Interest Rates?

[crazytimes]

I just realized that the federal interest rates are tied to credit card rates! My question is...I looked at a graph or interest rates over time and they used to be VERY high! Over 7% I think.

How in the WORLD did people pay their CC bills then?!? Woudldn't the interest rates have just about killed them? I know my rate is 13.99% - I can't imagine if the federal interest rate were much higher!

[Twinplets]

Back when I first got my cards, I think CC rates were around 18.99%. I was able to pay the bills by only charging what I could afford to pay off in a month, and by not carrying a balance I had no interest charges, so it didn't really matter (to me) what the rate was.

[prism68]

Originally Posted by Twinplets

Back when I first got my cards, I think CC rates were around 18.99%. I was able to pay the bills by only charging what I could afford to pay off in a month, and by not carrying a balance I had no interest charges, so it didn't really matter (to me) what the rate was.

My first one had like a 20.99% rate; yikes!
I am sure that contributed to the increase in bankruptcies- people just couldn't get out from under when they didn't pay off monthly. The minimum payments barely covered the interest.

[crazytimes]

Yep if you pay it off each month it's no big deal...and that's what I did for the first 6 months...then it became the lure of the credit monster...LOL!

[Twinplets]

Originally Posted by crazytimes

Yep if you pay it off each month it's no big deal...and that's what I did for the first 6 months...then it became the lure of the credit monster...LOL!

Figure out the "true" cost of everything you buy by including the interest and finance charges, and it might be easier to tame the beast, so to speak.

[crazytimes]

Oh believe me I gave my parents my card! But I wrote my number down...finally I ripped it up and burned it, so I have NO access to a credit card. I just had to say no. I cut it up a year ago...then went online the next and ordered a replacement! Believe me I am the opposite of Citibank's worst nightmare...