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Posted
5.9's an intro or balance transfer rate, right? Cards are looking for any reason whatsoever to end those rates.

 

Thank God I transferred all my wife's credit card debt to better vehicles 18 months ago. In addition to cutting that debt by $20k over that time (still have $30k left, unfortunately), I managed to drop the overall average interest from about 25% to close to 12%. Had I not done that, we would be well and truly !@#$ed.

 

Yes. First they want my debt, now they dont. I understand their thinking though on the business side. Cant blame them really. Though I could take a 17K cash advance then tell them to go !@#$ off..................................not. :thumbsup:

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Posted
5.9's an intro or balance transfer rate, right? Cards are looking for any reason whatsoever to end those rates.

 

Thank God I transferred all my wife's credit card debt to better vehicles 18 months ago. In addition to cutting that debt by $20k over that time (still have $30k left, unfortunately), I managed to drop the overall average interest from about 25% to close to 12%. Had I not done that, we would be well and truly !@#$ed.

 

I finally figured out how you got married. Sounds like you found a woman that would buy anything.

Posted
I finally figured out how you got married. Sounds like you found a woman that would buy anything.

 

Most of that was supposedly spent on her hair and nails. :thumbsup:

Posted
But she looks good.

 

It was for her and not the cats right?

Oddly enough, if the stars align correctly, he'd wish it were for the cats because then he could at least write off $3500 of it.

Posted
I've mentioned this before; if the administration really, really cared about the less fortunate, the first place they'd target is the Payday-like places. These stores prey on the most desperate and upside down folks.

 

But no.

 

Isn't that state business? I am not sure...

 

Another note... How can you be preyed on when one can just revolt against the system. Can they get blood out of a stone?

 

I know Chef you said "right thing"... Is there really any right thing? The number one right thing is taking care of numero uno first!

Posted
Not to this extent PBills, the problem has been exasperated.

 

All in all, it may be a good thing, in respect to people saving more and not extending themselves so much. I do believe that it is a good thing, however, I can assure you the government and businesses do not want this. This country relies on credit extension for growth, and if credit is being reduced and people are spending as much, then guess what happens?

 

Federal and State Tax receipts go down. Which means deficits get larger, which means State budgets get reduced, which means less state jobs and services.

 

Then Businesses do less business, which means less hiring and more firing. That's the sad reality of it, and we have grown so accustomed to spend, and much of our workforce is service orientated, so when the consumers entrench themselves, then the economy goes down.

 

Hey get used to it. Pay more for less. Like I said in the health threads they are charging more and don't have to grow the services (well at least not the bogus services).

Posted
Isn't that state business? I am not sure...

Since when did this administration care about what is and isn't "state" business?

 

Another note... How can you be preyed on when one can just revolt against the system.

Good question. Too bad no one asked this question about the credit card companies.

Posted
Then Businesses do less business, which means less hiring and more firing. That's the sad reality of it, and we have grown so accustomed to spend, and much of our workforce is service orientated, so when the consumers entrench themselves, then the economy goes down.

But after some pain, it would go back up. And for the first time in a long time, it would be real.

Posted

Bad news for those with even perfect credit

 

http://www.businessrockford.com/biznews/x1...its-to-the-test

 

Annual fees for credit cards have become a rarity, but more cardholders may soon have to decide between paying them or forfeiting their cards. Last week, Bank of America said it’s “testing” annual fees of $29 to $99 on select customers starting next year. Customers were selected based on “risk and profitability,” but the company declined to explain how it decided who was charged $29, $99 or anything in between.

 

Analysts say the move is a harbinger of things to come.

 

Prepping for change

The experiment by Bank of America comes as the credit card industry searches for ways to make up the revenue it stands to lose as a result of new regulations. As part of the sweeping new reforms that go into effect in February, banks will be limited in how and when they can raise interest rates and fees.

 

That has left banks examining their books for accounts that aren’t very profitable. For example, cardholders who never carry a balance — and never pay late fees or financing costs — went unmolested for years as banks reaped profits from those who weren’t as vigilant paying bills. But in the past year, even customers in good standing have seen interest rates raised and credit limits lowered. Now, some are among those being slapped with an annual fee.

 

Domino effect?

