Well, it happened. My friend's credit card bill doubled.

[mattclearing]

MBNA is apparently implementing the 2% balance payment increase Congress allowed.

She had a large balance and a bad interest rate, so her payment went from $320ish to $640.

I had told her it was coming down the pike, and she emailed me to let me know that indeed, it had happened.

Welcome to indentured servitude, 21st Century style.

[brmdp3123]

1. I shudder to think what her balance must be.

She should tear the card up.

[mattclearing]

5. She is planning to pay it off in a lump sum after a home sale.

So it's not the worst thing in the world. But I feel terrible for people in more precarious situations.

[SpiralHawk]

21. As long as the housing market don't punk out

as it seems to be...sputtering...under the failed imperial reign of the BushCo Republicans and their Culture of Corruption.

[mattclearing]

29. What happened to the ownership society??? n/t

[derby378]

31. That's easy - we got OWNED

Or, in l33t-speak: "Crapx00r! We got pwn3ed!!!"

[mattclearing]

32. Nice. n/t

[stevietheman]

41. I have a saying about that...

In Bush's "ownership society," it's not about what you own, but who owns you.

[converted_democrat]

53. Mind if I use it for my next LTTE??

Pretty please with sugar on top!

[stevietheman]

59. Please do use it... all my sayings are public domain. :)

And please do post your LTTE here once you've sent it off... I would love to read it.

Cheers!

[converted_democrat]

63. Thank you.....I will post it before I send it out....n/t

[MarsThe Cat]

44. she should take out a home equity loan and pay it off.

it's all the rage.

[meganmonkey]

48. mistermonkey is dealing with the same thing

He built his house himself and most of it is in the mortgage loan, but some of it is on credit cards (deck materials, replacement window, some paint and stuff). Unfortunately we are having NO luck selling the house so we are just biding our time as long as we need to so he can get a decent price for it. Meanwhile he has a pretty good amount of CC debt to deal with.

I guess it is good that I moved in with him last year since I am helping pay for the mortgage. Otherwise he would be skee-rewed!

I know what you mean, though - there are a lot of people who might get really fuckt on this deal. People who have big-screen plasma TVs don't have my sympathy, but those with medical bills or other tragedies on their credit cards, I definitely do have sympathy for.

:(

[Lorien]

51. The latter makes up about 60% of all of those with credit card debt

medical costs are the #1 contributor to CC debt. They've put me nearly $20,000 in debt( but I used a home equity loan, not a credit card, to pay what my insurance company refuses to pay).

[meganmonkey]

61. I'm so sorry to hear that

We call ourselves a civilized nation, yet we don't provide health care to our people. It is appalling how many calls I get from elderly people who can't afford food because their prescription costs went up or something (I work at a food bank)...

NO ONE, young or elderly or anything in between, should have to struggle to eat or heat their homes because of medical issues.

I am inspired (for the first time) to use the new Dem catch-phrase - America can do better!

[tk2kewl]

2. sounds like it's time fora consolidation loan

and time to take a pair of scissors to the card(s)

[MadHound]

3. Tell her to pay off her CC ASAP, and then cut it up.

Go to a cash/check only basis, and starve this damn beast. That is the only thing that will get the message across to these bastards.

[mattclearing]

7. It's happening.

She had a long period where she couldn't make ends meet, and ran up a lovely debt. Thankfully she's in a position to pay it off quickly.

[imouttahere]

11. I agree with the Chiefs fan...

and add that we need to starve ALL the beasts...massive boycotts/buycotts are the only power we have left. Change the economic landscape, and you can change policy.

[Vinnie From Indy]

27. Amen!

Quit using credit cards if you can. The credit companies have waited and schemed for over a decade to get to this point. Now that the new bankruptcy bill is law, they are going to rape and pillage. They will use the tobacco model of getting young people so far in debt that they will in effect be slaves.

[Laelth]

4. Indentured servitude, indeed.

It's worse. As an endentured servant you were provided with food, shelter, and health care. Of course, indentured servants didn't get the best of any of these services, but they were provided.

