Why pay on time? to be stabbed in the back again, and again.

Recently one of my credit cards dropped my limit. - No big deal never used card for purchases it was the "holder" of my debt with a "fixed rate".  In hind sight that should have been a red flag. One statement later - my interest rate was increased on the same card.  Was I being targeted? Had I missed a payment?   The nice customer service rep explained it was not me, it is a "reflection of the economy" and that many accounts have been affected.  

I have read Suzie Ormond and listen to the Clark Howard. I kept my balance on all the cards under 80% of maxed out (limit) & made sure all cards were paid. Always pay the highest interest card FIRST and everyone else got the minimum.  My lesson had been learned -- I knew if I fell into the over 80% category - they bank would pool me with the maxed out or delinquent accounts and all my terms would be changed.

Then shady got greedy; the credit card company dropped my limit so low I was almost maxed out and the following month, they could then doubled my interest rate.

Talk about kick a dog when it's down.  

I have become a savvy person with my credit card over the last 18 months because I am trying to pay them off. The debt I created in my early 20's by moving too many times, shopping, lack of medical care, school - you name it, I charged it.   I do not claim to be innocent-I have owned up to my debt - that does not mean I deserve to be taken advantage of.

I am not the only one on the banks S**t List.

Relaxing with my Sunday morning paper and coffee, there was my answer in the Work & Money section of the N & O "Banks had time to make changes".  Mary Cornatzer had an article talking about Congress' new bill to improve credit card regulations and the February deadline!!! Ugh. 

Then it hit me - the customer service rep that said "reflection of the economy" really meant - "hey lady --we have to charge you up the wahzoo now because the rules change in February"

There must be something I can do besides just wait and watch the bills spike.  Pay it all off in one swoop was not financially possible. Google to the rescue-  Articles from both Bloomberg & Time set me straight, I am not being targeted - we all are.

• A Brief History of Credit Cards
• How Banks Plan to Limit Credit Card Protections
• Credit Card Bill Playin Fair Not Foul

The changes in the banking industry affect all areas of lending - truthfully a credit card is a loan.  Similar to the improvement in the mortgage market, new credit card regulations have been created to prevent the predatory attacks within the banking industry.

 To name a few:

• You will have to "opt in" to over limit transaction on your debit or credit card.  Yes, you may get declined at the register or the pump. 
• You will have to receive a separate notification changing the terms to your account.
• Interest rates cannot be increased unless you blatantly do not pay ( 60 days+ late)

(More examples Check out this article  Stop Buying Crap )

 I agree it does need help - The bill will help protect the public from banks that randomly change the terms of written agreement to meet there own financial goals.  No other industry allows you change the terms to a written agreement or contract at will.

 In May the card act was passed and instead of making the changes, the credit card companies spent the past few months raising interest rates and adding new fees.  If purpose of the regulations was to help protect the public why were the changes not IMMEDIATE. Basically, Congress told the crooks we will raid you in spring so start behaving now. Over all I think these changes will be for the best, I am just concerned about HOW & WHEN it will be implemented.

This slack action is costing me money I do not have.  My minimum before these improvements totaled $275/mo now the total over $500.  This is money I could have used to build by business or pay down the balance. I know I am not alone; many Americans have lived beyond their means for too long.  I wonder how many people will just choose to be cash only, or give up because they cannot afford to make even the minimum payment. 

I have not made a credit card purchase in 18 months.  Cash & carry is tough.  As a real estate agent I am lucky - I can control my expenses more easily than some because I have no employees to pay.   These changes have caused me to grow more slowly and definitely more calculated. Other small business' may not be as lucky, without a line of credit and spiking interest rates many may be force some to shut their doors. How will these changes effect buyers, sellers and credit scores? I guess time will tell.

READ YOUR STATEMENTS THIS CAN HAPPEN TO ANYONE WITH A BALANCE.