A New Wrinkle Appears Concerning Credit Cards

[coolhand]

Let's see...we've changed thebankruptcy laws arenow banks are going to begin doubling minimum payments on credit cards.Not a bad thing, but those folks who haven't read the writing on the wall and are living beyond their means...look out.

http://tinyurl.com/d9jzv

[mlk_man]

http://www.tsptalk.com/mb/forum22/2153-2.html

[coolhand]

mlk_man wrote:
http://www.tsptalk.com/mb/forum22/2153-2.html
Sometimes I just can't get caught up with all the posts...lol

You can have your thunder back now...;)

[grandma]

coolhand wrote:
mlk_man wrote:
http://www.tsptalk.com/mb/forum22/2153-2.html
Sometimes I just can't get caught up with all the posts...lol
You can have your thunder back now...;)
Wait , now -don't go yet -did you see my question to Mlk's post? ...about consolidating several CC bills into one, paying the 4% on that, dealing w/only one statement? There was more in the post, but I think that is the gist of it....

[mlk_man]

coolhand wrote:
mlk_man wrote:
http://www.tsptalk.com/mb/forum22/2153-2.html
Sometimes I just can't get caught up with all the posts...lol

You can have your thunder back now...;)
LOL, me first, me first!! :P

[coolhand]

grandma wrote:
coolhand wrote:
mlk_man wrote:
http://www.tsptalk.com/mb/forum22/2153-2.html
Sometimes I just can't get caught up with all the posts...lol
You can have your thunder back now...;)
Wait , now -don't go yet -did you see my question to Mlk's post? ...about consolidating several CC bills into one, paying the 4% on that, dealing w/only one statement? There was more in the post, but I think that is the gist of it....
Consolidation usually helps, but folks must gain an understanding of how they got into that debt situation in the first place and have a plan going forward to ensure they don't allow themselves to fall victim again.That meansunderstanding a credit card lenders terms of agreement before they agree toaccept any credit card.Many of these lenders have teaser rates to get you hooked. Those rates may start at 4% for instance and the lender charges that rate for a finite period of time, say 6 months. At the end of that 6 months the interest rate suddenly jumps to perhaps 18%, making it much more difficult to pay down.

It is imperative that peopleunderstand what an 18, 20, or 22% interest rate means! Those are appalling rates given the low interest rate environment we've had for the last few years. The people who usually get those rates are the ones who can least afford them.

My point is simply that getting a consolidation loan may not be enough. Too many people get that consolidaton loan withoutunderstanding the circumstances of their financial health and well-being. They do not understand credit percentages and do not recognize what they can afford and what they cannot.

These lenders make it all too easy to trap people in a hopeless situation. Without a good understanding of personal finance people can become trapped once again. I have a very dim view of this process.

So you see Grandma, the answer is not simply to get a consolidation loan, we must also become educated consumers. There is a great deal of information about this on the internet. I've only scatched the surface.

http://www.fool.com/ccc/secrets/secrets.htm

[grandma]

coolhand wrote:
These lenders make it all too easy to trap people in a hopeless situation. Without a good understanding of personal finance people can become trapped once again. I have a very dim view of this process.

So you see Grandma, the answer is not simply to get a consolidation loan, we must also become educated consumers. There is a great deal of information about this on the internet. I've only scatched the surface.

http://www.fool.com/ccc/secrets/secrets.htm

Very true, and I addressed that in my posts (10:30 & 11:35): http://www.tsptalk.com/mb/forum22/2153-2.html

The question was mostly toverify for others that may be carrying excessive CC debt, that perhaps a consolidation before these extra charges take effect would help them get through those monthly payments. It wouldn't necessarily free up extra money for other spending. I should think that any responsible company who deals with consolidating loans would also require some sort of education be given.

Thanx for sharing The Motley Fool site.

[coolhand]

grandma wrote:
It wouldn't necessarily free up extra money for other spending. I should think that any responsible company who deals with consolidating loans would also require some sort of education be given.

Thanx for sharing The Motley Fool site.




Once a consolidation loan is executed, the money that has been freed-up should not be viewed as disposable income IMO. Rather it is money that should be saved and/or used to continue paying off "bad" debt. Minimum payments do not usually cut it.

Sadly, we've all read about "companies" who promise to help people get out of debt, but who instead have only their own interests in mind. We must always know who we are dealing with. Always check out an organization's credentials.

Thanks for taking this subject a little further Grandma! I hope folks are listening.:^

And thanks to MM too for getting it started! ;)

[mlk_man]

You know the ole' saying "If I only knew now what I knew then". No wait, that's what you say when you get "sometimers", sometimes I remember sometimes I can't.

Let's see, "If I only knew then what I know now"? Yeah that's it! To all you young people out there, listen to your elders! I've actually convinced some of my younger relatives and friends to open up an IRA account and pay attention to it. If I'd done this back in my 20's, who knows where I'd be today. I might even be on TV hosting "MM's Mad Money". Of course I could also be broke after being sued for trademark infringement.........................:shock:

C fund just went positive.................

M_M

[Rolo]

mlk_man wrote:
Of course I could also be broke after being sued for trademark infringement.........................:shock:

...Or be broke 'cos of your trading! behehehehehhee :l

[Bullitt]

Lest, all good things must come to an end. You have to read this article, it just cracks me up. The powers that be cracked down on the swipe fee that has basically run more than one 'little guy' out of business after a month.

Here you've got some guy from a bankers union saying how the companies will not hire with this extra cash, but will instead fill their coffers. He claims banks would be better off to lend the money to people. Give me a break. You know this money would just goes into the lottery, aka the grand casino, aka the futures market anyway. $40 Billion just for swiping a card through a machine is about as bad as charging $10 for a NY State law enforcement fee when the yearly renewal of an auto insurance policy comes up.

At least with the minimization of the swipe fee, retail prices will continue to spiral downwards, keeping in line with our deflationary theme.

http://sg.wsj.net/public/resources/images/OB-IY964_swipe0_NS_20100621222242.gif

[Silverbird]

Companies will not hire with the extra cash??? Of course they won't, the banks won't lend them any money anyway to invest in workers.:suspicious: They might just have to use that cash to buy something they need now, like merchandise. As if the banks have been hiring with the extra money, uh huh.

[KevinD]

Lest, all good things must come to an end. You have to read this article, it just cracks me up.

This article?

http://online.wsj.com/article/SB10001424052748704256304575321162658897880.html


"We kind of view this as a direct transfer of dollars from the consumers' pockets to retailers' bottom line," said Ken Clayton, senior vice president of card policy for the American Bankers Association. "Who ends up feeling the burden from this? Financial institutions lose a revenue stream that allows them to offer other services to low-income consumers."

:blink: :rolleyes: