Credit card interest rates increasing all around
Credit card interest rates are increasing and once again the middle class and lower classes are getting squeezed. In response to the February 22 2010 federal mandate to regulate certain aspects of the credit card industry, many credit card lenders and banks have decided to increase the interest rate to 20% or 30%, depending on your balance. However, even if you pay on time and have a low balance, you are most likely going to see an increase in the credit card’s interest rate.
Bank of America had previously raised rates earlier this year (in my opinion to avoid being accused of hiking them up at the last minute), however Chase is much more blatant.
Jacking up the credit card interest rate stifles the economy even more, and totally adds to the Death of the American Dream in this new economy. Considering the fact that we as taxpayers bailed out the banks, finding your new interest rate to be 25% is sickening.
The lower and middle classes have been forced to live on credit cards since the housing bubble (although most of the people I know have always been living on credit cards). I understand that we as a nation got addicted to it, but for many families having a credit card is absolutely necessary. For the credit card companies and banks to continue to increase interest rates after the so-called bailouts is repulsive.
Those of you who lived in President Carter’s era have already been through this: where the interest rate on a mortgage was 25%. Things just keep sinking lower and lower now under President Obama’s Figurehead Presidency*. The “secret” has been out for some time, but now more and more citizens will be realizing this. The Bureaucracy has run amok.
Just the stats from people I know in real life:
- If you have a balance of $10,000, expect a bank to cut your credit limit until you start making big chunk payments in addition to an increased interest rate.
- If you are around $5,000 in debt, expect 20% or higher.
- Don’t miss any payments right now.
- If your bank increases the interest rate to 30%, opt out and try to pay it off at the old interest rate, or get it consolidated, or transfer balances to a new card, or whatever.
* There is no Obama Conspiracy. He’s just in over his head.
In the meantime, you can try and make money online to help with those payments.
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