I got this with my Gateway statement today. Hopefully someone can translate for me, since it seems rather confusing. "Please note that effective as of the day after the Next Closing Date indicated on this billing statement, your minimum payment due for the regular revolving credit plan purchases will be calculated using the lowest minimum payment percentage for such purchases specified in your existing card agreement. This means that it may take you longer to pay off purchases." What are they really saying? They're not raising my rate or even lowering it are they? I only have a balance of $480 left on this account (from my computer that I bought in 2001), and while I can't pay it off in entirety just yet (still a student), let me tell you that I'm forced to make a minimum payment of $84.00 every month...simple logic would tell you that my minimum payment should only be 2-3% of my balance, but that's not how Gateway deals with me now. Are they saying that perhaps they are now? So if anyone can sift through this jargon of theirs, what are they really telling me? Thanks so much.
What they are saying is taht as long as they can charge you 18%+ interest they don't care if you NEVER pay it off, as long as you just keep paying.
I believe your interpretation is correct--they are going to use the percentage specified in your contract as the minimum payment. So your minimum may be less, but of course it will take you longer to pay it off (and you'll be paying more interest, as flyingifr points out--more months at higher interest with the balance staying higher each month than with your current minimum). Try to pay what you have been paying instead of your new (lower) minimum, or pay some amount in between. Every dollar you pay extra saves interest.
