Excerpt from: Ski Resort Newsroom
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| June 29, 2009 | | Remember to pay your mortgage first | Things are getting somewhat depressing in the world of credit cards and personal finance. Many Chase credit card account holders (especially those with low interest rates) are finding that their minimum payments have been increased. This is because Chase is adjusting how it figures minimum payments on credit card accounts. Instead of charging 2% of the balance as a minimum, Chase is now charging 5% of the balance. This means that some customers will have to pay $200 or $300 or more per month as a minimum.
This move represents Chase's move to
- Encourage higher payments (and faster payoffs) to limit risk.
- Force those with lower interest rates to agree to higher rates by offering them the chance to keep lower minimums.
- Make more money and change terms at will before February 2010, when new credit card regulations take place.
However, even if this means a financial hardship for you, it is important to remember the cardinal rule of repaying debt: Make payments on secured debt first. If you cannot afford your mortgage payment and your new credit card minimum, pay the mortgage first. Then you can worry about unsecured debt like credit cards.
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