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I got my Bank of America bill yesterday and noted that the minimum payment had dropped substantially. I called to inquire about it and the friendly person told me that since some people aren't comfortable with the usual 2.2% (I think that was the amount) they've adopted a new policy that simply adds $10.00 to the interest charge.

I wonder how many poor souls will get stung by this?

Prof
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I called to inquire about it and the friendly person told me that since some people aren't comfortable with the usual 2.2% (I think that was the amount) they've adopted a new policy that simply adds $10.00 to the interest charge.



What is the $10 fee for and will it be added every billing period or what?


I noticed the drop in minimum required too. Then when someone else posted later in the day that there were errors in some 14,000 statements stating no payment was required...when there actually was a minimum required...I called to double check.

The guy told me they were lowering minimim requirements from 2.2% to 1%. He didn't mention any additional charges. May be calling them up again for more info and/or going back to my previous payment amount.
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I took that as, you pay the interest for the month, plus $10 for principal, not a $10 fee.

laura
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I don't think it's an added fee. It used to be that the minimum payment on your account was 2.2% of the bill. they changed that structure to interest plus $10. What the $10 is is what you will be paying to priciple on your balance.

herb
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I'm pretty glad for the change, myself. My BoA card is my lowest interest card right now. The lower minimum (after calling to confirm that it was indeed the correctly stated minimum) lets me throw more snowball at a much higer rate card.

-Waystar
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I took that as, you pay the interest for the month, plus $10 for principal, not a $10 fee.

Correct. Sorry I wasn't clear.

Prof
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I guess I will have to figure out "their minimum" and "my minimum" (what will definitely make the balance go down a little). It probably means more money for my MBNA Visa card and for the power company (Boyfriend was way behind on the gas & electric when I moved in, and we're chipping away at it like it was another credit card balance).

- karen
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I took that as, you pay the interest for the month, plus $10 for principal, not a $10 fee.


Thanks. Went back and read it again. That is what was posted, just didn't click the first time. duh.


I'll be doing the same as Waystar. My BofA is locked in at 8.9% while Discover is at 16.9% and MBNA is 14.9%. I'm taking them up on the lower minimum to toss the extra $80 at the higher rate cards.
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I wonder how many poor souls will get stung by this?

I'm glad to see that those who posted are using this lower minimum payment to their advantage and are paying off other credit cards faster, but what about all those out there who won't realize that they will be paying FOREVER on the principal unless they add more to the minimum! It amazes me what lenghts credit card companies will go to keep people in debt.

Utahtea


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