I guess it will be a good thing to get the card paid off quickly, but stressful to try to manage! We actually have 1 more credit card with a balance and low rate (5.9%)--if that rate goes up, we'll be in trouble! (I know it's bad to carry balances on credit cards! DH used the cards to purchase parts to renovate 2 classic cars. The cars are done and have value, so his reasoning was he could try to sell the cars to pay off the debt in the case of a job loss or other major catastrophe.)

Any other cc companies increasing rates on good customers?

Our other card is a Lowe's Visa (not a Lowe's store card, confusing I know) which is affiliated to Capital One so we are not able to transfer the balances between the 2 cards. The Lowe's Visa is our lowest rate card, which is why we were working on paying down the higher card 1st.

I will probably cancel my Chase card when they send out notice of fee and rate increase.

BMMalone,

Probably your best bet would be to let that card expire and then provide a written explanation to the credit bureaus to offset the expected drop in your credit score.

My concern is my Citibank card. We just paid it off ($5000 credit limit) and I'm concerned they will close it because of their problems. We rarely use credit cards BUT like the idea of $5000 extra in case of an emergency or something. I feel like they will see a paid off card and wipe us out and close the account. Can they do that?? We were never late and never had more than $1000 balance.

Run a small charge on the Citiback card once per month or so and pay it when the bill comes, just to keep the account active.

... and the reason(s).

If they don't hear from you and a hundred other disgruntled cuss-tomers ... there's almost no possibility that they may choose to make any change to, from your point of view, improve their service.

ole joyful

From now on, only charge what you can pay in full each month. Tell your DH if he wants more car parts or whatever to save the $$ so he can pay in cash. The economy is so different today, we all have to adjust our financial behavior.

PS It seems that DH got you in this mess. Shouldn't he be the one to figure out how to solve it?

Good luck!

... and you know that there's no money in three of them ...

... into which pocket do you stick your hand when you need some?

... how often do you stick your hand into any one of the three pockets where you know that there's no money even when your hand gets all of the way to the bottom??

Memo ... to individuals, as to businesses (but most of the latter know it now) ...

... when you need money ...

... go where the money is!

Like the credit card companies do.

They may cancel the cards of folks who've been giving them a rough time, i.e., not paying.

But they don't mind your payment being late - look at the large fee that they charge ... for what ... waiting an extra day or two for the payment?

Suppose it's $100.00 payment ... at 10% annual rate, that's $10.00 per year, or about 3 cents per day. If your payment arrives 3 days late ... their cost is about a dime ... and they charge you a $20.00 late fee?

Think they're about to cancel your card?

Why would they??

They're making a very nice bucket of money off of you ... and others like you.

You go over your credit limit?

More of the same.

So why would they shut you down??

You're a profit centre for them!!

If so for them ... how about you??

If you blow an engine in your car tomorrow ... how will you pay for the repair?

Or ... if you get laid off ... what will you live on?

Have you ever had a pair of handcuffs snap around your wrists?

I haven't either ... and I don't want any: I have absolutely no hankering for such an experience! I love my financial freedom!!

If you don't have a financial cushion of some funds available in case of immediate drastic need, I claim that you have a pair of handcuffs lying on your dresser, right beside where you lay your wallet at night.

Just waiting for an emergency need of money ... or a layoff ... to have them jump up and snap around your wrists.

Financial freedom - that ain't!!

Hope you all have a lovely weekend ... and if you'd be sweating blood if you don't get a paycheque ... or two ...

... please - do yourself a favour.

Even though it may be a beautiful weekend, find a way to enjoy it while spending little or nothing.

Start that savings fund ... build yourself a financial cushion. Aim at a minimum of 3 months' income available in case of emergency. Six months' earnings, or 9 months' ... or up to a year's worth, is even better.

After 25 years or so as a personal financial advisor, I don't have it, myself, some of the time.

Some of the time I have money in the bank, money market fund, etc., immediately available ... but sometimes not. I have a credit card that I don't use much, that I can use to fix my car, fly me home in case the travel co. goes broke and the hotel says pay - again - or go to jail, etc.

And I have a Line of Credit at the bank, initiated several years ago at no fee, fully secured by stock or mutual fund certificates, in order to arrange a low interest rate ... and it lies there unused, most of the time (but there's no inactivity fee to pay).

If I use the card for emergency ... I pay off the full balance prior to the due date, using my Line of Credit if the amount in my bank account, money market, etc. are short.

Then ... pay off that loan (low interest - far lower than the rate charged on unpaid balances owing on the credit card) as soon as possible.

I want my money working for me ... not be forced to use other folks' money ... and pay rent on it while I'm using it ... especially if it's the kind where they charge very high rates!

I never want to have to darken the door of a payday loan company: their rates are ... *horrendous*!

(By the way ... have you read my thread about the differences between a paycheque and a pension cheque?)

ole joyful