My credit card company has a new scheme to get you into debt. They informed me that since I have been so good at paying off my cards, I deserve a payment holiday and don't have to send them a minimum payment. Of course if you look at the small print, interest will still accrue during the payment holiday. It appears they are frustrated that they can't collect finance charges from me.

<<My credit card company has a new scheme to get you into debt. They informed me that since I have been so good at paying off my cards, I deserve a payment holiday and don't have to send them a minimum payment. Of course if you look at the small print, interest will still accrue during the payment holiday. It appears they are frustrated that they can't collect finance charges from me.>>

Yeah, I noticed this trick myself when I was coming to the end of a teaser rate period. They really wanted the balance to ride so that it would all carry into the higher rate. Nice try but you can't fool a Fool.

Fool on,

TMF Deal

<<My credit card company has a new scheme to get you into debt. They informed me that since I have been so good at paying off my cards, I deserve a payment holiday and don't have to send them a minimum payment. Of course if you look at the small print, interest will still accrue during the payment holiday. It appears they are frustrated that they can't collect finance charges from me.>>

Hey, PSU!

I've brought this up on the boards in the past. I get that "payment holiday" offer all the time. Don't go for it!

It's nothing more than a scam to get finance charges.

They can't fool a Fool!

Tony
...but I still am...

Off2Aruba

<<Nice try but you can't fool a Fool.>>

Hey, TMF Deal!

Great minds think alike! I hadn't read your post when I saw yours. ; )

Tony
...but I still am...

Off2Aruba

While normally I agree with you Fools, keep in mind that the 'payment holiday' you're referring to can also work FOR YOU (yes, you read that right) *IF* you are paying off a credit card with a higher interest rate. Then you can take the payment you would have normally applied to the card that is giving you the 'holiday' and apply it to the higher rate card. You're paying off the higher rate card that much faster.

Granted if you're normally only sending the minimum balance due to the 'holiday' card, the savings you gain by taking the holiday and sending it to the higher rate card may be only pennies, but when you're counting on every one of them for the long term, it can make a difference.

Cassandra

<<keep in mind that the 'payment holiday' you're referring to can also work FOR YOU (yes, you read that right) *IF* you are paying off a credit card with a higher interest rate. Then you can take the payment you
would have normally applied to the card that is giving you the 'holiday' and apply it to the higher rate card. You're paying off the higher rate card that much faster.>>

Cassandra makes a good point here. Of course, Fools who pay their balances in full wouldn't want to take any 'holiday' that would result in finance charges.

I do think that the interest rates on the 'higher' card would really have to be substantially different to make a noticeable difference. But anything to help is certainly worthwhile.

Tony
...but I still am...

Off2Aruba

<<My credit card company has a new scheme to get you into debt. They informed me that since I have been so good at paying off my cards, I deserve a payment holiday and don't have to send them a minimum payment. Of course if you look at the small print, interest will still accrue during the payment holiday. It appears they are frustrated that they can't collect finance charges from me.>>

I get that every year over Christmas time as a "present" from my credit card. The present is to them though, with more interest for the month.
George