Chase to raise minimum due to 5% in August

[bambooshed]

It's almost as if they mean for as many people to default as quickly as possible. Do they get more federal bail-out money if they show bigger losses?

This all started with CitiBank who gave me a 0% card in Nov 08 which I used to transfer a balance from a higher rate card. I stupidly signed up for Email statements. I got one statement in Dec. and paid and then didn't get another statement at all (turns out they had changed their online statement policy and I was supposed to go back online a sign up again...) and the next notice was in Feb. that I was 5 days late and so the interest rate was going to be 29.9%. I transferred the balance back to the first card (at a better rate than I had before, who knew?) but that was a Chase Card and now it's 29.9% too.

[kvangild]

This all started with CitiBank who gave me a 0% card in Nov 08 which I used to transfer a balance from a higher rate card. I stupidly signed up for Email statements. I got one statement in Dec. and paid and then didn't get another statement at all (turns out they had changed their online statement policy and I was supposed to go back online a sign up again...) and the next notice was in Feb. that I was 5 days late and so the interest rate was going to be 29.9%. I transferred the balance back to the first card (at a better rate than I had before, who knew?) but that was a Chase Card and now it's 29.9% too.

Wow! Talk about DOUBLE Whammy bamboshed!

[Buzzbolt]

I called Chase when I got the notice to let them know that I could not afford the payment to go up 2.5 times. The rep was completely impotent, but offered to put the account up for review.

I got my response yesterday and they said, in short, 'No.'

Perhaps it would be wise to right the congressmen and senators of our states and point this out to them. I know re-election is over for many of them, but this is a hot button issue and might at least get the dialogue above the working middle class.

[Amy26]

Chase is one of the reasons I ended up having to file... I had called them back in February when I found out that I got laid off from my job overseas. I asked them to help me out with the payments or if I could go on a program because I had unforseen circumstances... I had about 10.5k with a 8.9 fixed rate card. The payments were like 270 or so.

Just because I had called them... they jacked the rate up to 29.9 ... I was current at the time and just asked them for assitance and told them what happened to me... and 1. they refused to help me and 2. jacked the rate up to 30% making the monthly payment over 400 dollars...

Between that and my other issues... I had to file. I don't understand why they think they will get more money by jacking up our rates and making us pay more per month...

Now, instead of getting their over 400 dollars a month income from me, they will get squat. How does that make sense? Do they have insurance or something for writing off bankruptcy debt?

[Buzzbolt]

I would predict that their capacity for loan loss is going up because of a capital crunch. They need a certain amount of money to make the regulators happy, and that is of the utmost importance. CC debt can always be written down (forcefully by the regulators if necessary) and sold, or written off.

I'm going to try to hold out as long as I can, if I can make it 10 months from tomorrow, I won't have alimony payments anymore and could realistically pay everything off without going BK... but 10 months is a long time.

[JRScott]

I hope you can make it BuzzBolt.

This probably is a grab for capital crunch. Sadly given the state of the financial affairs everyone else is likely to follow which will lead to tremendous more default.

[needachance]

This is the reason we have to file. WE cannot make that payment. We tried everything to pull this through on less than half my husbands former income, including me getting a job, selling everything we owned, driving complete beater cars etc. Now, after 7 years of sacrifice and struggling, we are going to have to file. Should have filed 7 years ago.
At least we would have something to show for it now.

[thereshope]

Chase doesn't surprise me. I think credit cards are the next wave after the sub-prime mortgage mess. How can Chase think that is a good decision. If we're barely able to make payments as it is, that would make it harder, it's the same thing when they raise the interest rates. Do they have an incentive for people to default?

[banca rotta]

Chase doesn't surprise me. I think credit cards are the next wave after the sub-prime mortgage mess. How can Chase think that is a good decision. If we're barely able to make payments as it is, that would make it harder, it's the same thing when they raise the interest rates. Do they have an incentive for people to default?

They used to but it doesn't seem to be the case anymore which is why I wonder what they are up to.

The bubble burst or were they asleep? Homes, cars, 401k's pretty much all assets are worth 40% to 50% less from their peak. So much less home equity, less 401k money to borrow from, since so many people have a negative net worth (financially ) Chase will end up with nothing in a bankruptcy.

I guess they know what they are doing because we sure don't.

[mymare]

worried and wondering

So, the banks reduced credit availability to good credit worthy people. That, in turn affects their credit rating. Then they up the interest rates and take away the "emergency" back up for some young families - who "were" paying more than the minimum- on time. This has serious affect on the family budget, that, up to that time was fine. Sure I know that "everyone" should have savings in the event of job lay off, illness etc. but there are some who did not abuse credit, but had no idea that the banks would cause their life to spiral out of control. I have no clue what the banks and politicians are up to except it does make one wonder whether they are getting the extra interest rates from everyone they can, then they will default and go back to the government (us!!!) for more money. This is just me thinking out loud, and being scared. By the way I do believe that a return to saving, less unsecured credit etc is a good idea -but that could have been accomplished by the banks closing accounts to future use and allowing the existing interest rate while the family pays the balance - seems to me. Then again - we can talk til we're blue in the face and still feel like puppets. One more thing - I agree that it is ABSOLUTELY vital to teach our children finance in school.

