Comments on: My minimum payment is $22 and that is absurd http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Fri, 19 Mar 2010 01:04:52 -0700 http://wordpress.org/?v=abc hourly 1 By: Rachel http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/comment-page-1/#comment-62296 Rachel Wed, 21 May 2008 01:19:35 +0000 http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd#comment-62296 12 years is right. I favor calculating using: http://www.jeacle.ie/mortgage/ for loans. 12 years is right.

I favor calculating using: http://www.jeacle.ie/mortgage/
for loans.

]]> By: Jimbo Jones http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/comment-page-1/#comment-1872 Jimbo Jones Tue, 11 Apr 2006 14:34:15 +0000 http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd#comment-1872 Watch this Frontline special from a year ago about the collusion between our representative Congress and the credit card industry. It will make you want to spit in the face of every scumbag in Congress. <a href="http://www.pbs.org/wgbh/pages/frontline/shows/credit/" rel="nofollow">http://www.pbs.org/wgbh/pages/frontline/shows/credit/</a> Watch this Frontline special from a year ago about the collusion between our representative Congress and the credit card industry. It will make you want to spit in the face of every scumbag in Congress.

http://www.pbs.org/wgbh/pages/frontline/shows/credit/

]]> By: johnnydebacle http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/comment-page-1/#comment-1871 johnnydebacle Tue, 11 Apr 2006 09:48:28 +0000 http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd#comment-1871 To correct myself, theter would still be approx half your debt left at that point. To correct myself, theter would still be approx half your debt left at that point.

]]> By: johnnydebacle http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/comment-page-1/#comment-1870 johnnydebacle Mon, 10 Apr 2006 18:00:03 +0000 http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd#comment-1870 According to that Web 2.0 credit card payment app, with your data, you would pay it off in 2026 and would have paid $4100 in nominal dollars for your $1437 real dollar debt, if you only paid the minimum each month. According to that Web 2.0 credit card payment app, with your data, you would pay it off in 2026 and would have paid $4100 in nominal dollars for your $1437 real dollar debt, if you only paid the minimum each month.

]]> By: Mario http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/comment-page-1/#comment-1869 Mario Mon, 10 Apr 2006 17:38:35 +0000 http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd#comment-1869 Why do you have credit card debt? Why do you have credit card debt?

]]> By: Jonathan Radande http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/comment-page-1/#comment-1868 Jonathan Radande Mon, 10 Apr 2006 14:37:32 +0000 http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd#comment-1868 The credit card companies are not evil. They are in the business of lending you money and making money. They impose minimum payments in order to give you an option to pay little over a long period of time. If you don't know how to use your credit cards, you should not own one at all. Yes, if you pay only the minimum, you will end up paying out of your @ss. But at the same time, you should know better than to pay the minimum or even carry a balance. So i don't think that the credit card companies are all that evil. it's only its users who can, at some times, be extremely dumb. The credit card companies are not evil. They are in the business of lending you money and making money. They impose minimum payments in order to give you an option to pay little over a long period of time.

If you don’t know how to use your credit cards, you should not own one at all. Yes, if you pay only the minimum, you will end up paying out of your @ss. But at the same time, you should know better than to pay the minimum or even carry a balance.

So i don’t think that the credit card companies are all that evil. it’s only its users who can, at some times, be extremely dumb.

]]> By: Trevor http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/comment-page-1/#comment-1867 Trevor Mon, 10 Apr 2006 12:43:26 +0000 http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd#comment-1867 Didn't the government look into and/or pass a law requiring credit card companies to raise the minimum payment to one that would require some of the money to be paying toward the principle, so there's a reasonable expectation of paying off the minimum and actually, eventually, paying off the debt? or is the 1.5% minimum a reflection of that? (if so thats pretty sad) Didn’t the government look into and/or pass a law requiring credit card companies to raise the minimum payment to one that would require some of the money to be paying toward the principle, so there’s a reasonable expectation of paying off the minimum and actually, eventually, paying off the debt? or is the 1.5% minimum a reflection of that? (if so thats pretty sad)

