How Americans are Dealing With Credit Card Debt
Wondering what other people are doing about credit card debt? Many of us have the great home or homes, cars, boats wardrobe, jewelry and a boatload of debt.
After a while we find that those things don’t bring us happiness by themselves. But many discover that we work to support this living standard and loose our happiness and any hope of a sound financial future.
When most bill come due, the bills comes with a feeling of exasperation, because the income is not enough to cover all these payments. When it comes to the point where you are paying some of these bill with your Credit Cards then you are just shifting debt around and adding debt.
Now you are struggling with the minimum payments, but wait there is hope. One of the bills is from a Credit Card Company offering a generous transfer balance option at half the interest rate you are pay. So what’s to think about 9% verses 18%.
Jump ahead 2 months. The wonderful Credit Card Company sent you the bill late and charges you a late fee of $39.00. You also notice on the statement that $40 cash advance ended up costing almost $15 bucks! And oh yes 9% is 25%. You call customer service to find out what is going on.
The Customer Service Representative reads you the part about cash advance fee and tells you that your income to debt ratio precludes you from the 9% rate but they will waive the late fee. Thanks!
Did you know some credit card agreements are 10 pages long? Believe me they can hide all kinds of sneaky stuff in so many words. They are all written by lawyers, what does that tell you?
A lot of problems people are having can be blamed on the Banking Industry and in particular the Credit Card Companies. Your debt of any kind is profits to them.
How Bad Are Credit Card Companies?
This list of business practices that yield high return for them and financial ruin for us.
· The 2006 Bankruptcy Law, which everyone acknowledges was written by the Bankers and for the Bankers.
· Bait and Switch tricks allow consumer to pay 1.5 % minimum payments for year resulting in higher balance. This year they doubles minimum payments
· Violations of the Truth in Lending Laws and Fair Debt Collections Act every day and night at home and at work their collection effort torment, harass and lie to the people.
· The Credit Card Company Market to the least credit worth element of the population. The FED looked at this issue and saw nothing wrong not even with marketing Credit Cards to college kid.
· Usury Interest Rates of 20 to 30 % account in great part for the reason that 42% of household income goes to interest payment.
A great trait of Americans is to be optimistic and resourceful. We are starting to see our people turning their backs on debt and moving towards being debt free. Average Americans” are realizing that they are overwhelmed with Credit Card Debt and are being betrayed of the Banking Industry.
Did I mention, the misguided information about debt elimination being touted by Bankruptcy Attorneys, Debt Negotiators, and Consolidators including the misrepresentation of many Consumer Counseling programs that are being “hyped” today. You have to be very careful and read the fine print on any such agreement.
