Know The Credit Card Trap
The charge card organizations are savvy. Extremely savvy. A significant number of them are continually on the chase to suffocate the greatest number of individuals as they can, forever. What’s more, they regularly succeed. They utilize strategies that would put a disapprove of the fallen angel himself!
It Starts Out Innocent…
O.K. You get an offer via the post office that says “you have been pre-endorsed for a $1,000 credit restrain!”. You join. You don’t considerably try to peruse the fine print, you basically look at it. All things considered, you should be a lawyer or a fund prodigy to comprehend it.
“You’re Already Fighting A Losing Battle”
What you most likely didn’t understand is that the technique for figuring interest is entirely unexpected than how a home loan or car advance is computed. The enthusiasm for home or automobile credits is charged just on the standard sum that you obtain. Then again, Mastercard organizations charge enthusiasm on the sum that you get in addition to extra enthusiasm on already paid intrigue. They assault you with intrigue!
This is the main reason that if you are making minimum payments, your credit card balances are reduced only a few dollars each month. Sometimes the balance is higher than last month.
“Creditors Meditate In Dark Rooms All Day Thinking Of New Fees To Charge Their Customers”
Well, it seems that way. They have creative names for the many different types of fees they charge.
Anyways, as time passes, you start to notice that you have been charged for fees that you didn’t even know existed-activation fee, credit protection fee, transfer fee, over-the-limit fee, non-usage fee, credit offer refusal fee, etc.
After several months you notice that your balance hasn’t decreased much. It may still be the same, or worse, higher than it was the previous month.
It Get’s Worse…
The fact is, an increasingly number of creditors are trying to squeeze out as much money as possible from you. For instance, several years ago fees were an average of $15. Now, they range from $20-$90!
Credit card companies have powerful lobbyists on their side. They pay millions every year so that the laws are favored on their side. However, when there is a public outcry that the credit card companies are getting too greedy, the government steps in and creates new legislation.
Unfortunately, government intervention often fails. The credit card companies simply find new schemes to compensate for their loss, e.g. raising interest rates, and adding new fees.
And that’s not all. Another scam creditors employ is trapping their customers into making late payments. They accomplish this by changing the payment due date without notifying them. Or, they will hold your payment for a few days without posting it so they can charge a hefty late fee.
Last, the vast majority of credit card companies are now raising their rates as much as 29.99%. Sometimes they do this for no apparent reason. Sometimes they raise the rate because a debtor was late on a payment, and not necessarily late with the creditor that raised the rate. The late payment could have been with creditor “B”, “C”, or “D”!
“Now You Need A Rope To Climb Out Of The Hole That You Dug Yourself In”
Fast forward the clock. Today, let’s assume that you owe $30,000 to your creditors. Let’s further assume that your average interest rate is 18% and your minimum payment is $750. In order to pay-off this amount, it would take about 33 years! And that’s if you never have another late payment, stop charging additional debt, or the creditors never raise your interest rates or stop adding fees.
But that’s highly unlikely to happen. The unwritten motto of the credit card companies is: “let’s drown every American we can into debt for the rest of their lives!”
But You Have The Power To Fight Back
The only way to get the creditors to change their ways is when Americans fight back by eliminating their credit card debt. The choice is yours.