Sunday, February 21, 2010

DingleBarry & My Credit Card
...and why I just cancelled it

Stick with me on this one --- it just might pertain to you.

Another example of the Doofus-in-Chief screwing up the economy. I only own two credit cards. Scratch that... just one.

Here's some of a letter I just got in the mail;
Important Information regarding future No Interest Promotions.

While government regulations are changing credit card programs across the industry, XXXXX's commitment to providing value to our loyal customers is not.

Specifically, with regard to the upcoming regulated changes, XXXXX would like to advise you that as of this February 22, 2010, all new deferred interest (No payment/No interest) promotional offers will require minimum monthly payments.
I got that particular credit card precisely because I wanted no payment/no interest for X amount of time. But now DingleBarry has changed that. He cares for me soooooo much, I now have to make "minimum payments" from the moment of purchase.

I know I have to pay the bill... of course! I had the bills paid waaaaay before the end of the grace period.

Now Here's The Kicker --- like I said, it's precisely because I had no interest accrued over a period of X months and I had the option to skip a monthly payment here and there depending on how I was managing my finances. Not anymore.

I had the financial freedom to buy things that I normally wouldn't have purchased. Granted, the company never made one cent from me in interest payments, but I bought hundreds of dollars worth of merchandise. Not anymore.

Idiot-stick has taken away yet another small slice financial latitude and longitude that I once had to pump money into the economy. Not anymore.

Because of him, my discretionary spending has been cut way back. Too bad we can't say the same out the federal government.

BTW, when I called to cancelled this credit card, the customer service rep asked why I was cancelling. I gave her a two word answer: "barack obama". She understood perfectly.


Blogger Adeodatus49 said...

Get a credit card--Master Card or Visa--from a Federal Credit Union. It's a better deal. Then gain, use if for convenience and don't EVER put yourself in a position of having to pay your monthly statements off on time. If so, then you shouldn't have a credit card in the first place!

1:02 PM  
Blogger Old Bob said...

I like what Adeodatus says. My Federal Credit Union issues Visas, and they do charge 3% per month on the unpaid balance as minimum payment. About half or two-thirds of that goes to principal, and I have just set up an automatic fixed payment system of about 5% of the present unpaid balance; some small part goes to interest, all the rest to principal. Also, they don't charge early-repayment fees on any debt. I like that too. I use the card only once or twice a year, so it spreads out repayment of large (over $100) debts to fit a small fixed retirement income.

1:11 PM  
Blogger TCN said...

I have no credit cards. Mortgage is enough debt, thank you. Paid off the student loans years ago, and I use the mailers from card companies for starting fires in the fireplace.

I use a debit card for online stuff. Only put in enough money for what I purchase, so no monkey business.

Living within one's means is true freedom, anyway, monetarily and sin-wise. Worth the effort, IMO.

1:54 PM  
Blogger Kevin Whiteman said...

'Zactly. The one ond sole CC I have is from the exact type CU you've described.

3:01 PM  
Blogger Adeodatus49 said...

More on credit cards.

I particularly hate the Capital One Visa mail solicitations. Capital One is all over TV in their commercials. And they are rank liars! Capital One even solicited my college son and college daughter.

My son and daughter both have Credit Union credit cards that my wife and I have co-signed. They put expenses on it, some of which we agree to pay--related to food, clothing, some auto expenses, college costs, etc. This way we get to "surveill" their spending habits. And this is a gentle way to teach them how to use these cards responsibly, pay their bills, use checking accounts (although most transactions can be deducted on-line with their accounts), etc. Unfortunately, young folks don't learn responsible personal financial management in high school, and certainly not in college. BTW, these colleges let irresponsible credit card companies--the kind with outrageous fees, conditions, etc.--on campus to lure students to sign up for credit cards by offering freebies such a T-shirts, mugs, etc. They want students to get into trouble with huge debt, because they know their parents will have to bail them out. A pox on them (credit card companies, banks, and colleges/universities)!

5:55 PM  
Blogger Dirtdartwife said...

We're doing the Dave Ramsey debt snowball. From 12 credit cards down to 4 and we're on a roll to get the rest paid off. We do the "no interest/no payments" exactly for specific reasons too and they're major purchases (fridge, washer/dryer) too. It's sad that this is happening and I love your response. I'll have to use it when dealing with phone calls.

5:38 PM  
Blogger StarbucksMom... said...

Agreed, if Obama had REALLY wanted to help the American people, he would have made this bill effective when he signed it, instead of giving the CC companies months to hike interest on peoples cards. He is in their pocket, despite his protestations.
This is just another example of how they get to screw us. (Pardon my french).

4:57 PM  

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