Interest rates increase to nearly 35% on Macy's store CCs

[nidena]

Article on wthr.com

"...Rossman shared examples of other retailers with APR's over 30%, including Petco and Exxon Mobil.
The average of all credit cards is just over 20%."

[resolution]

We can thank the Supreme Court for gutting all the usury laws when they allowed credit cards to follow the laws of the state where they are incorporated, rather than the laws where the customer resides. It looks like my Citi double cash card is over 19% now, which is shockingly high compared to what banks pay us in interest.

[wvugurl26]

I no longer have a Macy's card I guess? It was a combo store card/Amex. I got a letter a month or so ago that said the store line was being closed off the card. The reason it gave was a single card can no longer access two accounts. I'm unsure if it becomes a regular Amex?

[TheOtherMe]

I rarely shop at Kohl's so I have not looked at the interest rate recently.  Last time I did, it was 30.99%.

My lowest card rate is 14.25% and that's at the credit union with no rewards, etc.  

The others run from 18.75 to 26.44%.  

I am not paying it so I do everything possible to not spend more than I can pay in a month.  

[schildi]

I have never paid any interest on a credit card, that's the solution to this.
Don't know what the interest rates are on my cards, except the one at 0% for 18 months, which I am actually using and not paying off.

[Opti]

Jul 11, 2024 12:04:37 GMT -5 nidena said:

Article on wthr.com

"...Rossman shared examples of other retailers with APR's over 30%, including Petco and Exxon Mobil.
The average of all credit cards is just over 20%."

TY for posting this, and it looks like the article has the meat of it for store CCs.


"Right now, the average credit card late fee is $32 and the CFPB is trying to bring it down to $8. They were actually supposed to do it in May, and then a federal judge struck that down temporarily, and it's still kind of winding its way through the courts. Store credit cards rely on late fees more than your general purpose Amex or Capital One card, so a lot of store card issuers have begun pulling other levers to compensate for what may be a drop in late fee revenue," said Rossman.

[Opti]

To give you an idea of how slowly paying off some bills with high interest rates can take, CBS 8 asked Rossman to calculate how long it would take to pay off a $1,000 Macy's bill under the new 34.49% rate by only making minimum payments.



The answer is as shocking as the APR itself.



"That would keep somebody in debt for 58 months. So, almost five years. The total interest expense would be $1,047. So, in other words, you've more than doubled your initial outlay,” said Rossman.

[minnesotapaintlady]

Anyone that carries a balance on a 35% Macy's card is crazy (or more than likely clueless as to what the card even charges).  There is absolutely nothing at Macy's that is essential that would warrant doing this.

[Opti]

Jul 11, 2024 17:48:28 GMT -5 minnesotapaintlady said:

Anyone that carries a balance on a 35% Macy's card is crazy (or more than likely clueless as to what the card even charges).  There is absolutely nothing at Macy's that is essential that would warrant doing this.

Disagree. What if I need clothes for an interview and it took over 6 months for my UE $$ to show up?  I know how store CCs work. It buys me one month of float. Some of us have to do things because really sucky things happen in a rollercoaster life.

[minnesotapaintlady]

Jul 11, 2024 18:46:08 GMT -5 Opti said:

Jul 11, 2024 17:48:28 GMT -5 minnesotapaintlady said:

Anyone that carries a balance on a 35% Macy's card is crazy (or more than likely clueless as to what the card even charges).  There is absolutely nothing at Macy's that is essential that would warrant doing this.

Disagree. What if I need clothes for an interview and it took over 6 months for my UE $$ to show up?  I know how store CCs work. It buys me one month of float. Some of us have to do things because really sucky things happen in a rollercoaster life.

Well, using the one month float is not paying interest.

But, you don't NEED clothes from Macy's.  There are plenty of other places that sell clothes...including thrift stores...which is what I'd hit if I had no income for 6 months.

[Opti]

Jul 11, 2024 19:13:03 GMT -5 minnesotapaintlady said:

Jul 11, 2024 18:46:08 GMT -5 Opti said:

Disagree. What if I need clothes for an interview and it took over 6 months for my UE $$ to show up?  I know how store CCs work. It buys me one month of float. Some of us have to do things because really sucky things happen in a rollercoaster life.

