| |
| |
|
Credit Information |
|
|
|
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:
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.
|
| Home | Site Map | |
| © 2007 |
