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New Visitor
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Posts: 3
Registered: ‎06-27-2009

Re: Raising of Minimum Payment (Chase)

Dear Mixed -

 

I couldn't agree more.  I also will pay off my Chase card and leave a small small balance and try to tie up their credit line as long as possible.  

 

 

New Visitor
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Posts: 3
Registered: ‎06-27-2009

Re: Raising of Minimum Payment (Chase)

PS - Financial planners should probably stop advising people to take advantage of low interest cc offers to manage their cc debt.  (are there any such offers anymore?? lol)  

 

The other thing to do is not invest in Chase.  I plan to avoid mutual funds in my 401(k) that have significant holdings in Chase.  

Valued Contributor
usmc58555
Posts: 1,673
Registered: ‎02-18-2009

Re: Raising of Minimum Payment (Chase)


mixed wrote:
Ok, for those interested in a practical solution for a real person with budgetary and time limits.  Here is what I decided to do.  With a combination of balance transfer and my property tax rebate I am going to pay this card half off in the coming months before or as the policy change takes hold.  My monthly payments will still increase, but not more than double.  The new minimum payment will be similar to what I paid before because I usually round up to the nearest $10 above the minimum anyway (even on my lower rate cards [others I pay much more]).  The remaining balance will still be at the great "life of the loan"rate and I will have payments I can manage.  When I pay this card off most likely I will let my Chase card die of inactivity, because of higher underlying rates Chase charges and how they treated me over the years.

 

Hopefully your cash "shell game" will also be equally met by budgeting, saving and increasing you available cash by evaluating how you currently spend and use money.

 

The average person who has not taken a magnifying glass and a deep look at their inflow and out flow can save between $200-$500 a month with little to no trouble.

An extra few hundred dollars a month can easily pay off your bills much faster, and allow you to save and invest money when you are paid off.

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Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
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Established Contributor
Susyquk
Posts: 504
Registered: ‎03-27-2009

Re: Raising of Minimum Payment (Chase)

You know who this really sucks for, and I haven't seen mentioned here yet.

People who are trying to get mortgages.  Now I am lucky the balance on DH's chase card is low and we pay 10% a month anyway to try and get it paid off BUT...

If you have a $10,000 balance (or more) and your minimums go from $200 to $500 a month for some that is going to push them over the DTI ratio for mortgage levels (certainly on automated underwriting)

We are only about $150 from the top of the DTI ratios as is, we can easily afford more than that extra $150 a month in terms of payments and still afford the mortgage we are applying for (and will be paying out more than that to reduce our outstanding debt) but if it were there in the minimum payments on our credit reports then we would not be given the mortgage in the first place (even tho we could afford to pay it)

I don't think paying 5% is a bad thing (and we do that on all of our credit cards anyway) because yes, it will reduce down the debt - I just think that if it stops you from being able to buy a home or being able to focus on paying off the higher interest balances you have first then it is putting some into a very unfortunate position
Valued Contributor
usmc58555
Posts: 1,673
Registered: ‎02-18-2009

Re: Raising of Minimum Payment (Chase)

realistically, if you are trying for a house with maxed out cards I think you should reconsider trying to be a homeowner
Signature line begins:
Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
Your credit score is an aspect of your credit profile. Important? yes but just an aspect. Contributing/supplemental information determines the finer point of the deal. Ask any question, respect me not to get mad if the answer is not the affirmation you are looking for,
Established Contributor
Susyquk
Posts: 504
Registered: ‎03-27-2009

Re: Raising of Minimum Payment (Chase)


usmc58555 wrote:
realistically, if you are trying for a house with maxed out cards I think you should reconsider trying to be a homeowner

Who said anything about cards being maxed out?

 

DH and I for example have limits of about $30,000 between us - for us we have about $9,000 in outstanding CC debt (mostly from before DH was husband and when he used the card to pay for everything for 6 months after being made unemployed and his roommate moving out and stealing most of his belongings when he went)

 

It's entirely possible for someone to have $10,000 of debt without being maxed out on their cards

Valued Contributor
usmc58555
Posts: 1,673
Registered: ‎02-18-2009

Re: Raising of Minimum Payment (Chase)


Susyquk wrote:

Who said anything about cards being maxed out?

 

DH and I for example have limits of about $30,000 between us - for us we have about $9,000 in outstanding CC debt (mostly from before DH was husband and when he used the card to pay for everything for 6 months after being made unemployed and his roommate moving out and stealing most of his belongings when he went)

 

It's entirely possible for someone to have $10,000 of debt without being maxed out on their cards


OK rephrase:

 

If you are 150.00 away from Maxing out your DTI to get a house maybe you should reconsider choosing homeownership.

 

Since it is a very realistic expectation that the joys of homeownership can come with unexpected 200 a month emergencies.

Signature line begins:
Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
Your credit score is an aspect of your credit profile. Important? yes but just an aspect. Contributing/supplemental information determines the finer point of the deal. Ask any question, respect me not to get mad if the answer is not the affirmation you are looking for,
Established Contributor
Susyquk
Posts: 504
Registered: ‎03-27-2009

Re: Raising of Minimum Payment (Chase)

Eh, I guess that would be true for a lot of people but my income is not currently being included in the DTI (although my car loan payments are as we live in a community property state)

 

On top of what is being counted as income we actually have another 2000 a month Income that is not included in the calculation (that's net after my tax, health insurance (and DH's), dental insurance, IRA contributions, car payment etc)

 

So we actually have plenty of income to play with... just not for the DTI calculation unless we put me on the mortgage and include my income


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