Well, using the one month float is not paying interest.

But, you don't NEED clothes from Macy's.  There are plenty of other places that sell clothes...including thrift stores...which is what I'd hit if I had no income for 6 months.

If you work for Macy's and the thrift store isn't on the bus stop, what then?


I've lived this life MPL, I did have a car then, but I did talk to many associates to figure out why they did what they did. A good portion of the Macy's work force comes in by bus. When I go to work, I know there are some women who work retail simply based on the prefered clear purses, etc. they carry. (The bus line I use, ends near a Macy's. It actually stops closer to a high end dept store and the movie theatre.

[minnesotapaintlady]

Jul 11, 2024 19:27:02 GMT -5 Opti said:

Jul 11, 2024 19:13:03 GMT -5 minnesotapaintlady said:

Well, using the one month float is not paying interest.

But, you don't NEED clothes from Macy's.  There are plenty of other places that sell clothes...including thrift stores...which is what I'd hit if I had no income for 6 months.

If you work for Macy's and the thrift store isn't on the bus stop, what then?


I've lived this life MPL, I did have a car then, but I did talk to many associates to figure out why they did what they did. A good portion of the Macy's work force comes in by bus. When I go to work, I know there are some women who work retail simply based on the prefered clear purses, etc. they carry. (The bus line I use, ends near a Macy's. It actually stops closer to a high end dept store and the movie theatre.

Well, if I work at Macy's I'm also not unemployed. 

I guess if I was broke and there was absolutely no way I could get anywhere else. No friends, no family, busses that only went to Macy's and I worked there.  I would buy something off the clearance rack with my 20% discount and pay cash or use the card and pay it off during the grace period if that got me a better discount.  

But, I also have a hard time believing someone working at Macy's shows up to work everyday in clothes that couldn't be worn to a job interview.  

[nidena]

Jul 11, 2024 19:48:29 GMT -5 minnesotapaintlady said:

Jul 11, 2024 19:27:02 GMT -5 Opti said:

If you work for Macy's and the thrift store isn't on the bus stop, what then?


I've lived this life MPL, I did have a car then, but I did talk to many associates to figure out why they did what they did. A good portion of the Macy's work force comes in by bus. When I go to work, I know there are some women who work retail simply based on the prefered clear purses, etc. they carry. (The bus line I use, ends near a Macy's. It actually stops closer to a high end dept store and the movie theatre.

Well, if I work at Macy's I'm also not unemployed. 

I guess if I was broke and there was absolutely no way I could get anywhere else. No friends, no family, busses that only went to Macy's and I worked there.  I would buy something off the clearance rack with my 20% discount and pay cash or use the card and pay it off during the grace period if that got me a better discount.  

But, I also have a hard time believing someone working at Macy's shows up to work everyday in clothes that couldn't be worn to a job interview.  

Most associates that I've seen at the Macy's where I shop wear very casual clothes: athleisure or dark jeans and a shirt.  Macy's in many places has become the new JCP.  

[busymom]

DH & I are at a point in our lives where we are blessed, and able to pay off our credit cards each month.  Some of you are old enough to remember when we could take a tax deduction on credit card interest (that deduction is long gone), which was the only benefit we got from carrying a balance, but because DH & I worked at a number of companies that went out of business, or closed work locations, we had to use credit cards to keep our kids fed, and in clothes, as they outgrew their stuff fairly fast.  Yes, I shopped the clearance racks, but that wasn't quite enough.  So, I feel for the folks who cannot pay in full each month, who carry a balance, and now are getting gouged by the credit card companies.  I suspect we're going to see a lot more bankruptcies.  

[andi9899]

Jul 11, 2024 19:48:29 GMT -5 minnesotapaintlady said:

Jul 11, 2024 19:27:02 GMT -5 Opti said:

If you work for Macy's and the thrift store isn't on the bus stop, what then?


I've lived this life MPL, I did have a car then, but I did talk to many associates to figure out why they did what they did. A good portion of the Macy's work force comes in by bus. When I go to work, I know there are some women who work retail simply based on the prefered clear purses, etc. they carry. (The bus line I use, ends near a Macy's. It actually stops closer to a high end dept store and the movie theatre.

