A real wake up

[DYLAN150]

Just received my monthly credit card statement. Because of the new laws it says on the bottom: If you make no additional charges on this card and pay only the minimun payment it will take 34 years to pay this card off. (year 2044)
Ok, Let's see, I am now 62 so it will be paid off when I am 96. This means that I could buy a house with a 30 year mortgage and pay it off before the card gets paid off.

[lookingforward]

That's a real eye opener isn't it?

[forgotten]

But did it ever take more than 30 seconds with a calculator to realize that?
You could always quickly see your interest posted that month was $100 and your payment was $110. As you can see, your balance was only going down by $10 each payment you made.

[nickifan]

But did it ever take more than 30 seconds with a calculator to realize that?
You could always quickly see your interest posted that month was $100 and your payment was $110. As you can see, your balance was only going down by $10 each payment you made.

Well, I always did notice the amount of the interest charge vs. the payment I made and how little that "dented" the principal, but no, I would never have guessed the YEARS it took to pay off a balance. But not being great with a calculator might be one reason I'm in this forum .

One of the cards I will discharge was closed TEN YEARS ago...I believe it had less than a $2500 balance and I still owe $1195! The CC has not called me, but after I missed a payment they did send a "settlement offer" of $600!

[kornellred]

By the time debtors with large amounts of unsecured debt decide to file for bankruptcy protection, the chances are good that they have paid back more than their creditors ever gave to them.

Credit card companies are NOT losing money because of bankruptcies. Their profit margins are thinning a bit, making it more difficult for them to plan for the future - but they will make adjustments - you can count on that.

Unsecured credit is available only because of high interest rates.

[Flamingo]

By the time debtors with large amounts of unsecured debt decide to file for bankruptcy protection, the chances are good that they have paid back more than their creditors ever gave to them.

Credit card companies are NOT losing money because of bankruptcies. Their profit margins are thinning a bit, making it more difficult for them to plan for the future - but they will make adjustments - you can count on that.

Unsecured credit is available only because of high interest rates.

That is how a bank, as a business, protects itself as all businesses need to make a profit to survive. When one signs credit/loan paperwork/contract, they agree to all the possible increases in fees or rates if they breach the contract by not making payments or being late on payments. I gave never read an article or seen a newsflash on someone applying for a credit card with a gun pointed at their head. Lenders are able to write off losses and budget for losses; however, those that ultimately pay in the long run is the general public or consumer. So when any of us file, we contribute to increasing costs and fees elsewhere. The same goes for other examples such as shoplifting, insurance fraud, employee theft, etc., etc.. While companies take steps to budget for those losses, the costs are passed on to the consumer.

[Flamingo]

Just received my monthly credit card statement. Because of the new laws it says on the bottom: If you make no additional charges on this card and pay only the minimun payment it will take 34 years to pay this card off. (year 2044)
Ok, Let's see, I am now 62 so it will be paid off when I am 96. This means that I could buy a house with a 30 year mortgage and pay it off before the card gets paid off.

Quite an eyeopener isn't it? Most people have no idea how the interest works as to the balance on their credit cards and have no idea how they eventually get into trouble carrying balances, being late or not paying at all. More people have been shocked into reality upon seeing what they actually signed up for right in front of them. Something like that should have been part of the initial credit contract to be viewed before signing and banks were smart to leave someething like that out for obvious reasons. Banks are businesses and businesses are in business to make a profit for the owners, investors and stockholders. Reality sometimes bites hard when it is too late.

[keepinitreal]

Just received my monthly credit card statement. Because of the new laws it says on the bottom: If you make no additional charges on this card and pay only the minimun payment it will take 34 years to pay this card off. (year 2044)
Ok, Let's see, I am now 62 so it will be paid off when I am 96. This means that I could buy a house with a 30 year mortgage and pay it off before the card gets paid off.

If I'm being honest with myself, as long as I have my cards, I will ALWAYS charge up again what little principal I pay off each month. Therefore, even in 34 years, I will be NO closer to paying off MY credit cards than I am today. No more charging (or paying) credit cards for me. I'm getting off this merry-go-round.

[DYLAN150]

Forgotten: You make it sound simple. One must take into account for aveage daily balances, varying daily balances, annual charges, and a whole host of other fee's. Wondering how many people in America could really figure their interest on their credit cards?????? Don't forget promotion, purchases and cash advances fee's.

[Dannmcg357]

Credit cards used for emergency situations and or used to buy things we don't save for always get us in a financial bind. I have done both and paid a heavy toll. I’m 40 now and you can bet I will carry a savings for emergencies. I will also save up for things I want rather than pay 5X or more for the convenience of having it now. Credit for things like Vehicles, Homes, and financing big toys like a boat or rv may be a reality for the blue/white collar worker, but credit cards are nothing short of a plague on the American Society IMO. If I were king for one day, I would abolish them. Oh and using complicated math to take advantage of the less educated or math savvy should be a crime also IMO.

[flyinbroke]

I did the math on most of my old cards that have since been opted out of, and I have more than paid back what I borrowed with interest. This is why I really have no real heartbreak with filing BK if I have to. Your monthly statement no way resembles what you owe, it only shows what you owe when it was printed...call a few days later and your balance will have gone up.

Most will not listen to you until you skip a payment or three, but by then you have a hole you won't be able to get out of.

[blessed]

I did the math on most of my old cards that have since been opted out of, and I have more than paid back what I borrowed with interest. This is why I really have no real heartbreak with filing BK if I have to.

Same here.