 |
It Is In Your Best Interest To Do The Math On Your Credit
Card Interest
If you begin foaming at the mouth once a month when you
receive your credit card statement, join the millions of
Americans that are foaming along with you. There is a growing
outrage at the seemingly endless journey towards eliminating the
balance on your credit card and that is due primarily to the
extravagant interest rates charged by credit card companies.
Your bank is probably touting the super rates it offers on
Certificates of Deposit or CDs. "Just deposit $5,000 for 6 months
and we'll give you a 'whopping" return of 2.83%." Yet, in
contradiction to the low rates banks are willing to pay you for
the use of their money, the interest on credit card rates can be
10 times the amount offered on a CD. Why?
The interest rates on savings accounts and CDs are based on
competition, the cost to the bank of borrowing money and the
expected return on investment to the bank for the use of your
money. Because a savings account is liquid, the bank does not
know from day to day how much of your money will be available for
its use. A CD, on the other hand, requires that you place your
money in the bank for a specific amount of time. The longer the
time period, the higher the return. That is because the bank has
greater flexibility with your money and knows exactly how long
they have to work with it.
Credit card companies have been highly successful at
convincing government regulators that they need higher interest
rates to protect themselves. As opposed to a mortgage loan or
home equity loan, credit card companies claim that they do not
have any collateral to "secure the loan" they provide to
consumers that use their credit cards. If a customer defaults or
files for bankruptcy, a credit card company had little recourse
to recover the balance due on a credit card account. But a
recently passed law now makes it much harder for individuals to
eliminate all of their credit card debt by filing personal
bankruptcy. Many think this is an unfair advantage for the highly
profitable credit card companies.
These companies can be their own worst enemy. Every day
consumers throughout the country receive an avalanche of credit
card offers that make promises of low interest and high spending
limits. Many of the recipients are already strung out with other
debts but the credit companies still offer and then provide these
high-risk individuals with the desired credit. Talk about using
gasoline to try and extinguish a fire.
The practice of paying with plastic can be seductive and
addictive and the credit card companies are well aware of it. It
is obvious that these companies are doing quite well. They use
loopholes to gradually increase interest rates and capitalize on
the deceptive "minimum monthly payment" scheme to string
consumers along. If you have an ounce of wisdom, you will pay
close attention to the credit card offers you receive and the
progress of your interest rates as you go month-to-month. It is a
quite simple matter to let things get out of control and find
yourself at the mercy of Visa and MasterCard.
Terry McDermott is the administrator of a variety of
specialized websites. Two of these websites are focused on
financial issues. They are Investing and Finance Central at
http://www.investing-and-finance.com
and Advantage Payday Loans at http://www.advantagepaydayloans.com
MORE RESOURCES:
Credit - Google News
|
|
|
RELATED ARTICLES
Harassment of People in
Debt by Creditors
HarassmentHarassment of people in debt by creditors or
their agents is a criminal offence under the Administration
of Justice Act 1970. It is often difficult to know what to
do when you feel a creditor is not dealing with your
account fairly.
Why Credit Cards are a
Bad Idea
Credit cards are just so convenient, aren't they? There's
no need to carry any money with you ever again: you can
just take one with you to the shop and pay the exact amount
just by handing it over. If you haven't been paid yet, then
you don't need to worry, because the money will still be
there.
Online, Phone, U.S. Mail
or In-Person: Where is Your Credit Card and Personal
Identify Safest?
Identity theft is the fastest growing crime according to
the Federal Trade Commission (FTC). It occurs when someone
takes a piece of your personal information and uses it
without your knowledge to commit fraud or theft.
Simple Identity Theft
Protection
How many of you bank, shop, or transact other business
online? There are at least 4 million Department pf Defense
employees that access their pay records online only. Even
offline, stored financial data can be placed at risk in
computers that are used on the Internet as well.
How To Survive In A
Plastic World, Qualifying For Credit Card
Let's face it, having credit is no longer a choice. "Don't
leave home without it" is more like "can't buy a home
without it.
Credit Repair Kit Sound
To Good To Be True? It Is.
A lot of people have bad credit. It is unfortunate that
good people with good intentions are sometimes lured into
credit card offers with outrageous interest rates or
convinced to buy a new, overpriced car that they cannot
afford.
Tired Of Being
Broke?...Learn How To Force Banks To Give You
Money!
Imagine..
Student Credit
Cards
STUDENT CREDIT CARDS With graduate debt averaging over
£12,000, the ability to spread the cost of further
education using a student credit card is obviously
attractive. Adding to their appeal is the fact that these
cards are relatively easy to obtain.
Credit Repair, How
To
Credit repair, is in a word, vital to reestablishing your
credit. Unless you plan to never use your credit again,
then you have to find a way to fix it.
Learn How to Improve Your
Credit Score
Having a damaging credit record can hurt you in many ways.
It may prohibit you from making an important purchase such
as a home, car, computer or vacation.
Errors on Your Credit
Report: What You Should Do
There are times when you may be turned down for credit and
you do not understand why. According to the Fair Credit
Reporting Act you are entitled to a free copy of your
credit report if you have been denied credit because of
negative items on your credit report within 60 days of the
request for credit, if you are unemployed but looking for
work, are on welfare, or believe that your credit report is
incorrect because of fraud.
Give Yourself
Credit
The Beginning of the Credit Card EraIn 1951, Diners Club
issued the first credit card to 200 customers who could use
it at 27 restaurants in New York City. From that modest
beginning, credit cards have become an indispensable part
of modern life.
Useful Tips on Using
Credit Cards
Here are some useful tips on using credit cards. Whether
you shop online, by telephone or by mail, a credit card can
make buying many things much easier; but when you use a
credit card, it's important to keep track of your spending.
Good Credit -- Essential
for the Prospective Home Buyer
Credit is a funny thing. It can be a useful tool in the
hands of an informed individual, or a weight of burden to
the unsuspecting.
Identity Theft - How Can
You Prevent It Happening to You?
The nightmare of identity theft strikes an estimated
750,000 people every year. How can you keep from being one
of them? While there is no guarantee that you won't become
a victim, there are some steps you can take to decrease the
risk and protect yourself.
Dont Fall For A Scheme
When Trying To Rebuild Your Credit History
For people with a spotty credit history or bad credit,
getting approved for a standard credit card can be
difficult, if not impossible.There are a number of credit
card options that are aimed specifically at people who have
bad credit and are trying to rebuild or repair it.
How to Dispute Credit
Report Errors
Your credit report--a type of consumer report--contains
information about where you work and live and how you pay
your bills. It also may show whether you've been sued or
arrested or have filed for bankruptcy.
What is Credit Repair
and How Can It Help You?
There are millions of consumer credit reports on file from
mainly three major reporting bureaus which include Trans
Union, Experian, and Equifax. These credit gathering
agencies store huge amounts of data about every person that
takes out a loan, credit card, or any other line of credit.
Credit Counseling -- Why
It Doesnt Work For Most Debtors
"Cut Your Payments in Half!" the headline screams.
"Consolidate Your Bills into One Low Monthly Payment!"When
you see ads like this, they are often from Credit
Counseling firms.
10 Ways of Reducing the
Risk of Identity Theft
1- Check your credit report regularly2- Secure personal
information in your home, especially if you have roommates,
employ outside help, or are having work done in your
home.3- minimize the amount of information someone can
steal, do not carry extra credit cards, your Social
Security card, birth certificate or passport in your wallet
or purse, except when needed.
|
|