[Amy26]

I wish I had been taught about finance and how to handle money... I come from a family of terrible spenders (my parents have filed bk 2 times in their lifetimes and they are only 50 years old). So, I was never taught good money management habits or tips/tricks to keep things in order. Hell, I was never even endowed with "save up for what you want and buy it later" ... my dad used to take me on spending sprees while my mom was asleep and take her credit card. He'd be like...don't tell mom we spent all this! Its no excuse now that I'm over 30 and I'm just now realizing how to dig myself out of the financial hole my early years put me in and start doing things right...

Our school systems (public) are really terrible I think. When I got to senior year in high school I was in an advanced english class. The teacher did a quarter on grammar and more than 80% of the class had absolutely no idea the difference between lie and lay .... well and good... he was absolutely disgusted with the lack of grammar that is taught. Same with math and finances... I never had to take any kind of financial class in school ... not even for my bachelor's degree. I think I took an Accounting 101 class but that's not the same thing.

[Catie34]

Thank you Amy for sending me over here> Wow so I'm not alone!
With a job transfer I sold my house but since it's didn't appraisal for what I owe the bank agree to do a short sale> well I had no clue what a short sale was! I even thought OK that fine! AT LEAST IT'S SOLD!
Now this!

My credit score is 750 so I guess it will tank soon!
Oh well I'm done my best!

[banca rotta]

So, the banks reduced credit availability to good credit worthy people. That, in turn affects their credit rating. Then they up the interest rates and take away the "emergency" back up for some young families - who "were" paying more than the minimum- on time. This has serious affect on the family budget, that, up to that time was fine.

I agree with banks reducing available credit and don't care about ones credit rating since most people shouldn't use credit in the first place.

The banks are aware on how thinly stretched most of their customers are and know that even their best customers once they lose their job will borrow the remaining credit and have no way of paying it back.

I just hate the way they are raising interest charges causing more defaults then would otherwise happen if they left it alone.

[AngelinaCatHub]

I wish I had been taught about finance and how to handle money... I come from a family of terrible spenders (my parents have filed bk 2 times in their lifetimes and they are only 50 years old). So, I was never taught good money management habits or tips/tricks to keep things in order. Hell, I was never even endowed with "save up for what you want and buy it later" ... my dad used to take me on spending sprees while my mom was asleep and take her credit card. He'd be like...don't tell mom we spent all this! Its no excuse now that I'm over 30 and I'm just now realizing how to dig myself out of the financial hole my early years put me in and start doing things right...

Our school systems (public) are really terrible I think. When I got to senior year in high school I was in an advanced english class. The teacher did a quarter on grammar and more than 80% of the class had absolutely no idea the difference between lie and lay .... well and good... he was absolutely disgusted with the lack of grammar that is taught. Same with math and finances... I never had to take any kind of financial class in school ... not even for my bachelor's degree. I think I took an Accounting 101 class but that's not the same thing.

How true about our schools. They drug the kids, call it ADD to control. They no longer teach, just babysit.

Home ec was required by my high school for all girls. Driving class was required as well in lieu of phys-ed, once reached 15. You even had to learn what a turn signal was. Imagine that! A not used item here in FL. Home ec taught how to balance a check book. How many here can? We most, but we DON'T, that's why we are here (speaking only for myself).

Values are not taught anymore. In the "old days" (wow I sound like my grandpa did) they used to fix things. Now we just replace things. I think the up and coming depression is about to teach us a harsh lesson. Perhaps a lesson like how to make a family garden, how to read a book instead of the drivel on TV, how to go to bed early, how to take care of the things you own as you cannot afford to replace them, how to shop frugal like at good will, how to talk to your children and vise-verse, how to finish your plate as food is expensive (as it will become with 'cap and trade'), and perhaps, how to thank our Maker for what we have and not regret not having what we 'want'. Only my opinion. 'Hub

[Flamingo]

This is the reason we have to file. WE cannot make that payment. We tried everything to pull this through on less than half my husbands former income, including me getting a job, selling everything we owned, driving complete beater cars etc. Now, after 7 years of sacrifice and struggling, we are going to have to file. Should have filed 7 years ago.
At least we would have something to show for it now.

You sound like me several years ago...you will find out that the reason you had to file is not the amount of the payments of the cards going up, it's because you had a ton of debt that you could afford at the time and then the job loss hit and you couldn't pay the bills anymore and possibly started robbing Peter to pay Paul and living on those credit cards. In plain words, as us, you bit off more than you could chew (i.e., lived beyond your means), as most folks have done. Takes a while to admit it but if you didn't have the debt piled up when the job loss hit you would not have had to file. Debt causes bankruptcy. We too waited for almost a year after a major job loss (lost over 70% of our household income) and just got further in debt trying not to file and it appears you have done the same. I look back at the time prior to filing and wonder why we needed all that stuff (hobby related) and how our lives have changed after filing BK without all those debt worries.

I totally understand what you have gone through to get where you are now. Best of luck to you and I hope you find yourself in the same place we are now several years down the road also. Learn from this and keep the lifestyle changed to prevent you from getting back into the same place you were prior to the income loss.