Watch out: There's danger in your wallet (CNN) {20% rate hikes!}

[eppur_se_muova]

By Clark Howard

ATLANTA, Georgia (CNN) -- I've been getting many calls from listeners who are outraged or perplexed by the actions of their credit card issuer.

The issuing banks are raising interest rates by 20 percent or more -- even if the individual has good credit, has never been late on a payment or hasn't even had any change in their credit standing.

This is happening across all income levels. It's even affecting successful business owners and moderate to wealthy individuals. Fortune magazine recently spotlighted one small business owner who had a card that went from nearly 8 percent to 26 percent, even though nothing changed with his finances or payment history.

Bank of America, Citibank and Capital One are among the big issuers arbitrarily jacking up rates in the face of what they often cite as a "continually changing business environment." In fact, the Federal Reserve reports 37 percent of banks have increased their interest rates.

The reality is that the banks are fearful of the high rate of credit card default, and they know they've got you if you're among the 70 percent of Americans who carry a month-to-month balance.
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more: http://www.cnn.com/2009/LIVING/personal/02/13/clark.howard.credit.cards/index.html

[prolesunited]

1. Congress needs to put an end to this now.

We can't wait until 2010 to implement the reforms they passed.

[MadHound]

2. Not in my wallet

I've never had a credit card, never felt the need for one. In fact I think that my life has been better because I haven't had one.

I recommend that everybody pay off their cards and cut them up. Don't let your life be data based and controlled by some corporation, especially one that we're bailing out.

[Birthmark]

8. Sound practice and sound advice.

I've been credit card free for six or seven years. Been telling people that this collapse was coming...with about the results you'd expect. Sucks to be them, I guess.

[SammyWinstonJack]

3. ROBBERS!

:grr:

[lonestarnot]

4. Thieves!

[HereSince1628]

5. u.s.u.r.i.o.u.s.

Adjective
S: (adj) exorbitant, extortionate, outrageous, steep, unconscionable, usurious (greatly exceeding bounds of reason or moderation) "exorbitant rent"; "extortionate prices"; "usurious interest rate"

[Oilwellian]

7. A perfect word for it n/t

[Jackpine Radical]

6. I run my private practice on a check card (easy bokkeeping),

and keep our personal cards paid up. They are occasionally handy, and amount to a few days of interest-free loan as long as you keep them paid off & make sure they have no annual fee.

[hobbit709]

9. Cranking up the interest

is guaranteed to get MORE people saying fuck it and stop paying on them. My wife and I have 6 cards between us with about $800 total on them. Screw them if they jack us. There's nothing they can do about unsecured debt in this state.