread. I think these types of threads do lots of good, I really do. Lots of people lurk on these threads...and I don't think it's because a few people get revved up. I think that maybe they are in some trouble and are looking for insight. Yes, lots of people (myself included) get upset when people charge up ridiculous debt and then complain about not being able to make the payments. And I admit that I even get upset to read some of the other posts. I read a lot of the people who are carrying CC debt and read how they got into it, even ones with medical catasrophies, and I think of 10 ways that they could have avoided it. "Covering your negatives" is a part of any solid financial plan. Good health insurance, disability insurance, term life insurance and a very solid emergency fund are really must haves.

I will disagree with the last statement you make though. Having a great credit score shouldn't be a goal in life. Getting debt-free and staying that way should be the goal. This is one of Dave Ramsey's big mantras and I agree with him 110%. This is a myth that has been pushed down our throats by the banking industry. This whole "establishing credit" line of BS. I have no idea whatsoever what my credit score is. The only reason a credit score applies to ones' life is when they are looking to borrow money. And that's just not something I ever plan on doing. Now that I'm debt free, anything that I can't pay cash for is something that I can't afford. End of story.

 

[Nancy]

I just want to know when these higher minumums are kicking in? I received most of my January due bills and none are that much higher...2 are actually lower. My department store went from being a 50.00 minimum on a 300.00 balance to a 10.00 payment. (checked last years Christmas shopping bills) I will still pay the higher payment, I like paying it off in a few months instead of a whole year.


Have to add a comment about the credit score thing though. Many employers are now checking credit scores when they do background checks and insurance companies are also using credit scores to set their rates. (Lower credit score = higher insurance payment). So credit scores can effect more than just applying for loans now.

 

[mommyoeo]

If you have bad credit, you are pretty much screwed. It takes credit for almost anything these days.

Actually, someone only needs "good credit" if they plan on going further into debt. If they save up and pay cash, no one cares what their credit score is. I have a friend who is totally Ramsey-everything and she just bought a house without using a credit score. Apparently, you don't even need a credit score for a house anymore.

 

[jackskellingtonsgirl]

Our January CC statements really haven't had any increases.

We have had to make some big adjustments in the past year as far as medical costs! DH got a new job last March. The really fabulous HMO coverage we had with the old company went away, and here comes the CRAP coverage from the new company. The premiums are lower but that's beause NOTHING is covered until we meet the annual deductible of $500 PER PERSON! Oh, and because we have the insurance we pay the "contracted" amount which means we will probably never actually meet the deductible short of a major catastrope.

Our coverage states cancer screenings are covered at 100%, no deductible applies. I had a mammogram (Probably completely unnecessary at my age with no history of breast cancer). The insurance sends me a statement that they are putting the mammogram towards my deductible but I owe 100% of the cost! The mammography clinic pulled a bait & switch and did a different procedure than they were supposed to, but since the procedure is OVER they can't do anything about it! Welcome to the $320 "free" mammogram! And like someone else said, now they DO turn you over to collections for not paying in full immediately! I called and spoke to the office manager about how I couldn't very well make $320 magically appear in my bank account when the procedure was not supposed to cost ANYTHING! They gave me 90 days to pay it off. It will be paid in full by 90 days, but I am still furious! I can totally see how medical costs could force a family into debt, even WITH insurance. I was planning to pay it off slowly because I was mad about it, but we CAN pay it.

Now, can someone explain without taking my head off WHY it matters how other people manage their finances as long as they are paying their bills on time? If someone wants to have a credit card for every store in the mall and carry a balance on each one but still pay on time each month, what does that have to do with me? That's kind of up to each individual, don't you think?

 

[BuckNaked]

Actually, someone only needs "good credit" if they plan on going further into debt. If they save up and pay cash, no one cares what their credit score is. I have a friend who is totally Ramsey-everything and she just bought a house without using a credit score. Apparently, you don't even need a credit score for a house anymore.

You don't need a credit score for a house if you'll be paying cash or if you don't mind having a higher interest rate. Otherwise, it matters a great deal when buying a house.

 

[cardaway]

OMG! If I were walking in the "Groceries vs. Medicine" shoes, the last thing I would ever do is take a trip (much less MULTIPLE trips) to WDW.

HOLY COW. I had sigs turned off and had no idea.

 

[ChrisnSteph]

Actually, someone only needs "good credit" if they plan on going further into debt. If they save up and pay cash, no one cares what their credit score is. I have a friend who is totally Ramsey-everything and she just bought a house without using a credit score. Apparently, you don't even need a credit score for a house anymore.

