Rise in card minimums not as bad as thought
It has been widely reported and even mentioned on this blog that the minimum payments on your credit-card might jump up from 2% to 4% in the upcoming months. It turns out this isn’t exactly true and that many of you will just have 1% of your outstanding balance factored into your monthly payment.
While this may mean some of you pay around 4% if your outstanding balance is high enough, most will be a lot lower depending on the balance, interest rate, and any other fees that you incur over the month.
While the increased rates are bad news for some, I think they’re pretty good for us as a whole. A measly one percent of the outstanding balance isn’t much, but it’s something. It also should be said that the best way to handle balances on your credit-cards is to just pay it off now rather than later. The problem is that’s just not realistic for many Americans.
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February 13th, 2006 at 10:06 pm
Great post. It’s good to hear the positive side of higher minimums.
You should submit posts like this to the Carnival of Debt Reduction. Perfect material for that.