Years ago the only credit cards you could get where Diners Club and American Express. You had to have excellent credit and you where required to pay your balance in full at the end of the month. They made their money by charging yearly fees.
What happened? Banks got in the business and realized that they could make money by letting people make minimal monthly payments and charge ridiculous interest rates.
Remember banks don’t want you to pay off your cards at the end of the month. If they can convince you to pay the bare minimum-they are in your wallet, month in and month out!
Do you know that if you put $10,000 on a credit card charging 19.98% a year and you paid the minimum payment it would take you 37 years to pay it off and you would pay almost $19,000 in interest charges.
Another way they make money is to charge late fees. They can charge you up to a $39 late fee and increase your interest rate up to 29%. Sounds like something the Mafia would do!
Normally you had 30 days to pay your bill, now it’s down to 21 days from the day it’s mailed out to you. Too bad if your away from home for an extended period of time.
Carrying any credit card debt is a VERY bad idea. Focus on getting rid of this monster!
Jacques
CreatingWealthThatLasts
2 comments:
Hi Jacques .. it is an iniquitous debt ..
thanks for pointing it out quite so simply ..
Hilary Melton-Butcher
Positive Letters
Jacques, you are so right it is a very bad monster. This is one that can financially eat you up and leave nothing behind.
Dan and Deanna "Marketing Unscrambled"
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