How about those new credit card laws?

**Telephus44** · 10-13-2005, 06:15 PM

Background: DH and I have "half-merged" money. We agreed when we got married that I would pay off my car and he would pay off his (done, next car will be a joint purchase) and that he would pay off all of his credit card debt and I would pay off all of my student loan debt.

DH - who hates to think of "borrowing" money from his wife - called me at work today to say that he received a notification from Chase about one of his credit cards. Mind you, he has been really going to town on paying it off, no new charges in 6 months, and the balance has dropped from 11K to 7.6K in the last 2 months. Today he gets a little notice saying his interest rate has gone from 14.24% to - get this - 30.49%!!! That's right, over 30%!!! Needless to say, we're coming up with a plan to wipe all of this out before the rate change (we have until at least Nov. 4th, possibly Dec. - wording is confusing as to when the rate change will actually go into effect).

I guess on the bright side it will be great to have the debt wiped out - on the bad side is that approx $4500 will come from my EF (sigh). We're going to have to sit down this weekend and hammer out the exact details.

Just wondered if anyone else got any "shocking" news in their credit card statements this month. Makes me even more glad that I never had credit card debt!

**Kimberlina** · 10-13-2005, 06:31 PM

Can't you just transfer that balance to a 0% card until it is all paid off?

**Kimberlina** · 10-13-2005, 06:31 PM

Or, call and tell the company if they don't lower it you will transfer it. That often works.

**SHOPGIRL** · 10-13-2005, 07:06 PM

Sara,

Yes, I've had friends this has happened to. Chase is the one doing it. So far, I haven't seen this in any of my credit card statements. I did hear that the minimum payment was suppose to be rising from 2% of the balance up to 10% of the balance.

It's a good thing you have a large emergency fund, plus the new jobs. You can always offer your dh a better interest offer, say 15% rather than 30% to Chase...just kidding!

On a brighter note, think how great it will feel for both of you to have zero credit card debt sooner rather than later.

**Michelle** · 10-13-2005, 07:17 PM

Whoa....if that happens to me, I will be transferring to a card with a 0% interest rate. I get enough of their offers on a daily basis

**pkellyc** · 10-13-2005, 08:04 PM

I always pay in full and liked knowing I had them in emergencies. I have not really looked at any of them but I will now. I think that is terrible to prey on people who carry debt, after all they are the same people who are keeping the bread and butter (or should I say caviar at those rates) on their tables.

**Telephus44** · 10-13-2005, 09:46 PM

Originally posted by SHOPGIRL
Sara,

Yes, I've had friends this has happened to. Chase is the one doing it.

And you know what I find ironic? At my new job, my largest account (the one I was hired to service) is - get this - J P Morgan Chase!

I did tell DH today that he has to call tomorrow and tell them that if they don't lower the rate that he's going to transfer to another card. I honestly don't know if he'll do it (he HATES doing things like that) but I'm hoping that he will. I saved two credit cards offers from today just in case. They weren't the greatest, but if he really wants to go this route I'll shop online and find a card with a 0% transfer. Since we're on split shifts we won't really discuss this until the weekend, but he called me at work today to tell me so it wouldn't be a surprize on Sat. morning.

**Dixie** · 10-13-2005, 10:34 PM

Chase raised the interest on my card to 27.49% and dh's card to 21%.

Neither of us had ever been late, over the limit or anything. Grrr. We transferred both accounts to a 0% Citibank card. I wonder when Chase decided to be a loanshark?

**bamamomto4** · 10-13-2005, 11:18 PM

We dont have a Chase,but if I did and my rate went up that much,I'd transfer to a diff card.

Hope you two get it straighten out this weekend!

**RuthNY** · 10-14-2005, 07:06 AM

A co worker said something about his cc going up to over 30% and in the back of my mind I didn't believe him...WOW! It's really true!?!?! Loansharking is right!!! Especially if payments are on time etc. I wonder if it's because they make no money if you don't incure more debt or don't create fees.

I currently have $600 on my Chase card @ 0%. I'll keep it going till it's paid off in Dec then that card is being cut up and account closed!

**daddys3chicks** · 10-14-2005, 08:55 AM

Yikes! That would have really sunk us if we weren't already capsized! It's kind of like overdraft fees at the bank - do they really think if you are maxxed on your CC you can AFFORD to pay that kind of interest? Wonder how many more defaults that wil cause for them?

**Jayne** · 10-14-2005, 09:12 AM

That rate is just plan insane!!!...Something needs to be done about these loansharks!!!...

**Jellybeanz** · 10-14-2005, 11:05 AM

Well they more than doubled our payment this month. We were already paying what we could over the minimum ( usually around $50.00 , give or take, depending on Mr. Murphy paid us a visit ) . So now we are really in a bind, and our interest rate was/is pretty low. But I guess that's next........

I think that this is going to send a lot of people into default , which they don't care, since the new bankruptcy laws will ensure consumer's can't skip out on them basically.

It's disheartening, to think that we always pay early, always pay over minimum, try to be a "good" customer and still get screwed, to put it bluntly.

**SHOPGIRL** · 10-14-2005, 04:49 PM

Well, I for one will be so excited when I am credit card free. At 20%, cc companies are still making money. 30% is totally ridiculous.

I'll be curious to see if any other cc companies raise their rate like Chase. Thankfully, I don't have any Chase accounts anymore.

Posts like this encourage me to pay even more on my cc's. I for one am totally motivated to not buy anything. When I'm out shopping, I'll pick something up, think about buying it...then, I think...do I really need it, and second, where am I going to put it. 95% of the time, the item gets put back on the shelf.

I know I have some things to return, so I think I'll find the receipts and return more items to the store so I can get a credit.

**LadybugDreams** · 10-14-2005, 05:56 PM

Earlier this year Chase did this to us as well....my hubby had 10.9% interest on his Chase then all of a sudden I noticed it was 27%!! We didn't get a warning or anything....he called Chase and they said they will lower it to 17%. We took that then closed the account the next day....transferred the entire balance to our Bank of America for 0% . and payed 1/2 of that balance right away to Bank of America....I can't believe they could get away with that!