Not true. Renters usually get their credit scores checked, sometimes they even check it when you get a cell phone. What about the employers who included a credit check in your background investigation? I had my credit checked during our adoption process to ensure that we were able to financially provide for a child. Bad credit is not something to take lightly.

 

[Chicago526]

HOLY COW. I had sigs turned off and had no idea.

In graygables defense, I think her trips were either won or paid for by family. I might be mixing her up with another poster though!

 

[ead79]

Not true. Renters usually get their credit scores checked, sometimes they even check it when you get a cell phone. What about the employers who included a credit check in your background investigation? I had my credit checked during our adoption process to ensure that we were able to financially provide for a child. Bad credit is not something to take lightly.

I wholeheartedly agree. While “improving your credit” is not a good reason to get into debt, it is very important to have good credit. You can do that without ever carrying a balance. As was mentioned previously, it is becoming more common for employers to check credit before giving a job offer (that was the case with my current job). It is also required for renting in some situations, not just for home buying.

 

[dvcgirl]

You don't need a credit score for a house if you'll be paying cash or if you don't mind having a higher interest rate. Otherwise, it matters a great deal when buying a house.

Yes, it does matter when you are buying a house...with a mortgage. However, this doesn't mean that one needs to carry a balance on a CC. Use a CC, pay it off....very simple. My only point is that having a great credit score shouldn't be the goal if the only point is to take on even more unnecessary debt. Mortgage debt, student loan debt....necessary very often and important *good* debt.

This is the kind of crap that CC companies are selling to college kids and their parents. It's really important that college age students establish credit! That's a big load of crap.

 

[BuckNaked]

Yes, it does matter when you are buying a house...with a mortgage. However, this doesn't mean that one needs to carry a balance on a CC.

No one said it did mean that. I was responding to the notion that a credit score doesn't matter when buying a house.

This is the kind of crap that CC companies are selling to college kids and their parents. It's really important that college age students establish credit! That's a big load of crap.

I totally disagree - I believe it is important for college age students to establish credit.

 

[mommyoeo]

Not true. Renters usually get their credit scores checked, sometimes they even check it when you get a cell phone. What about the employers who included a credit check in your background investigation? I had my credit checked during our adoption process to ensure that we were able to financially provide for a child. Bad credit is not something to take lightly.

I'm sure you are right! My point is that going into debt in order to have "good credit" is not necessary. "No credit" is often fine too. Pay cash in advance for your monthly service. It's an option anyway and doesn't require going into debt further. Employers would not want to see bad credit but the fact that you are not in debt at all is probably a huge benefit that shows you are disciplined, hard working, willing to sacrifice, etc. You could put any spin on that and smell like a rose.

So, I'm not trying to say that bad credit will not hurt you. Just that "good credit" doesn't have to be the goal if you are cash only. Anyone renting a house out would be pleased to see that a large percentage of the person's check is not going to outstanding debt.

Now, let me tell you a little of my history. I'm like an alcholic reading posts that a little drink won't kill you. We're cash only and we get everything we need with cash. We're living better than ever and the freedom has helped every area of our lives. Less than 5 years ago, we owed $32,000 on CCs and were charging our electricity bill sometimes because we were so tight. Nothing we had was extravagant. Some debt was grad school debt; some was medical bills. Anyhow, our credit score was 750. Anyone dumb enough to lend us money at that point would have had a sad surprise. Luckily, we stopped getting more credit lived on $80 a week, no matter what came up until we've come to this point. It was hard to see my children go without and know it was my fault. On a business trip, our co-workers were buying ice creams for thier kids and we didn't have $1.50 for ice cream because we sent everything off to debt. We've had pancakes for many breakfasts and dinners, using food coloring sometimes for variety. It was a pitiful scene, for sure! And yet, we saw progress every month and were energized like crazy. We'll pay the last card in April. So, if I come across as extreme, please forgive me. I don't intend to push my views on anyone, I'm just really excited about this stuff now. The light at the end of the tunnel is just so pretty!!

 

[Planogirl]

Have any of you dealt with a series of layoffs? I mean actual layoffs where the plant or office closed and several people were ditched without warning. Combine that with huge medical and repair bills plus old debt that a spouse managed to accumulate and a home closing in the not too distant past and then see how long your personal safety nets last.

It's not always possible to be completely prepared. I'm not saying that anyone else should pay for these problems but maybe a break for someone who is struggling and trying to pay their debts in good faith wouldn't be unreasonable. I mean such as a way to pay their bills WITHOUT doubling minimum payments for a while or another way to go besides bankruptcy.