redit cards are an Are they really giving you 0%
alluring trap invented by interest? Only if you can pay off
our modern financial the debt before the time frame is
system. up. What they are counting on is
Buying something using a credit you NOT having the ability to pay
card is not bad, IF you have the it off.
income to pay the credit card What happens if you can’t pay?
balance in full when the Have you ever read the fine print
statement arrives, plus all your on their “Terms and Conditions”
other bills.
agreement? Most agreements have
But buying with a credit card an attractive interest rate in
because you don’t actually have large print; 9.99% to 12.99% is
the money, is simply committing typical. But, many rates are
your future earnings to the variable, meaning it is the
credit company under the threat “attractive” rate PLUS the “prime
of a bad credit rating. That is rate” which is what the banks are
financial slavery.
charging the credit company. This
Over the past few years, can add a whopping 6 – 9% on top
financial experts have helped a of that attractive interest
lot of people to get out of the rate.
credit card trap with debt Read further and you’ll see
reduction programs. Helping the rest of the trap. If you miss
people do this is not looked on a payment or are late, they have
favorably by the credit the right to increase the
companies; they lose all that interest rate to well over 30%.
profitable interest. They take PLUS, they get to add an
counter measures to hook more additional $25 – 39 late fee. On
people back in by offering 0% a $1,000 balance, that is $52 -
percent interest for some period 66 in monthly interest and fees
of time.
you must pay before you ever get
to pay the first dollar of the earned 25,000 air miles to take a
price of the item you flight.
charged.
Who actually benefits
What else do the credit card financially if you charge up your
companies have in their arsenal credit cards to earn a “free”
of weapons to make sure they make flight? It does not take a genius
money from you?
to see that trap dressed up to
First is that enticing look like a big benefit to
“minimum payment” they offer you.
which is mostly interest, and
keeps you paying for whatever you
bought for about 20 years. type="text/javascript">
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About the Author:
Sandra Simmons, President of Money Management Solutions has years of experience helping business owners and individuals manage their money to achieve financial freedom. Watch the FREE 5-minute demo video on her website www.MoneyMgmtSolutions.com .
