Comments on: Credit Card Companies Are Raising Your APR – Here’s Why & What You Can Do

By: FICO Score Credit Card - The Way I See It | Debt Free Adventure!

FICO Score Credit Card - The Way I See It | Debt Free Adventure! — Fri, 23 Oct 2009 10:02:19 +0000

[...] Credit Card Companies Are Raising Your APR – Here’s Why & What You Can Do [...]

By: Credit Card Rewards - Are You Really Making Money? | Debt Free Adventure!

Credit Card Rewards - Are You Really Making Money? | Debt Free Adventure! — Thu, 15 Oct 2009 23:55:39 +0000

[...] increasing interest rates “because of a bad economy” [...]

By: Matt Jabs

Matt Jabs — Sat, 01 Aug 2009 06:07:32 +0000

That was the route we were taking before just recently deciding to get a consolidation loan through Lending Club that covered our remaining credit card debt, and our one remaining auto loan.Look for a post coming out early next week that details our experience (hint: it has been a VERY positive experience so far)!

By: Kreestee

Kreestee — Fri, 31 Jul 2009 15:21:48 +0000

The same thing happened to us! From 6.9% to over 14%. We’re trying the same thing – decline the option – and ours runs out in April of 2010. We’re going to try to pay down the balance as much as possible in that time, but I wonder what they’re going to do to try to retain our business. This card is the first one I got suckered with in college.
.-= Kreestee´s last blog ..Cutting Ties =-.

By: Matt Jabs

Matt Jabs — Sat, 23 May 2009 23:45:03 +0000

Good points Ben!

I hold pretty much the same views. I use Mint for everything, and as soon as I get my credit cards paid down (in about 4-5 months) if I use them, I too will pay them off at the end of each month.

Cash is easy to blow, but I believe if we have a disciplined approach to it, just as we do our checking accounts…it can be controlled just as well.

By: Ben D.

Ben D. — Sat, 23 May 2009 23:05:32 +0000

I agree with @nickel about cash vs. credit cards. For me, it comes down to using Mint.com for personal finance. All of my spending accounts — checking account, credit cards, even paypal — show up in one place in Mint, so it really doesn’t make any difference to me whether I’m using my debit card or my credit card for a particular purchase. It’s all tracked the same way.

And it’s precisely *because* I pay my balances off every month that I don’t ever trick myself into thinking that credit-card spending is not “real” spending. I know it’s coming out of my checking account within the next 30 days.

Loose cash, on the other hand… look out. It’s already out of my checking account, and Mint doesn’t track cash — so, guess what, neither do I! Or at least not very well.

By: Matt Jabs

Matt Jabs — Thu, 21 May 2009 17:28:56 +0000

Hey JT, thanks for stopping by.It's funny that you mention "consumers have to take responsibility for their spending habits". Check out this Personal Responsibility post I wrote on FiveCentNickel.com that addresses that very fact!

By: JT

JT — Thu, 21 May 2009 17:12:58 +0000

There's a reason why Proverbs says the borrower is servant to the lender. They basically do what they want. It's good to see some legislation coming down the pike to help consumers, but at some point consumers have to take responsibility for their spending habits.Let's wipe out that debt!!JTJT’s last blog post..Practical Guide: 6 Steps to Paying Off Your Credit Cards

By: Matt Jabs

Matt Jabs — Thu, 21 May 2009 02:18:57 +0000

Yeah, those numbers would be totally different based on personal spending habits and history. I suppose it could be true in averages…

If you have wads of cash burning holes in your pockets, I could use some help w/this Capital One balance!

By: Matt Jabs

Matt Jabs — Thu, 21 May 2009 02:07:58 +0000

I’m with you on that Mike, my plan is to have it paid off within the next few months…then never again will I pay Capital One another penny of interest!

By: nickel

nickel — Thu, 21 May 2009 01:43:38 +0000

Matt: That 12-18% is bandied about all the time. Unfortunately, it's surprisingly hard to find actual data to back up that claim. Most people heard it from Dave Ramsey, but I've had a hard time substantiating it. Honestly, I think it's highly variable -- I know that I'm personally more prone to blow a pocketful of cash on little things here or there, mainly because it feels weird to swipe a credit card for a buck or two.nickel’s last blog post..Credit Card Reform: Inside the CARD Act of 2009

By: Matt Jabs

Matt Jabs — Wed, 20 May 2009 06:00:09 +0000

Ahhh…interesting point you raise concerning whether or not people who use credit cards by paying off balances each month still purchase more because of a disconnection to their money.

I’m interested in hearing more about that.

I always thought they offered the rewards as a way to get people to apply, knowing that most people will never utilize the card in order to receive the benefits because they do not use it properly. Instead, the card usually ends up costing most people interest costs.

By: Matt Jabs

Matt Jabs — Wed, 20 May 2009 05:52:08 +0000

This is exactly what happened to me. I would do what you did but Capital One said if I do decline, they will close my account right away and I will no longer be able to use the card.

I do not want to do this because I want the card to stay open for awhile after I pay it off…as to benefit my credit score.

So…I’m just going to pay off the $1,500 left on it over the next 2 months and leave it open w/the higher rate. At that point the rate won’t matter because I do not plan on using the card, and I will still realize the benefit a paid off card gives your credit score.

By: Enemy of Debt

Enemy of Debt — Tue, 19 May 2009 23:19:39 +0000

"There you have it folks, one more reason we should be doing all we can to eliminate our debt and spend less than we earn, thus granting us freedom from the likes of companies and situations like this!"Well said and I agree 100%! First of all it does seem unfair for them to do this but they are also worried about the rule changes coming next July 2010. With that said I still can't understand why they would let someone who pays them SO MUCH money even at only 8% to go away over this.Personally I haven't used a credit card in over a year and do not plan to ever use one again. All the rewards and brownie points aren't worth the risk! Even for those that pay it off monthly do not seem to consider that they are likely to spend 12%-18% more just for swiping the card because of the huge disconnect emotionally. The credit card companies don't offer those rewards because they want to give people free hats, they offer them because they are smarter than the people who think they are benefiting! They know you will still spend more regardless of how much you tell yourself you won't!Cut up the plastic and live completely debt free!Enemy of Debt’s last blog post..As Seen On CNN.com

By: Miss T

Miss T — Tue, 19 May 2009 17:03:08 +0000

Citibank did this to me a few months ago – they raised my rate from 6.9 to 16.9% – what?!?! So I called, they said it was due to recent “Economic Conditions”. Well, my economic status was just fine so I figured it was better to come up with a different plan. I explained I have great credit and I’m never late on my payments. The rep said I could decline but they would not renew my card when it expired – in JANUARY 2011! LOL! I said “Sure, decline, and in a year and a half we’ll say our goodbyes.”

Gotta love them for trying…keep checking those APR’s!

By: Lakita

Lakita — Tue, 19 May 2009 12:40:09 +0000

Wow, this is unbelievable! Though I’ve been hearing that it would start to happen! Glad you are going to have it paid off before the rate hike! This is just further encouragement to get mine paid off as SOON as possible!!!!

Thanks for sharing. I don’t have a Capital One card and NEVER WILL!

Kita

By: Mike

Mike — Tue, 19 May 2009 12:21:36 +0000

These kind of changes really make me sick. The best defense against them is to make them completely irrelevant by always paying your balance in full. Do that and the interest rate doesn’t matter.