The State of the Economy & Credit Rates

November 16, 2008 at 1:29 pm (credit cards) (, , )

I mentioned in a recent post that my personal line of credit went up 1.25% last month (Wells Fargo Bank). I could “opt out” by closing the account and paying it off immediately. I can’t do that, since I don’t have $14K+ on hand lying around.

My one and only credit card, Citibank, just sent me a notice that they are raising lots of fees: default rate, cash advances, and foreign transactions. I could opt out, but then they’ll cancel the card and I have to pay it off completely by the end of the year or the card’s expiration date, whichever is later. It’s a shame, I’ve had this card for more than a dozen years and this is how they reward me. I decided to opt out on principal. I probalby would have kept the card except for a deceitful charge on my most recent statement.

I have heard before that banks and credit cards charge you for things in the hopes that you won’t notice or read your statement. Since starting this whole debt repayment process, I’ve been vigilant about keeping up on my balances and statements. Last month I finally paid off my balance in full. I did have some large charges due to car expenses that I charged before I decided to stop using this credit card, but I figured, no big deal, I’ll just pay it off and I won’t have any interest charges. WRONG! They put a finance charge of $21+ on my balance of $550, and it was all new! When I called to complain, they said it was a “bank error.” Scammers, the lot of them. Yes, credit cards are evil, and after I got the fee raising notice I was done with this card. They suck.

Don’t you love it? 700 billion for a bailout of financial institutions, and then they turn around and raise rates across the board indiscriminately.

Why didn’t I start this journey sooner?????


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