Credit card fees are on the rise. Each year the companies are
increasing the rates of interest and the fees. People from all
walks of life are hunting for low interest credit cards to
substitute their income. Credit interest rates however are
reaching as high as 17.99% and up. If you have bad credit you
are subject to pay high interest rates, over rated fees, and
receive a low credit line. The line of credit offered to most
debtors is not enough to cover the months rent, let alone to pay
utilities. The minimal amount may save you from shut-off
notices, or late fees on delinquent bills, but you will make up
the difference when you pay the balance on the credit cards.
The companies that lend credit cards are like many people in the
world. The more money the make, the more money they want,
therefore some companies will go to all lengths to get more for
offering less. At 17.99% APR you would pay around $23.598 for a
$20 dollar item. Now the price does not appear to be a lot, but
over the course of a year, you will pay $83.176 for each
twenty-dollar item you purchased. If you used the car to pay
utilities to avoid shut-off or late charges, you would pay
$323.82 each year on a $150 monthly bill. If you were in debt
already, how much leverage would you have if you used that extra
cash to pay off a debt? You could build you credit just as easy
by making small payments toward your bill. If you creditors
refuse to accept low payments, keep the receipts and when that
company tries to give you any problems, such as take you to
court you will have ammunition.
Other cards are available to individuals that do not have debt
issues. However, everyday there are reports of people filing
bankruptcy for using credit cards. Millions of people every year
are searching for debt consolidations and bankruptcy to relieve
them of their debts. The credit cards may seem appealing, but in
the end, those pieces of plastic can cost you a fortune.
One of the better solutions for building credit is to contact
your creditors, ask for extensions on your debts, or simply ask
for dismissal. Many creditors rather work with you directly than
deal with collection agencies, and will often make room for you
to repay your debts.
Credit cards are entrapments that set you up for a long ride to
the debt agencies. Once you land in the long-arms of the
collection agencies, you might wish you took another course that
applying for a credit card to relieve debt.
Rich people have credit cards, believing it is a sure-fired way
of keeping their credit alive and elevating. However,
millionaires have found that credit cards are more debts they
regret later. Some people use their credit cards to purchase new
vehicles, all to find out that the high rates and fees on the
card are more than bearable.
When a person works hard all his life and later pays out every
dime he makes, it often leads to additional problems. Hundreds
of people have committed suicide simply because they could not
see a way out of debt. Credit card fees they could not repay
bound a large number of the deceased. Therefore, that piece of
plastic might turn into a monster later.
If you must have a credit card make sure, you do not go over
your limit. Keep the purchases low so that you can repay the
debts before the grace period. Also, make sure that you only use
the card for what you need. If you need to use the card to pay
late bills or prevent shut-offs be sure that you save money
during the grace cycle, which is commonly 25 days to payoff the
card. Following this guideline will help keep cost down. In
addition, if you spend less on the card, the company will not
get more later. A final word of caution is to keep your cards
where no one else can get them and never give anyone your PIN.
About the author:
Tony Robinson is a careful and experienced credit card user, He
is also a Webmaster and International Author. Check out his
credit card tips at
http://www.ezy-credit-card.com/