:mad:

-Laelth

[FloridaPat]

6. Just think of all the people who were thinking about going bankrupt

but felt they could still handle things. That's insane. Where is our government protection against these kinds of things? Oh, yeah, out protecting the banks.

[mattclearing]

10. I think there will be consumer backlash.

The news never told anyone this was coming. People who were just paying interest are going to be pissed when they find out their reps in Congress sold them out on this.

[Gormy Cuss]

37. Would that it be so.

I've given up on consumers and credit. Too many people have accepted shortened grace periods, enormous late penalties even when the payment is less than 24 hours "late," interest applied to current purchases if there are any outstanding debts from previous months, interest rates changed based on payment histories with other creditors even when you have maintained your account in good standing, etc.

The best consumer backlash is to stop using credit cards and paying down existing debt. Once revenues fall the credit card vendors will need to reassess their greedy business practices. One large vendor (Citibank, maybe) is advertising a new practice for good customers: no late penalty if you've make a least one purchase per month.I don't know what the other stipulations are but it's clear their research shows late penalties are a hot button with consumers.

[stevietheman]

43. Nope... just more charge-offs and bankruptcies to come. n/t

n/t

[newspeak]

46. yeah, consumer backlash

will be that more people will concentrate on paying off their credit cards and do away with them. The credit card companies are cutting their own throats..Because that's what we're going to do. Pay off our credit card and do a small (1,000) credit union credit card, that gives us back some of our interest money at the end of the year. If more consumers do that, then the companies will be complaining about not have enough business or receiving enough interest.

[SmokingJacket]

8. That is just so wrong.

She signed up for a certain rate when she got the card. But it's legal to screw people over this way.

What's next, debtors prison? You can't squeeze blood from a stone.

[mattclearing]

14. Oh, and her rate tripled recently when she was a day late on a payment.

We cheered when the CEO of MBNA's helicopter crashed into the East River recently. Unfortunately, he survived. Fucker. :D

[afdip]

9. time for your friend to embrace the concept of fiscal responsibility

. . . quit acting like a republican

[mattclearing]

19. Funny.

We both know she shouldn't have taken the money, but they sucker people in with low-interest rates and spare cash. There's a great deal of allure in that.

I think credit card companies could deal with some accountability in advertising too.

But yeah, she's aware of what she's done and knows how to pay it back, which is more than you can say for the Republicans.

[afdip]

12. time for her to embrace fiscal responsibility and quit

acting like a republican

[President Jesus]

13. Was she forced to live beyond her means?

Sorry, having a hard time sympathizing.

[mattclearing]

16. Sympathy isn't really the aim here.

Don't feel bad for her, as she's going to be able to pay it back...she was mainly putting it off.

Feel bad for the people who are in the same boat but can't afford the payments.

[converted_democrat]

38. People are forced constantly to use their cards to buy groceries, and

other necessities. My hubby and I were both fired shortly after 9-11, because nobody was buying the big ticket items we were selling. We lived for 18 months on credit. We had no choice. Either use the card, or go hungry and without shelter for our then newborn. What would you have suggested?? We were really living beyond our means, I mean what were we thinking buying food. :sarcasm:
Luckily my husband is a business whiz, and we now own our own business, that is doing quite nicely. We paid off the cards, and are completely debt free. Most people can't just go out and start there own business from the ground up, I'm lucky to have such a smart hubby.
People are often forced to use cards just to survive day to day life in this country. I'm not saying all credit card debt is essential, but there is a good deal out there that is. In our small community, I have never seen so many people living in their cars, ever. All I can ever remember is two "homeless" people the whole time I have lived here. Now we have a park with between 25- 30 cars in it on any given night, all people now living in their cars. Our churches food pantry is serving 3X's as many people as it was this time last year, and my fellow church members can barely keep up with the demand.

[anarch]

39. thank you for posting this.

It seems it's real easy for people who have never been deprived or desperate to criticize those who get into debt just trying to get by.

