TJ Maxx Card going up to 34.99% interest just got a mailed notice, whaaaat - when is it a usury offense?

[QueenIsabella]

Another "trick" to look for--Synchrony Bank, which issues the HSN card, charges $1.99 per month for paper statements. I'd gotten a card for a discount, only used it at HSN (which is to say, not very often), and paid off my balance each month. So, I never paid attention to the interest rate or fees. Then they sent the letter announcing the statement fee, and I cancelled the card. I have much better credit cards with no statement fee.

 

[NotUrsula]

I'd like to see layaway come back for low-income purchasers, but I don't think it will happen because of the space it takes up; the goods were literally "laid away" in the store's back room until paid for. Most stores have converted that extra square footage to other uses now that just-in-time inventory stocking is the norm.

What might become an option for some stores (particularly those that own their own banks, as WalMart does) is a store-specific "Christmas Club" type program; a deposit-account to be used to save up for the shopping you might do there, probably with some sort of very small discount or rebate as an incentive to sign up, and then users would do their shopping with a store-branded debit card. I could see it being done by retail groups, such as -- yes, TJX, in which case you would have 5 chains to shop at with that money.

 

[LuvOrlando]

I'd like to see layaway come back for low-income purchasers, but I don't think it will happen because of the space it takes up; the goods were literally "laid away" in the store's back room until paid for. Most stores have converted that extra square footage to other uses now that just-in-time inventory stocking is the norm.

What might become an option for some stores (particularly those that own their own banks, as WalMart does) is a store-specific "Christmas Club" type program; a deposit-account to be used to save up for the shopping you might do there, probably with some sort of very small discount or rebate as an incentive to sign up, and then users would do their shopping with a store-branded debit card. I could see it being done by retail groups, such as -- yes, TJX, in which case you would have 5 chains to shop at with that money.

Layaway was such a help when we were raising our kids. I always wondered why they got rid of it to push people to online impulse buying, it really is in the best interests of brick and mortars to play to their strengths and this particular offering is a strength.

It is foolish of standing store to not offer the layaway policy popular since the 50s since it could put stores in the black especially since nowadays it is a retro innovation.

 

[willowsnn3]

Just got the same letter today for my Citibank MC. I don't use that one often but I do have a balance. Thankfully last year my income has gone up a bit & I have been able to pay off some cards that I will no longer use. Looks like this one will be the next I concentrate on paying off & discontinuing use of.

 

[Mackenzie Click-Mickelson]

Is this the APR assigned if you only pay the minimum payment but have a leftover balance or is this the penalty APR if you pay late or the payment was returned?

 

[Babs Johnson]

Occasionally I’ll get an unsolicited credit card offer in the mail with a ridiculous interest rate like this.

I think my Kohls and Home Depot cards have a 29.99% rate, but I almost always pay all my cards off in full when due.

 

[LuvOrlando]

Is this the APR assigned if you only pay the minimum payment but have a leftover balance or is this the penalty APR if you pay late or the payment was returned?

Just regular everyday interest on charges that sit there.

 

[longboard55]

If you use store credit cards they give you so little time to pay it is almost impossible not to carry a balance. I stick to 2 cards now. One visa one MC and pay once a month before the first online, haven't had a interest charge in a long time

 

[EACarlson]

What might become an option for some stores (particularly those that own their own banks, as WalMart does) is a store-specific "Christmas Club" type program; a deposit-account to be used to save up for the shopping you might do there, probably with some sort of very small discount or rebate as an incentive to sign up, and then users would do their shopping with a store-branded debit card. I could see it being done by retail groups, such as -- yes, TJX, in which case you would have 5 chains to shop at with that money.

Target offers this with their "Reloadable Red Card." You can add funds to it in multiple ways and you get 5% off when you use it in store. I've got one that I will put cash on and get 5% off the things I was going to buy at Target anyway.

 

[jalapeno_pretzel]

I've always paid mine off every month and never carried a balance.

