CC Interest Rates going up

[yourbeginnings]

Just heard on CNN that WAMU will be raising it interest rates by 100% even for people that have been currently and paid on-time. Discover is also raising their fees by 30%. BOA has already increased their rates.

Fortunately I don't have credit card debt, but for those who do it maybe a good to time try and pay them off/down.

[lucille]

I saw this today also. I am really glad I don't carry any credit card debt right now. Many people could end up seriously trapped. With the cost of everything else going up people are going to be less able to pay off a credit card in full to get out of this interest hike. Many will have this dumped on top of other financial strains.

[jdp]

I was afraid this would happen. What a mess this is going to be! I haven't had any cc's since mmmmm, 2002? When my OWN stupidity caused intense interest rate problems. I promised to never get trapped again - only take loans for things like a car or a house (preferably not even a car but oh well). I kept that promise. Thank Goodness!

I was kind of teehee'ing when I heard the news because what if you are in a 0%? Ok, not funny.

[yourbeginnings]

I had purchased my car on a WAMU credit card at 0% interest about 3 years ago. I just kept transferring the balance to other 0% card offers and paid the car off in about about 2 years. Glad I had the opportunity to pay it off before todays news.

[Finally_Frugal]

Just one more reason to get those credit cards paid off, if you haven't done so already. I'm just below $3,000 on my last credit card, and I can taste the freedom. It's at 4.99% which isn't bad, but I hope I can get it paid off before the rate increases. . . .

[gtwise]

Yup, I have been getting credit card agreement amendments on a daily basis (I have a lot of accounts) lately. It's all aobut increased fees and interest rates. Luckily it doesn't really affect me other than the dwindling chance of doing another 0% app-o-rama.

[ThePennyMine]

That's amazing, and should be illegal on so many levels!

There's times when I envy the great credit card deals you Americans get, but its when I read stories like these that I realise just how lucky I am.

[gt0163c]

Originally Posted by ThePennyMine

That's amazing, and should be illegal on so many levels!

Just out of curiousity (not trying to start a fight, I really am interested to know), why do you think this should be illegal?

People who use credit cards and who take on debt can (and should) read the agreements prior to using the cards, so they know what they're getting into. All the information is available. The credit card companies are in it to make money. People aren't forced to use high interest rate (or any other) credit cards. So, where is the (preceived) illegality?

I agree that it's not "nice" for credit cards to raise interest rates a lot very quickly. And I understand that some people get into credit card debt through no fault of their own (medical issues, loss of employment, multiple issues all at once). And, yeah, it's a bad situation that can have major consequences for year. But why should credit card companies be punished for things that they can't control if consumers shouldn't be punished in similar sitiuations?

[Julie Rains]

I love to see the different perspectives offered by those who are not in the USA so though I also wonder (initially) why someone would ask why rising interest rates aren't illegal, I think it is great to consider that perhaps rates should be controlled.

Even the USA has had usury laws that were adhered to. Here's some info from wikipedia on this topic.

[Jason830]

This is why I have minimal credit cards...Im happy I dont have much cc debt, especially nowadays!