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Many consumers are not aware of the
time it will take them to pay off their current debt or
what the final interest charges can amount to. You should
find the following credit card facts on this page and
Examples 1 and 2 linked below to be very helpful:
Please remember these important facts
about credit cards:
- Late payment fees are now averaging $29.00
per month. This can add up quickly and in some
cases may wipe out the small amount of your payment
going to principle.
- Over the limit fees are also averaging $29.00
per month. Like late payment fees, these can
add up quickly and in some cases may wipe out the small
amount of your payment going to principle.
- If your credit card statement shows that you have
an outstanding balance, but your minimum monthly payment
is not required, it is strongly recommended that you
still make a payment.
Many consumers think this is a consumer
incentive or a bonus. What some consumers don’t realize
is that they are still paying interest on their outstanding
balance. This means that the only bonus is to the
credit card company. They will now earn more interest
on your money, and you will ultimately owe more money.
Unless your credit card company is offering an incentive
for a specified period of time at no interest, don’t
fall for this gimmick.
-
Some credit card companies will
offer no interest for a period of time. This is usually
in connection with new credit cards or new purchases.
Make sure you understand all the requirements in order
to receive the special offer. Some offers only apply
at specific retailers, while others only apply if
you charge over a specific amount of money in a single
transaction. Most do not apply to cash advances.
We can’t begin to mention all the
possibilities. There are as many rules as a marketing
department can come up with. Make sure you read the
fine print. Also, keep in mind that credit card companies
may charge you all the back interest if there is an
outstanding balance at the end of the offer. Complete
our free no obligation application now!
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The interest rate you pay on retailer
charges and the interest rate you pay on cash advances
may be different. In many cases cash advances can
be much higher and are usually the last to be paid.
This means that your minimum payment will be used
first to pay down your retailer charges and if any
amount from your monthly payment is left, it will
be used to pay off your cash advances. Paying higher
interest rates combined with cash advancement fees
and possible bank convenience charges, this can end
up costing you a lot of money.
Beware, if you are offered cash
advances at no interest charge make sure you know
the terms and conditions. Remember, when the offer
ends, and if you still have an outstanding cash advancement
balance, you may find your interest rate jumping higher
than you expected. We can’t stress enough how important
it is to understand the terms and conditions of each
credit card you use.
-
When offering a new credit card,
many companies will offer incentives to new card holders.
These offers may include very low or no interest for
a short period of time, no cash advance fees, no annual
fees etc. When the offer period ends make sure you
understand what to expect. Many cards will jump to
8% or even as high as 24%.
-
Complete
our free no obligation application now!
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Credit
card debt help #1
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Credit
card debt help #2
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