New Fed Law on Credit Card Payments?

BattleRifleG3 · 11-10-2005, 01:26 PM

I've received automated phone calls and had others explain that there's a new fed law that will raise monthly credit card payments in order to reduce individual debt by making sure they are paid off faster.

Is that really the case? So many times I've heard folks say "Oh, they're gonna do this..." when the law is only being discussed and there hasn't been a vote.

Just wondering what the reality is on this if anyone really knows. It would seem to me that raising credit card payments forcible would raise interest rates, because if people are forced to pay off balances sooner, the companies would have to raise their interest rates in order to make as much money. Then we'd be paying all that much interest even if we did pay off all our credit cards faster. Or would the habits of those with high credit card balances who have a hard enough time paying their monthly payments result in paying large payments and then recharging similar amounts so that their balances remain the same and thus their interest and interest rates in general?

I dunno, I'm all about getting out of debt, but the federal government doing it forcibly at the expense of creditors and thus interest rates really doesn't seem right.

gunssb · 11-10-2005, 01:30 PM

I'm not sure how true it is, but if it is, I don't like government intervention into personal/private things...that includes your money. How you handle your finances is your problem, not the governments.

lefty o · 11-10-2005, 01:38 PM

it aint your money if its borrowed from credit.

jerry · 11-10-2005, 01:43 PM

Bankruptcy laws are new as of last month, but I'm not sure to what extent????

Dallas · 11-10-2005, 02:37 PM

The new law takes effect on Jan 1, 2006. It raises the minimum monthly payment you can make. The amount depends on how much you owe.

Stopper · 11-10-2005, 02:59 PM

leave it to the gummit-up to get thier pesky fingers in yer beezwax. Always finding new ways to protect thier corporate buddies and suck more life out of us.

BattleRifleG3 · 11-10-2005, 03:24 PM

I was told that they would double, but does the fed law prescribe simply that existing payments would double, or do the prescribe a new formula for payments related to the balance?

Dallas · 11-10-2005, 04:00 PM

My understanding is that it is being raised by a percentage not a flat double the rate. Of course if it gets raised 80% they have de facto almost doubled the monthly payment. Unfortunately I don't think there will be a flat percentage raise. It will depend on how much you owe at any given time. I got stuck with the Credit Card charges when I divorced. They aren't gone yet but almost, as my balance lessened over time the minimum payment I had to make lessened also. My monthly minimums are currently so low that even if they double I can afford it. I hope to be debt free by late 2006.

Rave · 11-10-2005, 09:12 PM

I am still letting this one rest,the truth will be apparent in good time.

BattleRifleG3 · 11-10-2005, 10:12 PM

Anyone know what those numbers will be, ie if anyone actually knows them?

SPOCAHP ANAR · 11-11-2005, 07:04 AM

If the government really cared about people and debt they would do something to educate the people better and outlaw all the shaky loans and contracts out there. No They decide to raise your payments.

I have but one CC left and when that one is paid off thats it. I am a cash only business.

Oxford · 11-11-2005, 11:10 AM

No matter what percentage is charged for credit...if you pay off your credit cards within one month you won't need to worry about the percentage that is charged to borrow money.

Rufus Rhastus J · 11-12-2005, 09:16 AM

Yes, heard it on the news...it is going to happen.

chester12 · 11-12-2005, 09:21 AM

Wow that is going to suck. I know that it was our problem, but we are working on getting them down, and can't really afford to have all our payments go up. I guess if that happens we just won't eat for while.

ducktapehero · 11-12-2005, 03:45 PM

No credit cards for me.

11-10-2005, 01:26 PM	#1
BattleRifleG3 Super Moderator Join Date: Mar 2002 Location: Western PA Posts: 11,454 Images: 13	New Fed Law on Credit Card Payments? I've received automated phone calls and had others explain that there's a new fed law that will raise monthly credit card payments in order to reduce individual debt by making sure they are paid off faster. Is that really the case? So many times I've heard folks say "Oh, they're gonna do this..." when the law is only being discussed and there hasn't been a vote. Just wondering what the reality is on this if anyone really knows. It would seem to me that raising credit card payments forcible would raise interest rates, because if people are forced to pay off balances sooner, the companies would have to raise their interest rates in order to make as much money. Then we'd be paying all that much interest even if we did pay off all our credit cards faster. Or would the habits of those with high credit card balances who have a hard enough time paying their monthly payments result in paying large payments and then recharging similar amounts so that their balances remain the same and thus their interest and interest rates in general? I dunno, I'm all about getting out of debt, but the federal government doing it forcibly at the expense of creditors and thus interest rates really doesn't seem right. __________________ Trust is earned, not... GIVEN away. - Worf

