Could you handle a minimum payment increase from 2% to 5%?

Beware for those carrying a balance on any credit cards, but from what I read Chase has been a big player in this move to have minimum payments move from 2% to 5%. That is cutting the payback plan more than 1/2. If you can handle the payments, I guess this is a great forced savings/pay down debt plan. But what of those that can’t afford it? It is going to cause even more people to go into default and probably eventually go into Bankruptcy. I also believe I read, that people can agree to keep the 2% but you must “close” or “freeze” the account, which means you will no longer be able to use that card. Again, you can look at this as a forced living within your means type of rule, but it can be scary if that credit card was also used for any emergency repairs that may come up, ie car repairs, AC/Heat goes out, leaky roof.

Could you handle that increase in your minimum payment of your credit cards? Actually that may be another forced savings plan, start increasing your minimum payment on your credit card(s) by 1 percentage point. Especially if you carry Chase, because that letter may be coming to your mail box soon. There are mixed messages as to if other banks are going to do the same on their credit cards. Preparing now may be the best way to keep yourself out of trouble down the road.

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~ by debt2dreams on September 28, 2009.

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