New credit card debt repayment rules???

1104 Views 15 Replies 12 Participants Last post by BR, Dec 5, 2005

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Discussion Starter · Dec 1, 2005

I've been hearing that there are new credit card debt repayment rules becoming effective in '06 that will require higher payments each month, anybody know anything about this???

I'm thinking of paying off one of my three cards if this is the case.

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JasonB

· #2 · Dec 1, 2005

pay it off now anyway...

http://www.bankrate.com/brm/news/debt/20050511a1.asp
http://moneycentral.msn.com/content/Banking/creditcardsmarts/P117014.asp

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Patent Pending

Discussion Starter · #3 · Dec 1, 2005

Well, that kinda sucks, but I guess it is smart to pay it off anyways. If my tranny can hold out (which it seems like it will now), I'll probably pay my Chase Visa off after Christmas. I'm graduating in December, so between working more, driving less, and the possibilty of a fat raise in the near future, I'll be fine. I think I'll try to pay about the same as what I do now (possibly even more) every month, but that will go to 2 cards instead of 3, so hopefully I can get at least one of those cards paid off in the next year too. Then that would just leave me one card to pay off. Same plan, but bigger balance on that one, so it might also take a year to pay off. I'm hoping to be free of credit card debt within 2yrs. That would free up some money to put toward a car payment or mortgage. I'm trying to get everything in order debt wise so I can get a house and a new truck ASAP.

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mopar

· #4 · Dec 1, 2005

buy a house .... i wish i would have

my 98 ram needed about 2 grand to be fixed back to great running shape with no problems, and it was paid off ........ i traided it in on the 02 ctd got a car payment and i droped almost 2 grand of {expletive} for it i did not need...... i think back and realize i am a moron if i would have kept the 98 them i could have bought a house

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halo 216

· #5 · Dec 1, 2005

Yeah i am hopin with tax return i can be paid off and start buying houses the following year.

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Discussion Starter · #6 · Dec 1, 2005

I'd like to buy a house by the end of next summer. Real estate is super cheap out here, and my g/f has a leased apartment that she needs to be out of in August. She makes good money too, so a house might be in order around August.

I don't "need" a new vehicle, so I'd like to get a house first. I'm sick of throwing my money away on rent every month, even though my boss owns the house and rents it to me and two buddies for very little. I'm ready to have a house with a big shop, and start getting nice things, and feel like I actually own something.

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Patent Pending

Discussion Starter · #7 · Dec 1, 2005

Yeah, a fat tax return would be nice. :bigthumb: If I get one, I'll probably put at least half of it right toward paying off my credit cards.

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WMIF

· #8 · Dec 1, 2005

not to sound like a jerk or anything, but how can you carry a balance on a credit card with an interest in the sky of like 15% or more?

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does it matter

· #9 · Dec 2, 2005

On 2005-12-01 15:55, HaWiiLuVeR wrote:
not to sound like a jerk or anything, but how can you carry a balance on a credit card with an interest in the sky of like 15% or more?

very easily.

some of us arent rich.

you need things that you cant afford to pay up front.
alot of us dont have $2000 in cash that we can just whip out if something major happens, so it goes on the card and you make payments.

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BR

· #10 · Dec 2, 2005

i buried myself in credit card debt pretty good while in college. couldn't work full time, father deceased, mother with no job that i hadn't lived with since i was 3. between car insurance on a car i owned outright, just liability, gas, food, clothes, which wasn't too many, rent, power, it doesn't take long. i'd max out the student loans, and it still wasn't enough. i'm finally just about out of it, but i'm paying $340 a month onto them. it doesn't take long to realize that even at 7% interest on $4000, on 4 cards, you are paying a fortune in finance charges, it will piss you off so you want to pay it off. i refuse to buy a new truck with financing, so hopefully in about 3 months i'll be putting that $340 a month extra into my savings to go toward a truck. my friend has a passat, and his payment is $347 a month, and $186 is just financing. i refuse to do it.

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Jason

· #11 · Dec 2, 2005

On 2005-12-01 15:55, HaWiiLuVeR wrote:
not to sound like a jerk or anything, but how can you carry a balance on a credit card with an interest in the sky of like 15% or more?

Being young and dumb. I learned the hard way. $200 in credit card debt turned into $650 in no time.

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SG

· #12 · Dec 2, 2005

On 2005-12-01 15:55, HaWiiLuVeR wrote:
not to sound like a jerk or anything, but how can you carry a balance on a credit card with an interest in the sky of like 15% or more?

I never did...I was lucky enough to have a loser boyfriend do it for me. He told me he was gonna pay me back but never did, then later i dumped him and that was that.

Is it worth it to bring him to court and pay thousands more for a lawyer? no. So im just paying it off myself. Its worth it to be free of him even if I have to pay a bill. Even if I had to pay double what I am now, it would still be worth it :rotfl:

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DirrrtyBlonde

· #13 · Dec 2, 2005

im working at H&R Block in spring doing returns.. anyone need advice to a get a fat return next year, let me know... im good like that :bigthumb:

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4wDakota

· #14 · Dec 4, 2005

On 2005-12-01 15:55, HaWiiLuVeR wrote:
not to sound like a jerk or anything, but how can you carry a balance on a credit card with an interest in the sky of like 15% or more?

:withstupid:

Anyone who only makes the minimum payment on their credit cards needs to learn money management.

Buying something and only being able to pay for 4% of it is a :bad:

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Tufiremn

· #15 · Dec 4, 2005

If you own a vehicle out right, then you can take out a loan to pay off a high intrest card. Just make sure that the intrest on the loan is a lot lower than whats on your card. You'll also have to have full coverage on the vehicle, and your monthly payments will be higher than what the cards minimum was, but you'll get out of debt quicker. Oh and cancel the card after you pay it off, or you'll just end up even deeper than you where to begin with.

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BR

· #16 · Dec 5, 2005

not to sound like a jerk or anything, but how can you carry a balance on a credit card with an interest in the sky of like 15% or more?

how much different is that than having a loan at 7-10% on a car for $35000? the interest payment each month on the car is unreal. the only difference is that the car payment has a term of like 5 years. these new rules will help get the cards paid off faster. however, some people use cards to get them through a hard time, so these new rules are going to hurt them. if they want to put a stop to everyone being in debt, maybe issuing 10 cards to one individual with a $5000 line on each one should be stopped. lower the credit available, and limit it to like 2 per person.

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