Thursday, July 21, 2005

Raising Minimum Payments on Credit Cards

Mellody Hobson of ABC reports that increased monthly payments have already begun on Bank of America with Citigroup, Discover and MBNA soon to follow. Ms. Hobson believes, and I agree, that this increase may in many cases be a GOOD thing by both speeding up repayment (thus reducing interest charges) and by taking away a false sense of security regarding ability to handle debt. Ms. Hobson, as usual, also has other good pointers, such as reading terms of credit card use carefully, paying off credit card debt with the highest interest rate first and limiting the number of credit cards held.


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