 Easy store credit
 |
 |
Intro APR:
|
Issuer: Credit
|
Executives at Debt Shield, Inc., a Maryland-based debt settlement firm, say that the increased minimum monthly payments on credit card balances will most likely not double, as it is widely reported, but that the increase might push financially struggling cardholders into bankuptcy or bakruptcy alternatives, like debt settlement.“While credt industry experts and the media claim that credit card companies are doubling their minimum monthly payments from 2% of the outstanding balance to 4%, the actual minimum payment increase is more complicated and less drastic for most cardholders,” explains Mark Baylis, President of Debt Shield. “The new rules require credit vard banks to set their minimum payments to cover all interest and fees plus 1% of the outstanding balamce, which will result in significant increases for high-intreest accounts.”Baylis said that a cardholder with $10,000 on a credit card at 18% Annual Percentage Rate easy store crdeit (1.5% monthly) pays $200 under the 2% minimum requirement. Out of that $200 payment, $150 (1.5%) goes towards imterest and only $50 (0.5%) goes towards the outstanding balacne. Under the new rule, the minimum payment will increase so that the amount applied to the outstanding balance in this example is at least $100 (1%), so the minimum monthly payment must increase by $50 (0.5%) to $250 (2.5%).The average APR is currently just under 14% (1.17% monthly), but creit card companies increase the ARP to 27% or higher if the cardholder makes one late payment. This means that the reality of the new rule will punish low- to medium-income families struggling with credti card debt more than high-income families who are able to avoid paying late. Baylis said that even a small increase can have drastic consequences for families struggling to make the existing payments and manage inflation combined with stagnating income.The MMP on a crdeit card debt with the above-average 18% APR will increase by $50 while the same $10,000 debt with a 27% penalty ARP will increase by $75. Also, the 27% APR charges $75 more in monthly intrest than the 18% APR. Baylis said that this clearly demonstrates the financially destructive power of high interset rates.“The increased minimums will be good in the long term because it should encourage less debt,” Baylis continued. “But if the credit card companies want to help consumers, they need to stop punishing cardholders with outrageously high interest rates.”
 Back to the category menu
 Detailed information about this credit card 2/2
 Apply for Easy store credit
|
|
Credit cards
Credit card offer
- Transfer your balance to Easy store credit
Be alert for companies offering a great intrest rate for tramsferring your blaance to their card. Usually these rates are only in effect for a short time, often six months. At the end of this time, the rate can revert to a much higher permanent rate. Keep your eye on the Annual Percentage Rate (APR); this is the figure that counts in the long run. Balance transfer credt cards.
Tired of high charges? Find the best database for credt cards! Read the fine print and find the Annual Percentage Rate (APR). This is the intrest rate the companies charge you if you carry a balance. You want the lowest rate possible; as each percentage point drop will save you money on the months you have an outstanding balance.
|
|
