As the recession drags on and consumers are struggling to keep their heads above water, JPMorgan Chase is throwing out bricks to many of their customers. About 15 million Chase credit card holders are going to get an unpleasant surprise in August when their minimum payment jumps from 3% to 5%. If you have a $10,000 balance on your chase card, instead of the typical $300 payment, you may be looking at a $500 payment. In addition chase is raising the fees on balance transfers from 3% to 5%.
Credit Card customers of all banks can expect these actions soon as the new laws such as the Credit Card Accountability Responsibility and Disclosure Act, which goes into effect on August 20th, put more and more restrictions on the banks. On the surface these look like good ideas, but all they are going to do is require that the banks look for other creative ways to nickle and dime their paying customers to make up for the lost revenue.
These rate increases are pushing more and more people to scream (I AM MAD AS HELL AND I AM NOT GOING TO TAKE IT ANY MORE). Banks are seeing default rates in record numbers. People are being pushed to the breaking point and have decided that enough is enough. Consumers are turning to alternative options such as Debt Settlement or Bankruptcy to get rid of their debts.
Now more than ever, consumers need to create a formal plan for shedding debt as quickly as possible. Do not rely on your credit cards for an emergency fund. People are learning every day that their credit can be taken away by the bank in an instant. You need to have your own cash reserve fund and it is almost impossible to create that while in debt. GET OUT OF DEBT NOW!!!
The rich rule over the poor, and the borrower is servant to the lender. Proverbs 22:7