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July 08, 2005

Credit Cards may hike minimum payment

There are some not so good news that may be coming from the Office of the Comptroller of the Currency (OCC).
That is according to Freedom Financial Network as published by Emedia Wire

The Comptroller Office doesn't want banks and credit card issuers to carry too much of a bad debt. That is perfectly understandable. We know what happened with Japanese banks and consequently with economy stagnation there because, not in small part, of the bad loans these banks wrote, mostly to corporations though.

So minimum payments may increase from 2 percent of the balance to 3 percent or 4 percent. The payment can go up as much as 2 times according to Bradford Stroh, founder and co-CEO of Freedom Financial Network, LLC - “The payments on a $20,000 balance could jump from $400 a month to $600 or $800 a month,” Mr. Stroh reports.

Mr. Stroh also adds that with no Bankruptcy protection because of the recent law change, consumers will have to "... seek other alternatives, they’ll find that debt resolution offers a much better option than bankruptcy, with similar (or better) outcomes and no bankruptcy judgment on their records.”

We agree with this assessment and encourage you reading the following Debt Relief and Become Debt Free pages.


 
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