Well, if I work at Macy's I'm also not unemployed. 

I guess if I was broke and there was absolutely no way I could get anywhere else. No friends, no family, busses that only went to Macy's and I worked there.  I would buy something off the clearance rack with my 20% discount and pay cash or use the card and pay it off during the grace period if that got me a better discount.  

But, I also have a hard time believing someone working at Macy's shows up to work everyday in clothes that couldn't be worn to a job interview.  

Right! With TJ Maxx, Ross, Walmart, etc, you can get nice clothes cheap. They obviously won't be designer, but you can look put together on a budget. You can also find designer clothes at consignment stores way cheaper. Not to mention deals on Amazon. Nobody needs a Macy's card. I have designer clothes and I have Walmart clothes. I wear a mix of them to my corporate job when I visit the office.

[andi9899]

35% interest on a CC is insanity! My lowest CC is 12% through one of my credit unions. I actually only have that CC and the required $1 in a savings account there because the interest rate is so low. That and I've had the card for so many years it's my oldest credit line.

My highest interest rate is my Sam's Club CC which is 20+% because it's a store CC.You best believe that gets paid in full every month.

[Opti]

Well, if I work at Macy's I'm also not unemployed.

Correct. What few people realize is most social benefits go to those who are considered the working poor. Macy's FT sale's associate is not a living wage in NJ. It is also not 40 hrs. a week. 

The training Macy's videos I had to watch included how to shop your Macy's for work clothes. Back then things were more complex. You were to dress to fit in with whatever department you were assigned to, and the all black clothes had not happened yet.  As a sales associate I watched the same shirt for example, be 65% off for a few days, go to 80% off (major clearance level) and then to 35% if it still had not sold and that line was considered current stock. 

Since Covid many things have changed, so some of what I learned no longer applies. However, the cash flowing that all retail businesses do is eternal. They do sales or raise prices based on projected cash flow for the week or month. 

[Opti]

Jul 11, 2024 22:06:52 GMT -5 andi9899 said:

Jul 11, 2024 19:48:29 GMT -5 minnesotapaintlady said:

Well, if I work at Macy's I'm also not unemployed. 

I guess if I was broke and there was absolutely no way I could get anywhere else. No friends, no family, busses that only went to Macy's and I worked there.  I would buy something off the clearance rack with my 20% discount and pay cash or use the card and pay it off during the grace period if that got me a better discount.  

But, I also have a hard time believing someone working at Macy's shows up to work everyday in clothes that couldn't be worn to a job interview.  

Right! With TJ Maxx, Ross, Walmart, etc, you can get nice clothes cheap. They obviously won't be designer, but you can look put together on a budget. You can also find designer clothes at consignment stores way cheaper. Not to mention deals on Amazon. Nobody needs a Macy's card. I have designer clothes and I have Walmart clothes. I wear a mix of them to my corporate job when I visit the office.

Did I miss something?

Is there an invisible person who said, literally, you need a Macy's card?

[andi9899]

Jul 11, 2024 18:46:08 GMT -5 Opti said:

Jul 11, 2024 17:48:28 GMT -5 minnesotapaintlady said:

Anyone that carries a balance on a 35% Macy's card is crazy (or more than likely clueless as to what the card even charges).  There is absolutely nothing at Macy's that is essential that would warrant doing this.

Disagree. What if I need clothes for an interview and it took over 6 months for my UE $$ to show up?  I know how store CCs work. It buys me one month of float. Some of us have to do things because really sucky things happen in a rollercoaster life.

Dis you?

[NomoreDramaQ1015]

Jul 11, 2024 15:23:40 GMT -5 schildi said:

I have never paid any interest on a credit card, that's the solution to this.
Don't know what the interest rates are on my cards, except the one at 0% for 18 months, which I am actually using and not paying off.

TBF though shit happens.  All the credit cards are getting up there in interest rates.  It doesn't take a whole lot to tip someone over.   While I know YM preaches personal responsibility and I agree to an extent I don't agree with the idea that credit cards should be able to charge whatever interest they want and blame to on lack of self control if someone gets screwed.

