There are 6 things your credit card company DOES NOT want you to know!
Knowing these 6 things will save you a ton of hassle...and money!
Here they are...
#1 The TRAP is set. The average consumer has 4 credit cards, with an average balance per card of $3,900 (that’s $15,600 in debt in case you haven’t done the math!) Sure, there’s safety in numbers, but is this the company in which you want to belong?
I don’t know about you, but I’d much rather be in the “below average” customer group that has less than $1,000 in TOTAL credit card debt. These companies keep offering us new cards every week (think about how many you have received in the last year!) They offer higher credit limits and cash advances. Basically, they insult our intelligence. Many consumers are flattered when they receive their “PRE-APPROVED PLATINUM VISA- just fill out the form below sign and send back” letter. We think we’re being rewarded for a job well done. The job, of course, is being able to spend money with the best of them and pay it back better than most. Don’t get SUCKED into this mental TRAP! STOP TRYING TO KEEP UP WITH THE JONESES; THEY’RE HEADED FOR BANKRUPTCY, ANYWAY!
#2 The Never-Ending Debt… If you make the minimum payment due on your average balance of $3,900 each month, your credit card will be paid off in approximately 39 years! It’s called “amortization”, or in the case of credit card repayment, I should say “lack of amortization.” In lay terms, this simply means you have no real term set in order to pay this back. It’s open-ended. They’ll let you pay on that same balance forever if you let ‘em. When you buy an automobile, you may finance it for 5 years. You know, if you never send an extra dime over your monthly payment to that Loan Company or bank, you’ll own that car on the day of your 60th payment. You have none of these guarantees with credit cards. They are revolving accounts. I guess you can say they are like the Energizer Bunny, “THEY KEEP GOING, AND GOING, AND GOING…”
Want to know the other 4 credit card traps? Then click here to get them!
Please let me know if there's anything else I can do to help you.
Steve
Sunday, June 3, 2007
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