tag:blogger.com,1999:blog-5465015914589377788.post3916749676463848156..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: New Credit Card Minimum Payment RulesMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5465015914589377788.post-38254794124326644372020-11-01T08:47:12.922-05:002020-11-01T08:47:12.922-05:00The comment above is a reply to Passive Income Ear...The comment above is a reply to Passive Income Earner's comment:<br /><br />I always pay mine. Expect for the time when I am a day late and the frustrating part is when it happens on the weekend since it won't take it until the first business day ... I usually automate it as soon as I see the bill now.<br /><br />It's unfortunate that the bank don't give us the option to pay it automatically from our bank account (automatic withdrawal). A lot of people who come from the UK always comment on this inefficiency at our banks. I suspect they make too much money on a late fee that they don't want to give the option.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-34832416440087029902010-06-11T02:15:51.057-04:002010-06-11T02:15:51.057-04:00@Gene: I've heard of that phenomenon in other ...@Gene: I've heard of that phenomenon in other contexts. I'm not sure what the answer is to protect people who have no regard for their future selves.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-87662919138807629522010-06-10T21:47:25.290-04:002010-06-10T21:47:25.290-04:00@ The Passive Income Earner:
Actually, my MBNA ca...@ The Passive Income Earner:<br /><br />Actually, my MBNA card allows me to either pay my minimum payment or total outstanding balance automatically from an external bank account. I have them pay it in full on my monthly due date.<br /><br />Also, my CIBC Visa card allows the same privilege. Again, I take advantage of it.<br /><br />That's not to say MBNA is perfect. I like them, but it is surprisingly difficult to find my total balance when logged onto their website. They readily show my available credit and my minimum payment, but finding my total balance on their site requires an extra mouse click and some searching. It's a pretty clear message: they would rather I not pay my entire balance.<br /><br />@MJ:<br /><br />I heard an interesting tidbit on the Planet Money podcast. Where US state governments have capped interest rates on payday loans, all lenders tend to charge that maximum amount. Where there is no cap, the market is more competitive. Interesting, isn't it?<br /><br />The economist they interviewed postulated that in giving a maximum interest rate, the state is somehow encouraging pay day loan companies to collude with each other on that maximum rate. Where there is no maximum, competitors have to experiment to find a sweet spot where they can attract customers while maximizing profits. Here's the podcast and a short summary:<br /><br />http://www.npr.org/blogs/money/2010/05/the_tuesday_podcast_payday_len.htmlgenehttps://www.blogger.com/profile/05608927986297939720noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-87542372491997393522010-06-10T10:48:35.206-04:002010-06-10T10:48:35.206-04:00I did not believe you had personally paid such int...I did not believe you had personally paid such interest rates. I just don't see how anyone can pay them.<br /><br />It leads to a lifetime struggle to get out of debt. <br /><br />I understand that life is a struggle when poor and out of cash. But unless you are buying food or a true necessity, no one can afford to pay these interest rates and ever expect to get out of trouble.<br /><br />People must - for their own well-being - learn to avoid those foolish, instant gratification, purchases.MarkWolfingerhttp://blog.mdwoptions.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-61044392982229842422010-06-10T10:33:35.349-04:002010-06-10T10:33:35.349-04:00@Mark: I've never actually paid any interest ...@Mark: I've never actually paid any interest on this card. But if I ever have some sort of problem paying on time, the interest rate is definitely punitive.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-327203477075804822010-06-10T08:54:17.724-04:002010-06-10T08:54:17.724-04:00Michael,
Agree that the changes are painless, but...Michael,<br /><br />Agree that the changes are painless, but paying 29% interest is sufficiently painful. Painful enough to last a lifetime.MarkWolfingerhttp://blog.mdwoptions.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-22140041140169183202010-06-10T08:03:38.456-04:002010-06-10T08:03:38.456-04:00@Passive Income Earner: Paying in full each month...@Passive Income Earner: Paying in full each month is definitely the way to go. I've heard of banks allowing an automated payment of the minimum amount, but this is little use to most responsible credit card users.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.com