for folk who carry a balance on their credit cards...

[lagilman]

from the New York Times:

"Last year Citigroup made a promise to millions of people who flex its credit cards: “A deal is a deal.” The slogan was used to trumpet an announcement that the financial giant would no longer reserve the right to raise interest rates on cards at any time, for any reason.

But Citigroup’s deal is only a deal until it isn’t. The company is quietly reconsidering its pledge as it confronts a host of financial troubles, according to Citigroup executives. A decision could come this week. Samuel Wang, a spokesman for Citigroup, declined to comment."

http://www.nytimes.com/2008/06/25/business/media/25adco.html?_r=1&dlbk&oref=slogin

The trick, of course, is to not carry a balance from month to month, and therefore not get hit with interest rates. But if you are... you might want to pay attention. I doubt Citi is the only company contemplating rate hikes to raise cash -- at your expense (literally!).

Comments

[fakefrenchie.livejournal.com]

The trick to using credit cards is to pay it off every month. Of course, not everyone can do that. My brother for example. But that is a whole nuther kettle of fish.

[lagilman]

Oh yah, I am a longtime proponent of "credit cards are a 4-week loan" theory and if I can't afford to pay it off at the end of that loan, I can't afford to buy it (emergencies exempted, natch). But some folk aren't able to manage it, every month, and it's amazing how fast it can go from a convenience to a monkey on your back....