Its 1% plus all fees and interest. For most people with a balance, it will mean an increase from the previous 2%.
This stuff was regulated? I thought the creditcard payments were whatever percentage the creditcard company wished. Mine are approximately 3% of principal.
Got this from consumeraffairs.com -- Specifically, where most credit card issuers previously required customers to pay off 2% of their outstanding balances each month, most will now require customers to pay all monthly interest and fees, plus 1% of the outstanding balance. What does that mean for monthly payments? McHenry said significant monthly increases will occur in only the most extreme cases, those in which very large credit card debt is combined with very high interest rates. Even then, he says the result is not as scary as you may think. For example, he says, imagine a person with a $10,000 credit card debt and a 19 percent annual interest rate, both higher than the average consumer is carrying. Using the two percent minimum balance calculation, this person would have a required monthly payment of approximately $203.16. Under new requirements, the monthly payment would be $258.33 ($158.33 in interest, plus $100 of the outstanding balance). This is a difference of roughly $55 â on a balance and interest rate that exceeds what the average consumer is carrying. Most credit card customers will have much smaller minimum payment increases, if any, he said.
US BANK went from 2% to 4% because of the new BK laws, forcing them to leave bad debt on their books. They need to keep their balance sheets in order for the stock holders! Michael B.