Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Credit card minimum payment is about to rise

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August 05, 2005

Credit card minimum payment is about to rise

According to the WTLX, five major credit card issuers have already complied with the latest requirement from the Office of Comptroller of Currency which asked them to raise the minimum monthly payment.

It is good and bad. Good is that it may curb some outrageous spending habits and make people think twice before pulling their credit cards with the ease that has so many sinking in debt. In few more cases the higher payment hopefully will be high enough to make a little dent in the principal of credit card debt. The current minimum payment of 2% is often not enough to pay the monthly interest charges.

Bad is that for most people, it will likely only mean higher minimum monthly payments, that's it. Combine it with higher penalties for being late or going over the balance, and some folks can be in for harsher times.

Posted in Credit Cards at August 5, 2005 12:22 PM

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