Comments on: Is the New Discover Motiva Card Encouraging Credit Card Debt?

By: Sun

Sun — Tue, 22 May 2007 05:03:25 +0000

Stingy Student: It’s true that the card doesn’t explicitly say it encourages debt, but making the Pay-on-time bonus the key selling point does sound to me that I will be rewarded if I carry a balance. If I do have to carry a balance, it will be nice to get a little interests back. But I feel in many cases, a credit card isn’t really necessary. I will be much happier if the card instead rewards me for paying off the balance in full for six consecutive months. But in the case, the card company won’t make any money, so such a reward program won’t exist.

By: Stingy Student

Stingy Student — Mon, 21 May 2007 00:18:09 +0000

I’m not sure if this card exactly encourages more debt than necessary. However, if you absolutely have to carry some debt, it doesn’t hurt that paying on time helps you out. This is probably a great card for people who were irresponsible with their finances earlier and have finally come around to managing their money better – they could realize some decent benefits.

By: dimes

dimes — Sat, 19 May 2007 18:19:31 +0000

I had a baby Visa when I was in college that gave “3% cash back on your carried balance” and the interest rate was like 11%. It was the strangest thing to me, and I believe deliberately designed to confuse the young and gullible. Luckily I didn’t fall for it, but I’m sure there are many who did.

By: Sun

Sun — Thu, 17 May 2007 20:35:20 +0000

Jonathan: While it’s true that every credit card company would love to see us paying only the minimum every month so they can collect more fees, I didn’t any card before make this the key selling point. That I think is quite unique.

By: Jonathan

Jonathan — Thu, 17 May 2007 19:39:33 +0000

Uhm, don’t all credit cards “encourage credit card debt”? You mean, perhaps, that this particular card encourages you to carry high-interest debt. Well, obviously, why do *all* credit cards offer a minimum payment plan each month, instead of requiring the full balance to be repaid? Because they are encouraging you to carry credit card debt. Nothing new here.