Personally, I almost wish I'd just become homeless instead of racking up a bunch of credit card debt. I guess having a fucking roof over my head actually was "beyond my means"...even though I have a job (the significant other got let go during a "cost-cutting" staff reduction at her job, and we also had some medical issues...all "beyond our means" to deal with, I guess.)

It's amazing to what extent usury and predatory lending have been enabled in the recent past.

[shrike]

40. I remember those days

Lost two jobs in a row. Went out on my own, figuring, "Hell, at least I can give myself job security." Went a few months without money coming in and -- you guessed it -- lived off credit cards. Was fortunate enough to have some small investments I could cash in, and use to pay rent. Almost had my phone shut off a few times -- bad, bad thing for a self-employed person. Scrimped as much as I could. Remember going through the sofa cushions and the car, so I could buy some rice. Tried to figure out if I had anything off value that I could pawn -- three pawn shops in town. Fortunately, or unfortunately, I didn't.

Ran up thousands of dollars worth of debt immediately. Managed to pay it all off in one year, thankfully. We had a Clinton economy back then, and I had more work than I could shake a stick at.

[Ladyhawk]

64. What about folks like me who are on disability and can't make ends meet?

I had a hard time adjusting my standard of living down from middle-class / upper-middle-class to lower class. Now I have just enough to maybe buy the groceries I need each month. Occasionally, I'll get a few dollars ahead if I'm careful.

At one point, I was not making ends meet on $812 a month and ran up the credit. Some of my credit was spent helping friends to keep ahead of bills. Some of it was ill-spent because I wasn't used to being lower class and hadn't learned to live within my means. Some of it was spent for outright necessities. Regardless, my debt got way out of hand: $3000. That's a freakin' fortune if you survive on disability.

Regardless of how folks got into debt, it's unfair for the credit companies to suddenly raise the payback rate. It may sink some people. Luckily, I got out of debt just in time and I've learned my lesson about credit cards. Some people are going to have to learn the hard way. And yes, I DO have sympathy for them, even if they lived beyond their financial means.

I never went on crazy spending sprees. Debt just accrued bit by bit until I was in over my head. Now I know what I did wrong, but others may pay more dearly while learning about that particular mistake.

Look at it: $3000. That may not seem like much to many of you, but to me it was a veritable fortune. To someone on a fixed income, a drop in the bucket can seem like a tsunami.

[TallahasseeGrannie]

15. St. Peter don't you call me

'cuz I can't go. I owe my soul to the company store.

[rucky]

17. Just in time for the new bankrupcy bill to kick in.

what a happy coincidence!

:sarcasm:

[mattclearing]

20. Yeah, I think the American people are in for a wake-up call.

They thought the government was preaching do as I do, but no one's holding their feet to the fire to pay back their debts.

[dmr]

18. I shudder to think about the penalty fees

when people can't meet the increased payment.

I'm happy to hear your friend will be able to pay this off soon; and I'm relieved I paid off all my debt 10 years ago. I worked overtime and a second job to do it, and I remember my friends telling me I was killing myself for nothing, while they were in the spend, spend, spend mode. I don't like things hanging over my head. Reading your post makes me so thankful I don't hold that debt anymore, because today, I wouldn't be able to handle that kind of repayment.

[mattclearing]

24. Yeah, I don't like it hanging over me either.

Credit is something you want to have for in case something happens, not something you want to be continually paying back because you did something you wanted.

She's very lucky to be in a position to take care of it. The people who aren't so lucky are the ones I worry about.

They are going to feel betrayed, but since credit card debt is considered so shameful, I wonder if they will even bother to register their anger.

The bankruptcy bill and this combine to put a great number of Americans in a financial disaster.

Eventually we will all feel the repercussions of this policy as spending drops and companies lay off even more people.

[Divernan]

22. Another GOP Trifecta Miracle! Interest rates,gas prices, heating costs!

What perfect timing for the GOP Congress to push through the new bankruptcy (or lack thereof) legislation. This winter will warm the cockles of the neocons hearts - if they had hearts. I note the Congress just defeated legislation to increase $$$ for the home heating subsidies - most of which would have gone to elderly people on fixed incomes.