These types of things aren't designed to take advantage of YM-ers.  They are designed to take advantage of the poorest of the poor.

You can only pull yourself up by your bootstraps if you have straps.  Some people don't even have shoes.  Credit Cards and banks should not be allowed to prey on people in the name of profit.  I'm sure the owner of Macy's cards wouldn't be hurting or facing homelessness if the interest rates on the card were capped at something lower than 35%

ETA:  I think it's on purpose that they pick stories to highlight like a Macy's card.  We can argue all day long about how nobody needs a store card and it's all that person's fault end of story.  Meanwhile the real issue. . . that credit card companies are charging usury rates gets buried.

Like the McDonald's coffee case, they made a huge sensation of she opened it in her lap ignoring the coffee was heated to beyond required temperatures for safety and that there had already been numerous complaints made about the same issue.

[The Walk of the Penguin Mich]

I let my Macy’s card go a long time ago.  Other than MC, Visa and AmEx, I think the only other cards I have is Kohl’s and Talbots.  It’s been so long since I’ve used Kohl’s, I doubt it’s still current.  

In my younger days, I did play the credit card games for the rewards.  The rewards are not so much worth it anymore.  Last month, TD realized he forgot to pack a tie to wear to my niece’s wedding.  We had to make a quick trip to Kohl’s.  My sister said ‘let me get this, I have got a 30% off coupon’.  To this day, we have no idea what the coupon was good for, but not ties.  I don’t have the inclination to play these stupid games, so don’t.  

I keep Talbots around as I get a $25 coupon off on my birthday, and I can order from there and be 95% sure that whatever I order, fits.  They don’t play stupid games with sizes.

[jerseygirl]

Stopped going to Macy’s. Annoyed at all the coupons given to you but have the entire back filled with Brands that can’t be used with the coupon

[nidena]

Target has nearly the same rate on its CC--29.95--so let's look at it from that perspective since they DO sell actual necessities.

The employee discount is only 10%.  That covers tax in most cases.  It doesn't actually make the item less expensive.

There is an additional "discount" for using the CC

Target pays their *visible* employees an average of $16/hr.  FT is ~35 hr/wk.   

After rent, transportation, utilities, etc there isn't much cash left in the bank account.  The employee is now compelled to use their CC to buy groceries and everything else for their household.

Sure, they could shop somewhere else but they won't even get tax covered if they shop elsewhere.

The combination of low wages and corporate greed will keep folx in a cycle of poverty damn near forever.

[minnesotapaintlady]

I have a stack of credit cards at least 2 inches tall in a drawer, but only two are strict store cards.  Amazon and Target.  Both just for the 5% back, and I actually rarely even use the Target one as I don't spend a lot there.  When I do go, the purchases are typically under $50 and I'd rather just use my 2% on everything card and let it build up then get 5% immediate.

[minnesotapaintlady]

Jul 12, 2024 9:16:59 GMT -5 nidena said:

Target has nearly the same rate on its CC--29.95--so let's look at it from that perspective since they DO sell actual necessities.

The employee discount is only 10%.  That covers tax in most cases.  It doesn't actually make the item less expensive.

There is an additional "discount" for using the CC

Target pays their *visible* employees an average of $16/hr.  FT is ~35 hr/wk.   

After rent, transportation, utilities, etc there isn't much cash left in the bank account.  The employee is now compelled to use their CC to buy groceries and everything else for their household.

Sure, they could shop somewhere else but they won't even get tax covered if they shop elsewhere.

The combination of low wages and corporate greed will keep folx in a cycle of poverty damn near forever.

That is not sustainable and is what will keep them in poverty forever.  What did people do before credit cards?

[resolution]

Jul 12, 2024 9:25:46 GMT -5 minnesotapaintlady said:

Jul 12, 2024 9:16:59 GMT -5 nidena said:

Target has nearly the same rate on its CC--29.95--so let's look at it from that perspective since they DO sell actual necessities.

The employee discount is only 10%.  That covers tax in most cases.  It doesn't actually make the item less expensive.

There is an additional "discount" for using the CC

Target pays their *visible* employees an average of $16/hr.  FT is ~35 hr/wk.   

