Minimum Payments

Digby highlights the disaster this news poses to so many people:

Within the next month, Bank of America, MBNA and Citigroup will raise minimum monthly payments on their cards from 2 percent of the balance to up to 4 percent, not including interest. Other card issuers are expected to make similar changes by the end of the year.

As Digby states:

Where does the government sponsored MNBA tough-love end? The bankruptcy bill wasn't enough, apparently. They now want to drive people who are struggling in a weak labor market into bankruptcy by abruptly doubling their monthly credit card bills. I guess there's no use wasting time in getting people into their properly indentured forever status.

...This sounds like a good campaign issue to me. It hits home --- it's like Gray Davis doubling the car tax in California; it's an increase everybody notices. If the Bush administration is actually pushing it, the Democrats ought to staple this little GOP corporate collusion right on the foreheads of Republicans everywhere in the '06 election.

...The credit card companies get "hurt" by a slight dip in their usurious profits and the individual working stiff gets to learn a lesson in not eating.