After being able to pay a nice chunk to the smaller of the BECC's, I became aware of why I call them "Evil", other than as a joke to myself.
Our min payment on the smaller BECC has been at $140. After paying that card down to about $3200, they have DECREASED our min to $75. Almost half.
Soooo....we paid it down less than $1000, less than 25%...and they chop our min payment in half.
And I double checked - thought maybe that last payment we sent them posted after the month closed and they just took that amount out of our min payment...nope. That isn't what happened.
They just seem to have randomly dropped our min payment.
I soooo want them gone. I swear, we've learned our lesson on the cc's. Once they are paid off, we're not closing them, but we are locking them away. I mentioned before that we follow Dave Ramsey, but aren't 100% with him on the "no credit ever again" idea.
Although we did talk about how cool it would have been to go in with cash to buy our car. I think if we had come in with $8000 cash, we could have gotten our car for that (instead of the $10,000 we financed). Wouldn't that have been sweet?
Anyway. Stupid credit cards. I'll be glad when they're gone.
Oh, and the other one? The bigger BECC? They've raised our min. We've kept them at mins while we pay the smaller one first...and they raised our min by $30 a month. Go figure.
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4 comments:
Oh it really is frustrating! You can easily see how the cc's can make out very well if the consumer isn't paying close attention! Luckily we are paying attention (now!). :)
Hiya. I post over at LLNOE but am not sure how I came to your blog, but I remembered seeing something about this there. Just wanted to say "hiya."
What I'm doing regarding dwindling minimums is to keep it at the higher "minimum" even when they lower it because I've already budgeted it that way - unless it will make a big difference to the snowball.
They lower the minimum because the balance went down and you are only "required" to pay between 1.5-2.5% of the balance, depending on the card terms. Yes, they do hope that you will then only pay the new lower minimum balance. Whether it is right or wrong.... they are a business out to make money.... that being said, just continue to pay the higher minimum that you have already budgeted for to watch that balance go down even faster!
I have no idea why your other card went up 30 dollars. That does not seem to make much sense, unless the upped the required percent you have to pay on the balance. If that is the case, look at your interest rate and make sure that has not increased as well. They usually go hand in hand.
Congratulations on paying off a huge chunk!!!!! It is encouraging to see progress being made!
They'll be sending you little love notes soon letting you know they increased your available credit line too.
I get random bills that say I owe like $13 instead of $175 minimum. I used to LOVE those months -- now I just laugh!
Congrats on the huge leaps and bounds you are making with that card!
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