After rent, transportation, utilities, etc there isn't much cash left in the bank account.  The employee is now compelled to use their CC to buy groceries and everything else for their household.

Sure, they could shop somewhere else but they won't even get tax covered if they shop elsewhere.

The combination of low wages and corporate greed will keep folx in a cycle of poverty damn near forever.

That is not sustainable and is what will keep them in poverty forever.  What did people do before credit cards?

When my dad was growing up, his mom made a big pot of barley soup every Monday and they ate it all week. On Sundays they got chicken. When his shoe soles got worn through, he would cut out cardboard and put it as an insert in his shoe to cover the hole in the bottom. When he was in elementary school, he got a job in a milk truck, he would ride in the back and when the driver stopped, he would grab the bottles of milk and set them in front of people's doors. He gave all the money from the job to his mom to help pay for groceries.

[nidena]

Jul 12, 2024 9:25:46 GMT -5 minnesotapaintlady said:

Jul 12, 2024 9:16:59 GMT -5 nidena said:

Target has nearly the same rate on its CC--29.95--so let's look at it from that perspective since they DO sell actual necessities.

The employee discount is only 10%.  That covers tax in most cases.  It doesn't actually make the item less expensive.

There is an additional "discount" for using the CC

Target pays their *visible* employees an average of $16/hr.  FT is ~35 hr/wk.   

After rent, transportation, utilities, etc there isn't much cash left in the bank account.  The employee is now compelled to use their CC to buy groceries and everything else for their household.

Sure, they could shop somewhere else but they won't even get tax covered if they shop elsewhere.

The combination of low wages and corporate greed will keep folx in a cycle of poverty damn near forever.

That is not sustainable and is what will keep them in poverty forever.  What did people do before credit cards?

They stayed in miserable marriages so that they had the extra income because single mothers would not have been able to get them.

[Opti]

Jul 12, 2024 9:16:59 GMT -5 nidena said:

Target has nearly the same rate on its CC--29.95--so let's look at it from that perspective since they DO sell actual necessities.

The employee discount is only 10%.  That covers tax in most cases.  It doesn't actually make the item less expensive.

There is an additional "discount" for using the CC

Target pays their *visible* employees an average of $16/hr.  FT is ~35 hr/wk.   

After rent, transportation, utilities, etc there isn't much cash left in the bank account.  The employee is now compelled to use their CC to buy groceries and everything else for their household.

Sure, they could shop somewhere else but they won't even get tax covered if they shop elsewhere.

The combination of low wages and corporate greed will keep folx in a cycle of poverty damn near forever.

Reluctantly agree. Corporate America is the power almost more so than our federal government. And I will just say this about the Fed and rate cuts. Economic theory is still stuck back in the fantasy land that demand/supply or the usual guns/butter thing supposedly meant something. But during Covid the supply chain itself became a huge bottleneck. 

The Fed  only has a hammer, and when enough poor people are poorer and totally without hope ... they cut interest rates. MO.

[Opti]

Jul 12, 2024 8:03:01 GMT -5 andi9899 said:

Jul 11, 2024 18:46:08 GMT -5 Opti said:

Disagree. What if I need clothes for an interview and it took over 6 months for my UE $$ to show up?  I know how store CCs work. It buys me one month of float. Some of us have to do things because really sucky things happen in a rollercoaster life.

Dis you?

[daisylu]

Not going to get into the CC debate, but my DS(22YO) makes $16/hour in a retail position, averaging @36 hours/week. He shares a 2 bedroom apartment with his sister that is about 2 miles from his work and about 4 miles from her work. Largest grocery store is within 1 mile. The only utility covered in his rent is water. He has zero debt and savings in the 5 digits. The savings only occurred over the last 2 years, when he first moved out on his own. He may not live in the best part of town, but he is also not living in the worst part of town. And this is in a HCOLA area.

His car was a hand me down from DH and I but he keeps up with the maintenance and drives so little that there is no reason that it should not last him a very long time.

It may not be comfortable, but it can be done. I used to harp on him about getting a second part time job, but he is doing just fine. 

Anyone can find a reason to be in CC debt but it is more more difficult to choose not to be in CC debt, IMO.