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Us Banks "double" Minimum Cc Repayments!

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Dunno if this has been mentioned . . . . .

So far, MBNA, Citibank and Bank of America have announced they are doubling minimum monthly payments on credit card balances from 2% to 4%. Others are expected to follow suit quickly.

To some cardholders, that could be seen as a good thing. To others it could be devastating.

Over the past few years, low minimum payback rates of between 2 and 2.5% have encouraged Americans to spend, spend, spend -- and to rack up an average credit card debt of close to $10,000 per household.

"People are now in a revolving debt cycle that they'll never escape," says Adam Brauer, a debtor advocate and in-house counsel for Debt Settlement USA in Scottsdale, Ariz."

"If you're living paycheck to paycheck and your minimum payment goes from $200 to $275, spread over five cards, that's an extra $375 a month," says Brauer. "A lot of families can't come up with that."

The banks already know that and are planning for it. Bank of America, one of the first to raise minimum payment requirements, worked an extra $130 million into its 2005 budget to cover projected losses from defaulting cardholders.

Well, when it reaches here it's curtains for . . . . .

BTL CC deposits

Overstretched FTB's

B&Q

Homebase

ie 1,000's of jobs on the line

etc

One more 'WAFER THIN' swipe of the card - Sir?

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So far, MBNA, Citibank and Bank of America have announced they are doubling minimum monthly payments on credit card balances from 2% to 4%. Others are expected to follow suit quickly.

This is dynamite. The credit crunch, many of us have been predicting, is about to happen.

Rollin', rollin', rollin'...

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Guest KingCharles1st

You are not factoring in the fact that CC Companies also RAISE the interest rate they charge you, as you start to default- I suppose they consider this to be some sort of house management. But obviously it is the WORST thing they can do for many lenders who genuinely don't have the money available to repay the debt.

Been there , got the T shirt..

Also, been so far down that road- to the point where the companies appointed collector scares the shit out of you, makes you repay far more quickly than you would ever believe, to avoid, court etc, and THEN- "If you make us this payment now, we will settle for 75% of the balance.."

Never going there again, BUT,they ARE stinking shits- NOT because they wan't their money back- but because they leand it to desperate people in the first place, who would be far better off owning up to their financial difficulties say 6,12,18,24 months earlier.

It's the same denial factor that allows people to "chase the market down," instead of doing the sensible thing of "fessing up" and going for an early "loose," and selling their house a bit cheaper but lots earlier, and in doing so, loose sight of a potential situation.

Edited by KingCharles1st

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This move has come from the top, too little too late.

http://moneycentral.msn.com/content/Bankin...rts/P117014.asp

"People are now in a revolving debt cycle that they'll never escape," says Adam Brauer, a debtor advocate and in-house counsel for Debt Settlement USA in Scottsdale, Ariz. "So the government nudged credit card companies into saying, 'This isn't working.'"

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This is dynamite.  The credit crunch, many of us have been predicting, is about to happen.

Absolutely. This is a major turning point for the economy IMO. If nothing else because people will fear that this increase in repayments won't be the last. First 2%, then 4% then ?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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