Before the credit card reforms were passed by Congress and signed by President Barack Obama, the banking industry warned that the law could result in the return of annual fees.

 

Chase says it doesn’t have similar plans to test annual fees, and Wells Fargo and Citi declined to speculate.

 

But Greg McBride, a senior analyst with Bankrate.com, says other issuers are likely to start charging annual fees too. He noted that the fees might be applied selectively to the accounts that don’t generate revenue, to avoid alienating the more profitable customers.

 

 

 

There were about 80 million Bank of America credit cards in circulation last year, according to CreditCards.com; 1 percent of that is 800,000. Even half that figure provides a large enough sample size to make anyone conducting a scientific study envious.

 

“If (the test) proves successful, it could become the norm,” Woolsey said. “It’s somewhat up to consumer reaction.”

Posted
Further proof that a lack of executive experience equates to amateur hour in DC.

 

Another example of "unintended consequences."

 

Washington to Wall Street: "If you owe us bailout money, we're going to slash your pay by 90%"

 

Wall Street to Washington: "Ummmm...screw you guys. I'm outta here."

 

Idiots.

These populist solutions do nothing to solve these problems. Congress passes a populist Bill, and say to themselves "we showed those !@#$s", then of course these companies are like "oh ya, !@#$ you, we'll get ours". Then we're right back where we were before.

  • 3 weeks later...
Posted

 

Yeah, but the banks have to find new sources of revenue since the credit card reform Obama and company rammed down their throats. If not they'll have to cut costs and lay people off increasing unemployment and slowing the economy which will reduce consumer spending and credit card use which will further reduce bank revenue and cause more layoffs.

 

We better pay those fees.

Posted
:doh: Nineteen percent (19%) aren’t sure.

 

Count me in that 19%. Since I don't carry a revolving balance, I don't know where the interest rates are. My guess is that they are high, but I'm not certain they weren't already sky high after the promotional periods of 5-10 yrs ago expired.

Posted
Count me in that 19%. Since I don't carry a revolving balance, I don't know where the interest rates are. My guess is that they are high, but I'm not certain they weren't already sky high after the promotional periods of 5-10 yrs ago expired.

 

Same here.

Posted

I wonder if the previous administration knew what was going to happen (like duh, everybody knew how much CC debt Ameircans were carrying for quite some time) before they took the country flying off the ecomomic precipice... That is why the Bush administration pushed for stricter bankruptcy laws in the early 2000's... To protect the CC companies, knowing full well where the country was headed. Now mix in the spike in energy and fuel costs that people were putting in their gas tanks for those 8 years... What a recipe. I guess they never thought people would just "walk away" from it all by saying "eff it, who needs to keep paying on their CC."

 

Have we actually seen a consumer credit revolt? If there is actually one taking place, you bet nobody is reporting it. They don't dare report it and make things worse... If that is even possible. :doh:

  • 2 weeks later...
Posted

So if you thought that by not using your card, that you wouldn't be affected, think again.

 

 

http://www.bloomberg.com/apps/news?pid=206...id=aCLzni_O63h8

 

Amy Schiffman has had a Fifth Third Bancorp credit card for eight years to guard against unexpected overdrafts on her checking account. Now the bank wants to charge her $19 for not using it.

 

“If you’re not thinking about the card, you might forget to pay the fee, and then you’ll be facing another late fee on top of it,” said Schiffman, 26, a Web designer in Lansing, Michigan.

 

Credit card issuers, facing the highest level of delinquencies since April, according to Moody’s Investors Service, are reviving inactivity charges and reworking other fees in an effort to stem declining revenue.

 

have proliferated since President Barack Obama signed the Credit Card Accountability, Responsibility and Disclosure Act May 22, Hardekopf said, which sets limits on rates and other terms for credit cards.

 

“These are for-profit companies,” Hardekopf said. “They want to make as much money as possible. This new law has tied their hands, in their view.”

 

It's just natural, I've said this more than a few times before, if you take away a revenue stream from a company, they will just get it from somewhere else. It's just how business works, same can be said for what will happen to Health Reform, when they will end up taxing the Drug companies, medical device makers, excise tax on "cadillac" plans and the overall health insurance industry. Bank on it!

 

Thanks W.H and Congress, you guys are really doing a great job :D

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