Credit

Up, Up, And Away – Check Your Credit Card Statement!

Have you received a letter from your credit card company?  (It might be bundled in the same envelope as your statement, or it might be delivered separately.)  If so, be sure to read it.  Why?  Because, several credit card companies are changing their terms, rates, and policies. According to Credit Addict, both Citibank and American Express have recently made several changes. A summary of the changes made by American Express – * Cash advance APR is increasing to Prime + 17.99% * Late payment APR is increasing to Prime + 14.99% * Default APR is increasing to Prime + 23.99% * Foreign transaction fee is increasing to 2.7% A summary of the changes made by Citibank – * Purchase APR…

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Credit

How Do Credit Card Companies Calculate Minimum Monthly Payments?

Do you know how your credit card company calculates your minimum monthly payment? In the past, most companies calculated your minimum payment as 2% of your account balance.  Now, however, many companies are using a new formula. The minimum monthly payment equals 1% of account balance plus finance charges plus fees. Assuming an account balance of $4000 at 16% APR: 1% of $4000 is $40. The monthly finance charge on $3960 ($4000 – $40) is The minimum monthly payment would be $40 + $52.80 = $92.80. Under the old 2% method, the minimum monthly payment would have been $80.00. I have to confess, I was completely unaware of the fact that some credit card companies had changed the way that…

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Credit, Top 10

Top 10 Ways To Save Money – Number 3 – Avoid Paying Credit Card Interest

On February 6, 2006, I made the final debt reduction payment and finished paying off all of my debt.  Since then, I’ve been living debt free. I do not make monthly payments to creditors. I do not pay interest to credit card companies. I am free to do what I want to do, when I want to do it, with my money.  Life is good. I loathe the thought of paying interest.  I spent 15 years of my life paying interest – on cars, trucks, furniture, appliances, clothes, food, and dozens of other silly things.  Now, however, if I don’t have the money to pay for an item, well, I just don’t buy that item.  I have to wait until…

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