From BH: Re: Credit Cards
If you use credit cards and pay them in full each month, most of this will not pertain to you but you may want to forward this to someone you know who usually only pays the minimum amount due each month.
Commencing 02/22, here are the new rules for credit card companies:
-Your upcoming statement will tell you your minimum payment and how long it will take you to pay off the balance if you only make the minimum payment.
-Your new statement will tell you what payment you need to make to pay off your balance in 3 years.
-Your due date will now be the same each month, so you will consistently know when the payment is due.
-This one I really like, as many are not aware how this was done in the past. If you transfer a balance and get a low teaser rate and then make subsequent purchases, the monthly payments were always applied to the teaser rate and the purchases with the much higher rate were not paid off until the low rate transfers were paid off. Now, any payment above the minimum amount due must be applied to the higher interest rate.
-The key of course is to pay off your balance monthly but that isn't always possible. If you're not paying the balance due in full, if you can, do not use those cards until they are paid off. Use your debit card until your balances are paid in full and then use your credit only if you can pay off the balance each month. Take a look at how much of your payment goes to interest payments each month. Pay the cards off each month and now the interest you have been paying can go to you and not the credit card companies.
Courtesy of Barry Harris
Commencing 02/22, here are the new rules for credit card companies:
-Your upcoming statement will tell you your minimum payment and how long it will take you to pay off the balance if you only make the minimum payment.
-Your new statement will tell you what payment you need to make to pay off your balance in 3 years.
-Your due date will now be the same each month, so you will consistently know when the payment is due.
-This one I really like, as many are not aware how this was done in the past. If you transfer a balance and get a low teaser rate and then make subsequent purchases, the monthly payments were always applied to the teaser rate and the purchases with the much higher rate were not paid off until the low rate transfers were paid off. Now, any payment above the minimum amount due must be applied to the higher interest rate.
-The key of course is to pay off your balance monthly but that isn't always possible. If you're not paying the balance due in full, if you can, do not use those cards until they are paid off. Use your debit card until your balances are paid in full and then use your credit only if you can pay off the balance each month. Take a look at how much of your payment goes to interest payments each month. Pay the cards off each month and now the interest you have been paying can go to you and not the credit card companies.
Courtesy of Barry Harris
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