]]> By: Hawk http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/comment-page-1/#comment-1866 Hawk Sat, 08 Apr 2006 17:33:13 +0000 http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd#comment-1866 I've heard that if you pay off every month, then the bank will suddenly drop your 'grace period', forcing payments to be due when your billing period ends. they may do this without notifying you immediately. Needless to say, a lot of people are afraid. They have fear, they go oh crap, I'm a little over my head. I'll just pay the minimum. And then next week, they're more over their head. Okay, I'll just pay the minimum, i'm saving up to make a better payment. After years of this fear-based procrastination, suddenly all lines of credit are maxed out and there's nowhere to turn. Does this mean that the person doing this is a moron and stupid and deserves everything they get? They need help understanding how this stuff works, and they need help getting over the things that make them dig their head in the sand when something scary happens. This is life. Preying upon people like this intentionally is bad. Doing it unintentionally as part of your business model is unfortunate. Trying to educate people actively is a good idea. My father did this to our family in the mid 90's. My parents didn't have to be in 75,000 of non-automotive/mortgage debt. There was no reason. It started and snowballed and as it got worse, it only got easier to just pretend it didn't exist for fear of the repurcussions. I've noticed that there's a tendency towards forcing extreme personal responsibility on people in some circles. Look at the idea of making people solely responsible for their retirement. I suppose I'm getting socialist for some reason, but there's responsibility when you deal with the general public. Playing tricks on people to extort money out of them, then turning them over to the Department of Homeland Security because they suddenly got up the nerve to dump $10,000 at their debt and erase it... no. Sorry. Link to what I'm talking about (credit cards and homeland security): <a href="http://www.shns.com/shns/g_index2.cfm?action=detail&pk=RAISEALARM-02-28-06" rel="nofollow">http://www.shns.com/shns/g_index2.cfm?action=detail&pk=RAISEALARM-02-28-06</a> I’ve heard that if you pay off every month, then the bank will suddenly drop your ‘grace period’, forcing payments to be due when your billing period ends. they may do this without notifying you immediately.

Needless to say, a lot of people are afraid. They have fear, they go oh crap, I’m a little over my head. I’ll just pay the minimum. And then next week, they’re more over their head. Okay, I’ll just pay the minimum, i’m saving up to make a better payment.

After years of this fear-based procrastination, suddenly all lines of credit are maxed out and there’s nowhere to turn.

Does this mean that the person doing this is a moron and stupid and deserves everything they get? They need help understanding how this stuff works, and they need help getting over the things that make them dig their head in the sand when something scary happens.

This is life. Preying upon people like this intentionally is bad. Doing it unintentionally as part of your business model is unfortunate. Trying to educate people actively is a good idea.

My father did this to our family in the mid 90’s. My parents didn’t have to be in 75,000 of non-automotive/mortgage debt. There was no reason. It started and snowballed and as it got worse, it only got easier to just pretend it didn’t exist for fear of the repurcussions.

I’ve noticed that there’s a tendency towards forcing extreme personal responsibility on people in some circles. Look at the idea of making people solely responsible for their retirement.

I suppose I’m getting socialist for some reason, but there’s responsibility when you deal with the general public. Playing tricks on people to extort money out of them, then turning them over to the Department of Homeland Security because they suddenly got up the nerve to dump $10,000 at their debt and erase it… no. Sorry.

Link to what I’m talking about (credit cards and homeland security): http://www.shns.com/shns/g_index2.cfm?action=detail&pk=RAISEALARM-02-28-06

]]> By: Steve Ryner http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/comment-page-1/#comment-1865 Steve Ryner Sat, 08 Apr 2006 04:07:19 +0000 http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd#comment-1865 Check out <a href="http://www.maedastudio.com/2006/credit" rel="nofollow">John Maeda's Page</a> for a nice Web 2.0 view of credit card payments. Check out John Maeda’s Page for a nice Web 2.0 view of credit card payments.

]]> By: Victor http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd/comment-page-1/#comment-1864 Victor Sat, 08 Apr 2006 03:16:59 +0000 http://www.iwillteachyoutoberich.com/blog/my-minimum-payment-is-22-and-that-is-absurd#comment-1864 I hate when people say things like this. "Credit card companies are only interested in offering more credit", or "Walmart is only interested in selling more stuff", or "Businesses are only interested in making more money." Duh, guys...it's BUSINESS. Yes, there are businesses that give to charity and such, but in the end it's all about the bottom line. Don't be surprised when you find that out every two weeks. I hate when people say things like this. “Credit card companies are only interested in offering more credit”, or “Walmart is only interested in selling more stuff”, or “Businesses are only interested in making more money.” Duh, guys…it’s BUSINESS. Yes, there are businesses that give to charity and such, but in the end it’s all about the bottom line. Don’t be surprised when you find that out every two weeks.

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