Many families are using CC to be able to afford groceries, gas and other necessities.

If they can't pay it off, then they can't really afford it. A credit card doesn't help you afford something other than maybe giving you discounts or cashback somewhere, it just postpones (and massively grows) the inevitable payment that will have to be made.

 

[EACarlson]

US credit card debt is $1,142 TRILLION in the second quarter of 2024!!! Highest it's been since they started keeping track in 1999!

Many families are using CC to be able to afford groceries, gas and other necessities. It's the elephant in the room that most people don't want to talk about this election season.

https://www.lendingtree.com/credit-cards/study/credit-card-debt-statistics/

I think you've got a comma where it should be a decimal. 1.142 trillion or $1,142,000,000,000 is the correct number.

 

[The Mayor]

I've always paid mine off every month and never carried a balance.


If they can't pay it off, then they can't really afford it. A credit card doesn't help you afford something other than maybe giving you discounts or cashback somewhere, it just postpones (and massively grows) the inevitable payment that will have to be made.

I know that but for many families it’s either use the CC or do without. Long range financial risk gets lost in the shuffle when the immediate need is to put food on the table.

 

[The Mayor]

I think you've got a comma where it should be a decimal. 1.142 trillion or $1,142,000,000,000 is the correct number.

I fixed it for you.

 

[greeneyedchick]

Does layaway exist anymore? I think it's been at least 25 years, or more, since I've seen it mentioned.

Burlington Coat Factory offers laywaway

 

[LuvOrlando]

Burlington Coat Factory offers laywaway

Do they? Good, the US needs people friendly stores. I have one nearby and love them for costume jewelry in particular, like lightweight big girlie rhinestone earrings when I want something fun and they have lots of purses too. They used to have great deals for young mens suits as my son went through Middle & HS, haven't seen a solid assortment of mens dress clothes anywhere in a while though. They do have colognes and sunglasses though. Certainly a place to get some decent Christmas shopping done.

 

[RangerPooh]

I received a similar email from Firestone tires. I try to use this card sparingly, but when you need new tires it's not as easy to put off. It said 35% but could go up to 39%!!!

 

[Kathryn Merteuil]

That is outrageous

 

[tony67]

That is outrageous

Yes it is.

I suspect many people have no real idea just how high the interest on their credit cards are or pay all them much attention.
They just pay the minimum and go on their way spending and spending.
If they have to put food on the table then what else can they do.
Some folks would be better off not working and applying for benefits from the state, but that depends on the state.
Some people want to work - even though they would be better off not working.

Back to the Cc scam, how many college students get credit cards and overspend with no clue what it will cost them in the end.
Student loans are bad enough, but these CC with 25% interest . .just nuts.
And they give them 20k credit lines.

 

[tony67]

I think you've got a comma where it should be a decimal. 1.142 trillion or $1,142,000,000,000 is the correct number.

well the government is at 35,176,381,560,123+++ so....

 

[QueenIsabella]

Yes it is.

I suspect many people have no real idea just how high the interest on their credit cards are or pay all them much attention.
They just pay the minimum and go on their way spending and spending.
If they have to put food on the table then what else can they do.
Some folks would be better off not working and applying for benefits from the state, but that depends on the state.
Some people want to work - even though they would be better off not working.

Back to the Cc scam, how many college students get credit cards and overspend with no clue what it will cost them in the end.
Student loans are bad enough, but these CC with 25% interest . .just nuts.
And they give them 20k credit lines.

Well, I don't think they give students $20k credit lines. My students (18 and 21) have their own credit cards, and the limit is more like $2000. Both pay them off ASAP--like, when their paycheck lands--because they don't like to owe. I guess I've done something right...so far. They are also both authorized users on my cards--one card each--in case they need access to a lot of credit (car breaks down 200 miles from home, emergency flight, etc.).

The rest of your point stands, though--most students look at their shiny new credit card and think, "Gosh, this is exciting! Free money! I can finally buy some cool clothes!" or whatever.