Credit companies may double Minimum Payments as early as next Month
If you've been using credit cards to do your holiday shopping, you might want to think again. Government regulators are urging banks to double the monthly minimum payments on credit cards. And if you're one of the millions of Americans who carries a credit card balance from month to month, you could be in for a real surprise when you get your next bill.
It's a last minute Christmas shopping rush. For people who buy with credit cards, it could take a while to pay off all those gifts. And with consumer debt up to two trillion dollars and 40 percent of credit card holders carrying a monthly balance, credit card debt is a huge problem in this country.
That's why banks are going to double minimum payments on those card balances, starting as early as next month.
We asked shoppers if they pay their entire balance every month.
"Heck no! It doesn't ever work that way. Not since I got my first card in 1963."
One man told us he's in so much debt, he wishes there was no such thing as credit cards.
"It's no good, it's better just to buy what you have in your pocket and then you don't have to worry about it later."
Even though the doubling of the minimum credit card payment might hurt some consumers, the government says it's being put into place to help them pay off their debt.
For example, if you have a credit card balance of $2,000 dollars with an 18 percent interest rate, it will take you 30 years to pay it off if you pay the usual 2 percent minimum payment. But with that minimum increasing to four percent, it will only take 10 years to pay off.
Diane Gaskill says she pays hers in full every month for that very reason.
"I know a lot of people who don't and are always worried after the first of the year and trying to catch up and save all their money so they can pay it off.
But for some, these credit card changes won't make an ounce of difference in their overall debt.
"Won't affect me a bit. Cause if I can't pay it at them minimum now, I can't pay it at the minimum rate then."
And with new bankruptcy bills in place now, it's even harder to wipe out consumer debt.
