Credit card companies have so many ways to get you into trouble and hike your rates that you cannot, repeat cannot be too careful! It is why so many folks are seeking Debt consolidation, credit counseling and Debt Relief, etc. It is just the way it is right now. I heard a woman last week talking about how she had about $10,000 worth of debt on her credit card. She had a good rate on the card—below 8%. But she made a mistake. She was late on one payment. Soon she was paying nearly 30% interest on that credit card debt! How can this even be legal? But it is. This is one of the reasons that so many people are looking for Credit Counseling Debt consolidation, debt management and other types of debt help as well.Have you ever been late on a car payment or some other bill, and magically your credit card company found out about the late payment and upped your interest? And by the way, having a “fixed-rate” interest rate only means that your card has to give you 15 days before upping your rate.
Unless you are compelled by the direst circumstances, never get a cash advance. You begin paying interest as soon as you take it out, and you will pay a much higher interest rate than you would on a purchase.
Beware of credit card companies bearing favors. Let’s say that because you are such an esteemed customer, your credit card offers to up your credit limit. All that credit to which you will have access may actually hurt you when you apply for another loan–say for instance a mortgage. The mortgage lender may worry that you will buy a house, and proceed to buy $10,000 worth of window coverings, and $20,000 worth of furniture, and well, you get the picture. Pretty soon you can’t make the payments on all that debt.
But if you do not help do not hesitate to go out there and get that credit counseling.
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