Let the indentured servitude begin!

[SpiralHawk]

33. MAJOR MEME: Republican Tri-fuckta of booming gas, interest and heating

costs. The Oil Repubs are raking in the Big Bucks, and sucking the average American dry.

You got it Diverman. Kudos. You should start a seperate Republican TRI-FUCKTA thread (although it might be prudent to use Trifecta rather than the occult Republican description of what they hath wrought: Tri-fuckta to America.

GOP Trifecta is SOOOO true it packs a whallop. To the belly and the wallet.

[NashVegas]

65. ... and Hand it Off to the Dems

I don't know, maybe that was the plan all along, thinking to fuck over the place, then let a Dem in to clean up the uncleanable mess.

Whomever the Dems run in 2008 needs an amazing plan. It can't be an "anyone but (insert inept, corrupt greedy Republican here)" candidate. Not again, not ever.

[losdiablosgato]

23. A suggestion to get by

Use the card to make purchases you have to make anyway. Gas, food, utliliies. Then write a check to the credit card for these purchases. You are making you minimum, but you not are having to dig any deeper in you pockets. Then try to get this monkey off your back.

[mattclearing]

26. It might have to be that way in the short term.

I fear that is exactly what MBNA wants, though...to perpetuate the debt in people who can only afford the interest.

People should be responsible for their debts, but predatory lending isn't exactly noble, either.

[losdiablosgato]

30. Pay as much as you can when you can.

That is what my wife and I did and we now only use credit card for the airline points and pay them off every month.

[calmblueocean]

34. Smart idea.

Wish I had thought of that when I was in CC debt.

[shenmue]

25. Nasty...

Got to love corporate America, eh?

:sarcasm:

I am so glad I stopped using my credit card last year. It was the only thing that enabled me to start paying it off.

I can't believe these mercenary bastards. Repulsive.

There should be a special circle of hell for vindictive corporations. They are squeezing people at a time when the economy is already incredibly bad. Many families cannot practicably get by without some reliance on credit for basic expenses, from rent to food to things for their kids and so on. Salaries are not keeping up with the cost of living, and this is what happens. Most bankruptcies do not come from leisurely spending, they come from inability to keep up with exorbitant medical bills and similar necessary expenses.

This is something that will carry the middle and working class even further down ****'s creek than they already are.

Malcolm X, in his autobiography, said that his father told him, credit cards are like slavery.

He was right.

[mattclearing]

28. Dead on with your Malcolm quote.

Sad, but this is what America is turning into.

When the cost of living is untenable, eventually everyone will be indebted.

Pay no mind to the shackles, people.

[warrens]

35. Use debit cards

Credit cards are a scam. Their raison d'etre disappeared with the introduction of the debit card. And they're bummed they ever invented the thing. Stores will let you buy big purchases on time, and everyone else will take a debit card, even car rental companies.

For those who travel on business a lot, here is what I do. I use the corporate Amex to prepay all hotel bills, use cabs to get around, and use a debit card for meals and so on. I used to be the editor of a credit card publication, and the profit margin on those things is obscene. If you're rich, they'll give you one for free. If you're not rich, they'll soak you for every penny they can.

[mattclearing]

36. Yeah, it's amazing how quickly people become addicted to easy cash.

I am curious to see if people will be publicly outraged about this when their payments double.

We knew it was coming, but most won't be so lucky.

A great example of DU'ers seeing into the future.

[Catherine Vincent]

42. I remember when grocery stores first started accepting credit cards

for payment of groceries and everyone thought it was ridiculous. Now it's no big deal.

[mattclearing]

45. Yeah...people have been conditioned to spend money they don't have

on things they absolutely need. It's economic slavery.