11-10-2005, 01:43 PM	#4
jerry Senior Member Join Date: Mar 2002 Posts: 11,199 Images: 9 Blog Entries: 1	Bankruptcy laws are new as of last month, but I'm not sure to what extent???? __________________ Joe the plumber is screwed

11-10-2005, 02:59 PM	#6
Stopper Senior Member Join Date: Mar 2002 Location: Kansass Posts: 2,212 Images: 1	leave it to the gummit-up to get thier pesky fingers in yer beezwax. Always finding new ways to protect thier corporate buddies and suck more life out of us. __________________ They should have stopped at "Congress shall make no law"

11-10-2005, 03:24 PM	#7
BattleRifleG3 Super Moderator Join Date: Mar 2002 Location: Western PA Posts: 11,454 Images: 13	I was told that they would double, but does the fed law prescribe simply that existing payments would double, or do the prescribe a new formula for payments related to the balance? __________________ Trust is earned, not... GIVEN away. - Worf

11-10-2005, 09:12 PM	#9
Rave Senior Member Join Date: Mar 2002 Location: Tampa Posts: 7,050	I am still letting this one rest,the truth will be apparent in good time. __________________ USAF '62-'66 .

11-10-2005, 01:30 PM	#2
gunssb Senior Member Join Date: Jan 2005 Location: socal Posts: 1,833	I'm not sure how true it is, but if it is, I don't like government intervention into personal/private things...that includes your money. How you handle your finances is your problem, not the governments.

11-10-2005, 01:38 PM	#3
lefty o Senior Member Join Date: Mar 2002 Location: mn Posts: 5,103	it aint your money if its borrowed from credit.

11-10-2005, 02:37 PM	#5
Dallas PUKHA DAWG Join Date: Mar 2002 Location: Virginia, just outside of Washington D.C. Posts: 3,609	The new law takes effect on Jan 1, 2006. It raises the minimum monthly payment you can make. The amount depends on how much you owe.

11-10-2005, 04:00 PM	#8
Dallas PUKHA DAWG Join Date: Mar 2002 Location: Virginia, just outside of Washington D.C. Posts: 3,609	My understanding is that it is being raised by a percentage not a flat double the rate. Of course if it gets raised 80% they have de facto almost doubled the monthly payment. Unfortunately I don't think there will be a flat percentage raise. It will depend on how much you owe at any given time. I got stuck with the Credit Card charges when I divorced. They aren't gone yet but almost, as my balance lessened over time the minimum payment I had to make lessened also. My monthly minimums are currently so low that even if they double I can afford it. I hope to be debt free by late 2006.

11-10-2005, 10:12 PM	#10
BattleRifleG3 Super Moderator Join Date: Mar 2002 Location: Western PA Posts: 11,454 Images: 13	Anyone know what those numbers will be, ie if anyone actually knows them? __________________ Trust is earned, not... GIVEN away. - Worf

11-11-2005, 07:04 AM	#11
SPOCAHP ANAR Senior Member Join Date: Mar 2002 Location: SC-upstate Posts: 4,192 Images: 1 Blog Entries: 6	If the government really cared about people and debt they would do something to educate the people better and outlaw all the shaky loans and contracts out there. No They decide to raise your payments. I have but one CC left and when that one is paid off thats it. I am a cash only business. __________________ Spocrest Out!..........

11-11-2005, 11:10 AM	#12
Oxford Super Moderator Join Date: Mar 2002 Location: Gladstone, Missouri Posts: 13,101 Blog Entries: 4	No matter what percentage is charged for credit...if you pay off your credit cards within one month you won't need to worry about the percentage that is charged to borrow money. __________________ "If it's worth doing, it's worth doing right".

11-12-2005, 09:16 AM	#13
Rufus Rhastus J Senior Member Join Date: Apr 2003 Location: West, Central Florida, Third World America Posts: 6,339 Images: 1	Yes, heard it on the news...it is going to happen. __________________ "They cannot be trusted.....The Romulans (our politicos) are without honor." Worf

11-12-2005, 09:21 AM	#14
chester12 Member Join Date: Mar 2005 Posts: 49	Wow that is going to suck. I know that it was our problem, but we are working on getting them down, and can't really afford to have all our payments go up. I guess if that happens we just won't eat for while.

11-12-2005, 03:45 PM	#15
ducktapehero Senior Member Join Date: Aug 2004 Location: Southern Missouri Posts: 319	No credit cards for me. __________________ Is it Duck or Duct Tape? http://www.octanecreative.com/ducttape/duckvsduct.html "Me fail English? That's unpossible!!"----Ralph Wiggum