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Debt Management - Consumer Credit Counseling & Debt Counseling Services |
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Consumer Credit Counseling
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- Toll Free Credit Card Facts & Tips As recently as 1995, credit card customers paid an average of $20 in penalty fees. Credit card companies reported making only $8.3 billion in such charges. Recent figures, however, report the credit card industry raked in an all-time high of $24 billion in late fees, activation fees, annual fees and over-limit fees. Toy, the average customer pays 134% ($45 dollars) more for their errors than in 1994. Penalty fees accounted for a hefty 33% of profits. To compound that disturbing figure, the average household held $10.4 TRILLION in outstanding debt; it is not a surprise then that one out of every 73 filed for bankruptcy. Along with the increase in credit card spending there was a decline in personal savings to a meager 1.8%. As a nation, we're borrowing money at a record clip to pay for a lifestyle well beyond our means. Two-cycle Billing - Imagine paying off your credit card in May then making a partial payment on your new balance in June. Some banks will charge you for two months' worth of interest thus paying interest twice in one month. Debit Cards - They may look and feel like a credit card, but they're not. Payments are deducted directly from you checking account and they offer less protection than a credit card. With debit cards you don't have the same right to charge back problem purchases. Also, if you miss a payment, the issuing bank may have the right to withdraw funds from you checking account. If lost of stolen, you have to report to the bank within 60 days or you could be on the hook for all the purchases made with the stolen card. Universal
Default - This clause, buried deep in your card holders agreement, allows your issuing credit card company to raise your rates as high as 30% for missing a payment, even if you missed a payment on a different credit card issued by a different company. How would they know this? Your card holder agreement gives them the right to regularly access your credit report. Convenience Checks - If you've been a credit card holder for any period of time most likely you've received a letter from you credit card issuer containing preprinted checks with your name already on it. All you have to do is fill in the amount payable to the person/store of your choosing and sign it. Before doing so, read the back of the letter for terms and conditions. What you are essentially doing is taking out a cash advance in which interest starts accruing from the time it hits the bank. No grace period here. Some even have minimum amounts that the checks have to be written for. As a nation, we are mortgaging our financial futures for the benefit of immediate gratification. It is important, if you insist on living on credit, to have a plan in place to cover you in case of emergencies. What would you do if you lost your job, or became disabled? Make a plan, and if you find you are addicted to spending money or are deep in debt and don’t know how you are going to pay off the cards, give us a call and let us help you. More to come....
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