I don't have a degree in finances but to me it seems like a no-brainer. If times are tough and jobs are scarce....WHY would a big bank want to make things TOUGHER on those poor souls who DO still have an income? Seems like they would WANT to keep the money moving....keep customer satisfaction high...get the people who do have an income to actually SPEND some of it. Makes sense to me.
I must have dozed off while taking the class of Life and How to Come Out of It Alive. A lot of what's happening now just plain doesn't make any sense at all. Case in point.
I open up my MasterCard bill and note that the monthly amount due has increased quite a bit. Now I rarely use this card because it has a high balance and I'm trying desperately to pay it off by making double payments. I immediately suspect that fraud has occurred and there have been charges added to this account but that hasn't happened. Instead....much to my dismay....I observe that my interest rate has increased.
Now I realize that everyone is out there to make more money.....to bleed you dry....and I would have accepted a small increase of a couple percentage points with only a little cussing to myself. But they more than doubled my interest rate. Yep....to a whopping 21.4%....an increase of 11%. You can imagine how much it made my monthly payment SOAR. This is a card I've had for 25 years and have NEVER been late on a payment or over-extended my credit limit.
I called them today. I wanted to yell and scream but that does no good at all. After all, the person I'm talking to doesn't make the rules and doesn't own the bank. Bottom line.....I did get my interest lowered 5% so now I'm at 16.4%, which doesn't make me happy but its better than what it was. I just wish I had the money to pay it off and close it but if I could have done that, I would have done it long ago.
So, can anybody help me understand this. WHY....when so many people are hurting....does a bank UP the interest rate so your payments go higher when everyone has to watch every penny right now. I am going to research this and am going to find the right people to contact to get some sort of legislature going that will put a cap on these credit card companies.....that they can no longer just up your interest on a whim. This is just so wrong. Yes, I know. I shouldn't have credit cards. My dad never had them and always chastised me. But some people ..... like me ...just don't have resources to pay cash for needed items. I am helping a disabled daughter and her two kids also. If you keep up your end of the contract and pay your bills on time, they should have no right to raise your interest rates. I can understand late fees and the over-extend-your-credit-line punishment fees and returned check fees....but not this. (putting soap box away now).