Debt Views

If you’ve wondered for quite some time about your credit card plans and services and their effect on you then this information is for you. You are probably not aware of it but there are thousands of institutions that mail their credit card offers to more than 6 billion people each year. Credit cards are in general bad business and should be avoided at all cost.

Debt is a product that is being sold each of us by banks and credit card service companies. Last year credit cards produced more than 150 million dollars in profits. Most of this money was taken from people who least could afford to pay it. As we have said credit cards are very bad business. Proverbs: states that “borrower is the slave to the lender” and the American people have become slaves to the banks and credit card companies.

It would be far wiser to obtain a debit or check card tied to your bank account than obtain a credit card. Better yet would be to live on a cash basis. However modern society is tied to the use of plastic money so a debit card will do nicely.

If you are financially fit and have the genuine need of a credit card you should choose your card carefully. Take the time and read your credit card plans and service agreement carefully. If you can really understand it you will be amazed at what it says. Basically they can change the plans rules any time they feel like it.

Recently a business associate found that he was having trouble keeping up with his monthly credit card payments. When he took the time to exam his monthly statement he found that the credit card company had raised his interest rate to a whopping 31 percent. They had done this without even notifying him of the change. He has never missed or been late on a payment and calls to the credit card company produced no explanation for the rate increase.

When this happens you should contact the credit card provider and try and I say try to get the rate reduced to its former level. It goes without saying rate reductions are rare. The best option is to pay off the credit card debt entirely and use a debit card. Then you can search for a friendly credit card provider if there is one. If you are carrying too much debt to pay it all off at once then you should consider transferring the debt to another lower interest credit card.

Again before you sign up for a new lower rate card you should take the time to carefully review the credit card plans and service agreement before you even think about signing your name to it. In general most credit card agreements have the same language that allows them to arbitrarily raise your rate without notice. You can easily see that credit card companies have replaced mafia loan sharks and now collect over 90 billion dollars in fees and late payments each year. It is their major source of income especially after causing the home mortgage crisis.

Failure to manage your credit card debt will hurt you and your family. Some experts have stated that credit card debt is the number one cause of divorce in America. Credit cards are bad for you and all your loved ones. Just say no to credit cards.