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

[cabanafrau]

Burlington Coat Factory offers laywaway

I don't think I've seen a Burlington in at least 15 years either, so I had no idea. Layaway is definitely preferable than burying yourself in debt, I just didn't think it was offered anymore.

 

[CAPSLOCK]

Unfortunately, many people don't get any kind of financial education in school. So it comes on parents to teach their kids about good habits / credit / debt / finances. My roommate has said he wishes he learned about credit cards earlier, because he is now struggling with credit card debt. He just opened a new card for balance transfer, with 0% interest for 15mos. The plan is to pay off as much as possible on the cards accumulating interest in those 15mos. Hopefully find another 0 interest card to do another balance transfer after that, and within those 3 years he should get everything down to at least reasonable.

He chose the Citibank card to transfer the balance from and pay off first - because that one is the one that increased the interest rate and the entire balance is slowly transitioning to the higher rate with new interest charges. It's aggravating just to look at the bill. That one will now be paid off within a few months.

 

[White Cat]

As mentioned CC cards aren’t designed to carry balance. Just used and paid off at the end of the month. At a time credit card companies would sit on college campuses and issue $1000 limits to students with no credit. The idea was that they knew the odds of the student getting into trouble, racking up interest was good odds and that the parents would bail them out of it. At least once.

 

[china mom]

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.

Love it. I just helped my son apply for his first credit card and as we were looking at the options I told him not to worry about which one had the best interest rate because if I ever caught him paying interest anyway there would be trouble

I told him to think of it as a "convenience card, not a credit card because he should not spend on it unless he already has the money to cover his purchase in his bank account.

Now, this only works currently because he is still at home with few expenses and we are his safety net but I have been drilling two things into him since he was a old enough to listen - "wrap that rascal" and never pay credit card interest.

 

[QueenIsabella]

Love it. I just helped my son apply for his first credit card and as we were looking at the options I told him not to worry about which one had the best interest rate because if I ever caught him paying interest anyway there would be trouble

I told him to think of it as a "convenience card, not a credit card because he should not spend on it unless he already has the money to cover his purchase in his bank account.

Now, this only works currently because he is still at home with few expenses and we are his safety net but I have been drilling two things into him since he was a old enough to listen - "wrap that rascal" and never pay credit card interest.

My son went with Wells Fargo because we do a lot of business with them. He just had a minor issue--he's ordered his college books with it (fair enough), then it got a fraud warning. They're sending him a new card, but the books have come in, and the card they have on file doesn't work (of course). He doesn't have his new card yet. I told him, this is the kind of emergency where he can use Mom's card (and pay me back). Or use his debit card. Something--he needs those books, college started yesterday.

 

[disneyseniors]

First it was Macys jumping the shark now TJ Maxx Card going up to 34.99% interest, whaaaat

I don't carry a balance but when the kids were young I did for back to school shopping so this is downright scary to me on behalf of young families

I feel sorry for young families, too, when trying to buy basics for their family.
When we were young and had our kids, I always bought with a card and paid it off in installments. I couldn't afford the outlay for their clothes all at once. But I imagine that "back then", the pay you earned working was much less than now. I also bought at nice yard sales before they went to school because kids hardly ever wore out their clothes at that young age. I imagine the young families now get assist from other means or charge things. I really wonder what will happen with this endless cycle of higher prices and interest rates.

 

[robinb]

As mentioned CC cards aren’t designed to carry balance. Just used and paid off at the end of the month.

There is a difference between Charge Cards which are not meant to carry a balance (like the old AMEX cards) and Credit Cards which are absolutely meant to carry a balance. The banks make most of their money on interest.

 

[LuvOrlando]

As mentioned CC cards aren’t designed to carry balance. Just used and paid off at the end of the month. At a time credit card companies would sit on college campuses and issue $1000 limits to students with no credit. The idea was that they knew the odds of the student getting into trouble, racking up interest was good odds and that the parents would bail them out of it. At least once.

I think they weren't originally intended to carry credit but now all they want is me to spend. I just got a $5K bump up on a card, now I appreciate it because it helps my rating but it sure is a dangerous thing to dangle

 

[LuvOrlando]

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