May 30, 2011
Late one day on a credit card bill? It’s going to cost a lot more than that $35 late fee. As of June 25, Bank of America will resume a penalty interest rate of 29.99% on future purchases.
This means you will owe a third more on your purchases. If you owe $4,000 on a credit card with a 15% interest rate and made only the minimum payment each month, it would take you 22 years plus $5,580 in interest to pay off that balance.
At 30%, the Fed says you would never pay it off if you made only the minimum payments!
It seems the new credit card act protects consumers from snakes, spiders, bumblebees – everything but usurious banks!