What You Don’t Know About Credit Cards WILL Hurt You.

I read an article by Jennifer Opens called, “15-Minute Tip: Surviving a credit-card default” and thought I might find out a bit more about credit-card defaults and what can happen.

Credit cards can be evil insidious things that can eat your savings and you can get yourself into a repayment cycle where you just cannot pay off the debt.

There are some thing you need to be aware of if you are paying off your credit card specially in this economic crisis when money may be tight. image

First if you miss a payment you will get charged a late payment fee says Jennifer. Whilst you are licking your wounds your bank is likely to put your account in default status.

What does Default Status mean?

It basically means you have missed a payment on your credit card. Big deal. But it will cost you up to $39. Okay fair cop you might say but there’s more and it will hurt you.

The bank will hike your interest rate to its default rate which could be as high as 32%. Ouch!

Jennifer does have advice that can help you minimise the pain that might be inflicted should you default. Read her article, “Four rules of the road for avoiding — and fixing — credit-card default“.

You might want to flip to her Website WeSeed. It is an interesting site,

“…. whose mission is to enable people to discover the stock market in their everyday lives through their passions, their jobs and the brands they know and love.”

At DebtWarriors there is also a great short video that is part of a course called “Credit Card Medic”, “Debt Management: How To Handle Default On Credit Card [Video]

If you have credit card issues the course may well be worth a look. Credit card interest rates can seriously erode your wealth if not managed.

Many people bury their head in the sand when their credit card goes into default and try to ignore the problem. The credit card medic video course states it will teach you how to negotiate your debt with the credit card company to lower your debt. That can’t be a bad thing.

The banks and Credit Card Companies don’t want you to know the proven secrets in the Credit Card Medic Debt Reduction Video Course.”

I have no affiliation with DebtWarriors.

Educating yourself on credit card debt and how to negotiate with the debt holders can help you get control of your finances.

One final web site is, “The Secret History of the Credit Card“. It tells you the eight things it believe credit card users should know. These include:

  • Even if you make your credit card payments on time, the credit card bank can raise your interest rate automatically if you’re late on payments elsewhere — such as on another credit card or on a phone, car, or house payment — or simply because the bank feels you have taken on too much debt.
  • There is no limit on the amount a credit card company can charge a cardholder for being even an hour late with a payment.

You might want to go there now and read the other 6 Must Knows.

gas credit cards

If you are a person who always pays off their credit card in total before the payment is due that’s great forget this post. If not then educate yourself. Credit cards are a valuable tool in your financial management if used properly.

P.S – In the interest of disclosure, I have been asked to post a link to a Credit Card Link on my Blog. Here it is. I am paid a small amount of money for placing the Ad on my post. I checked out the Web site and did a search for any complaints about the company Credit-Land.com and found none. There is an affiliate program where affiliates can get paid some money when people apply for the gas credit card through their affiliate link. I have applied for it but don’t have it yet. Forums have good things to say about Credit-Card.com’s affiliate program and promptness of paying commissions. So with no known bad reports I’m happy to host the link.

2 Responses to “What You Don’t Know About Credit Cards WILL Hurt You.”

  1. J. Ford says:

    Dear Mr. Bates, you have given us encouragement by including a review of our video. You didn’t have to, but you did anyway. You are honestly appreciated, considering that we never asked for or compensated you for your review of our video.

    Your actions are of someone whom actually receives joy from helping others with your knowledge. We honor you for that πŸ™‚

    May your blog prosper, and may those you seek to help, know that you are the “Real-Deal”.

    J. Ford

  2. admin says:

    Jerome,

    No problem. I’m happy to do it if I believe it will help Baby Boomers with credit card problems.

    David Bates

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