Debt management problems in a large part can be traced to the misuse of credit cards. Instead of using credit cards as the debt management tool they are many people fail to recognize their own limits when it comes to bill paying time. Solve a large part of your debt management problem by using your credit cards sensibly. If you are carrying a credit card debt adjust your budget to allow you to pay off that very high interest credit card debt.
Fifty million American credit card holders are losing the battle of debt management by carrying a balance on their cards. People with at least one card carry an oppressive credit card liability of an astounding $8,367. That is up from a debt load of $3,332 just ten years ago.
High priced and impulsive purchases at the Malls of America are crumbling the foundations of debt management principles and bringing further pressure on family harmony with seventy one percent of some debt counseling services reporting unhappiness the main result of excessive debt.
Beware of the following credit card company tricks.
Don't fall for the ease of accumulating and carrying credit card debts while paying only small minimum payments set up buy these plastic cash companies. These minimum payments are set up to keep you in debt and to take the maximum amount of interest dollars out of your pocket. Just because the credit card company sets a nice low monthly payment doesn't mean you should pay that small payment. The only people happy with those small payments are the people charging you the interest on the unpaid balance.
Companies that supply plastic money regularly look at your credit report, keeping an eye open for late payments on your other cards. Even if you don't make late payments to one of your plastic cash holders but do pay late to others, the company you pay on time will have an excuse to raise your interest rate by an enormous amount.
Beware of the Fixed Rate Scam. While a number of plastic currency companies offer the deceptive fixed interest rate come on, all they are really offering is a 15 day warning in writing that they are going to increase your interest rate. Always be aware to the interest rate being charged to you, checking each statement to make sure it hasn't changed.
Credit card corporations are becoming very picky about payment times. Not only do they set up a due date for payments but they also set up a due hour. For instance if your credit card company has a date and time for payment set as Dec. 1, 1:00 pm and your payment arrives at 1:05 pm the company could and probably will assess you a late fee charge of up to $35 and worse yet they then have the legal right to increase your interest rate significantly. Time is money.
The average amount of time allowed as a grace period from the time you purchase an item with a credit card to the time you start paying interest on that purchase has dropped for what used to be 30 days to less than 21 days. Some of these not so funny money cards start charging interest the minute you charge an item.
How unfriendly can you get? This vinyl money companies have their hand in your pocket at every opportunity. If you travel abroad and use your card the big companies will charge you 1% plus and inflated exchange rate, so exchange money at a bank our use traveler checks and stop paying the credit card companies while you travel.
Beware the pre-approved credit card scam. While they may be willing to give you a card in advance the odds are they will actually grant you a different card than they announced. After reviewing your credit report you may end up getting a card with a higher interest rate applied to it. As always read all the detail of any agreement especially the fine print.
To beat the credit card cash sucking machine, only use cards with the most favorable terms and never carry a balance beyond your grace period.
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