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Article: DEBT DILEMMA; Credit card changes squeezing consumers; How we use credit cards
- Article from:
- The Patriot Ledger Quincy, MA
- Article date:
- December 31, 2005
- Author:
CopyrightCopyright 2005 The Patriot Ledger Quincy, MA. Provided by ProQuest LLC. (Hide copyright information)
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The Patriot Ledger
If you haven't spent that Christmas bonus, save it for your next
Visa bill.
Credit card issuers like Bank of America and Citibank have quietly
raised monthly minimum payments. Previously, they required
cardholders to pay at least 2 percent of the balance each month, but
they are increasing the rate to 4 percent.
The federal government has been pushing credit card issuers to
raise the rate for years, faulting low minimum payments for allowing
Americans to wallow in debt for decades.
But with many banks making the change in December, those who work
with debt-ridden consumers are concerned that people will end the
holidays with painfully unaffordable credit card bills.
"It's ...