5:52 am November 20, 2009, by Henry Unger
For months, consumers have been trying to shed credit card debt and right their balance sheets.
And for months, credit card issuers have been raising interest rates, reducing credit limits, closing accounts and taking other measures in advance of new legislation that goes into effect early next year.
Now comes Citibank, which is enticing credit card holders to avoid the bank’s rate hikes by — of all things — meeting a monthly spending requirement, the Associated Press reports.
Those who meet the spending minimum — in some cases $750 a month — will be able to get a rebate on their total interest charges for that month, AP reports. The rebate could cover some or all of the interest rate hike.
Does this sound like drinking your way to sobriety?
Citi raises rates, then tries to get you to spend more, so it can make more money and you can avoid the rate hike.
Is this a good way to deal with consumers in this economy?
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