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Reducing minimum payment

post #1 of 5
8/14/10 at 11:29am
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We just had our minimum monthly payment on our cc reduced by almost 50% to $159 a month (on a balance of 9K). Why would the cc co do this? Seems like an awfully low payment. Not complaining, but nothing else has changed on our balance sheet. Seems I hear about increases more than decreases.
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post #2 of 5
8/14/10 at 11:36am
To extend the life of your consumer debt and reap more money from you.
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post #3 of 5
8/14/10 at 1:12pm
Quote:
Originally Posted by Ruthiegirl View Post
To extend the life of your consumer debt and reap more money from you.


ETA: I just ran a quick online calculation for you. At 17% interest, a minimum payment of $300 on $9k would take you 40 months to pay off. At $159 it would take you 116 months!!!!
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post #4 of 5
8/14/10 at 2:22pm
did you make an extra payment that got credited to this cycle? If so it would *look* like your payment got reduced, but you actually just paid some early..

If not, then IDK lol
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post #5 of 5
8/14/10 at 3:13pm
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Quote:
Originally Posted by surrogate View Post
did you make an extra payment that got credited to this cycle? If so it would *look* like your payment got reduced, but you actually just paid some early..

If not, then IDK lol
No - we got a letter saying they were reducing it to 1% of the balance plus interest. Our interest rate is 7.99%. I was just curious if this was the new thing or something. We'll continue to pay above the minimum, although I am happy to have a bit more flexibility if we need it.
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