[newspeak]

47. well I was against ATMs when they first came out

I remember "use our new system" free. Next thing you know, they're doing massive lay-offs of bank clerks and managers, then they started charging a fee. What happens to some people, like my son, you start using your card at the store, at restaurants, etc....and not properly keep track of the amount used. Next thing you know the banks are charging additionally fees for being overdrawn. And, I wonder how many people do that now!!!! I am tired of big companies wanting our money, but doing away with real customer service. They started the self-check out at the grocery store and I told them I refuse to use it. You're taking away people's jobs and basically saying the customer can do the work. It's bad enough I have to pay higher prices for food, but now you want me to check out my own groceries. The bigwigs make more money while the workers and customers are screwed!!!!

[mattclearing]

54. Can't fight technology.

People aren't entitled to jobs that machines can do better.

[newspeak]

60. another words---

it's okay for the rich cronies to make as much profit off of us without customer service. We should just give them our money without them providing any service, because that's about what they want. And with some technology, people and communities suffer. I'd rather be a "luddite" than watch people and communities lose......PEOPLE BEFORE PROFITS!!!!!!!!!!

[mattclearing]

62. I sympathize, but ultimately people need to find jobs that can't be

replaced.

[converted_democrat]

57. Have you noticed that the majority of fast food joints accept plastic too?

The first time I read the signs in the burger joints, I began to realize just how much trouble out country is in.

[notadmblnd]

49. so which one of bushes corporate buddies will get the first no bid

contract, to build a debtors prison?

[SammyWinstonJack]

58. Halliburton, of course. nt

[RumpusCat]

50. my credit card is nearly maxed out

It's small, tho', just $1500 that I racked up being unemployed after college for awhile. Luckily I can now afford to pay more than the minimum, even after the new payment hikes, so I'm working on getting it back down... my roommate keeps encouraging me to ask them to extend my line of credit (could easily, my credit history is solid) so I can do more 'fun' shopping but I'm refusing! It's frightening how temping and easy it would be, tho'.

However, I got a thrifty gene from my dad and take great pleasure in cost-cutting, so I will win out! :D

[mattclearing]

55. Totally. You do win out.

It is tempting, especially when you have great credit.

[ozarkvet]

52. Congress didn't "allow" it

They required it.

Previously, they could set it at whatever the parties chose.

It sucks now, but it helps people get out of debt.

Credit cards are evil. This is good medicine that taste bad.

[mattclearing]

56. Too bad they won't do it to themselves.

As soon as Congress passes a balanced budget amendment, I will be totally cool with this law.

As it stands, the government is being hypocritical.

[ozarkvet]

67. Don't disagree at all

I hate pretty much all our Congress, Democrats included. They all suck.

This measure will eventually get people out from under the thumb of credit card debt.

[Kazak]

66. Mine doubled too...

Went from $0.00 to $0.00...

Pay 'em off!!!

[Javaman]

68. Whew! I just paid off my MBNA account last month!

I have 900 clams left on my one and only card. Then I will be zero worth. :) for the first time in years. No more debt for me.

[neebob]

69. Citigroup doubled my payments in June

on an old Sears card of mine that's still over the limit from my death-sponge episode (i.e., when the Giant Sponge of Death attached itself to me) of 1998-2000. I hadn't been opening my paper statements because I'd set up a whole slew of automatic payments the year before, on their promise to review the account at the end of the arrangement.

Note to self: Always look at paper statements.

In August, I got a collection call on a $197 past-due amount, and the guy tried to feed me this B.S. line about how it wasn't their doing and the government "stepped in to help people pay off their bills." Oh, and suddenly they didn't have any programs available to reduce my balance.

I gave that guy an earful about predatory business practices and B.S. I've paid more than I ever owed on that card in the last five years, and the interest rate is now 26.99 percent.

I ended up going to Consumer Credit Counseling Service, now Money Management International, and setting up a program on the Sears card and another card that's in a similar place. Did you know you can do that with just one or two cards? Yes, you can, and the procedure is relatively painless, although it now costs $75 to enroll. Got the total payments down quite a bit, and they'll both be paid off in five years.