In an attempt to save ourselves, our Treasurer's Office recommends that credit card companies allow their customers to pay higher minimum payments, which can be doubled. This will affect at least 7% of people who currently only pay the minimum amount, and those who can only pay a fraction of the minimum.
Nowadays, ordinary consumers have 4-6 credit cards and 8-20 million credit card debts and are rising. Paying only a minimum fee and no charge will keep your debt for 30-60 years, depending on interest, late fees, and overrun fees.
The guiding principle for raising the minimum credit card was established in 2003, but banks and credit card companies need some time to relax. Some people say that they wait until the new bankruptcy law goes into effect, so their losses will be even less. There is no definite date when your credit card company begins to increase your minimum payment amount, as long as they know that they will be and may soon be. Some already have. I have read the date from July to October this year. Many people think it will happen in the last year, so we must warn.
If you can't afford this increase, what can you do?
You can contact your credit card company to see if there is any temporary payment for you. Remember that when you have such payment arrangements, they will not let you use your credit card, so at least one should be reserved for emergency situations.
You can hire a debt consolidation company to get personal loans for you and pay off all your credit cards. Personal loans usually do not have very low interest rates, such as home equity loans or refinancing your home. If you think this will not take too long to repay, or you don't have a house, then this may be the way to go. You can also hire these people to arrange payments for you or to collect some of your debts. Be careful here that any debt they "receive" for you will show up in your credit report, significantly lowering your credit score, and you will have to pay taxes as income.
A solution that includes trying to curb your spending is either getting a home equity line of credit or refinancing your home. Interest rates are lower than personal loans or credit cards and they are spread even further, so you will pay lower monthly payments. When you can afford it, you can always choose to pay more than the minimum amount.
If your debt is mild but you may need more home repairs in the future, my advice will have to be consistent with the home equity line of credit. Getting approved is only a little more than your debt and expected home repairs, so you don't have to worry about spending more time. Try to spend more than the minimum amount of time without risking cash flow.
If you have a lot of credit card debt, need repaired homes, unstable jobs or anything else that may make the situation worse, you should consider refinancing. If you have purchased a property or have previously refinanced your property for at least one year or more, you may have sufficient assets, depending on where you live. In addition, if you paid on time in the past year or more, you will have a good payment history and you should have enough credit scores to get the right rates.
If you have late payment, you may still want to consider refinancing at a higher interest rate as an interim solution. Your interest rate may be much lower than your credit card interest, so you need to pay a lower monthly payment instead of risking damaging your credit or worse, losing your home. If you pay all bills on time to pay for 1 to 2 years, you can refinance to get a more favorable price.
If you think that the increase in the minimum credit card payment will have an adverse effect on you, please decide as soon as possible what you want to do. The longer you give up, the more difficult it will be to handle in the future.
Orignal From: The minimum payment for credit cards will increase soon
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