"My dad has always taught me these words: care and share. That's why we put on clinics. The only thing I can do is try to give back. If it works, it works."Tiger Woods
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A Guide to Bad Credit Credit Cards
Having less than perfect credit can hurt you and your financial future. One way to get yourself out of the dark hole of credit is by responsibly using a credit card. If you have bad credit and are looking for a credit card, you may want to stick with ...
Credit Cards Watch Out When Using Your Credit Card Abroad
Going on holiday or business to Spain, France or Italy this year? Then watch out for a new ploy to overcharge your credit or debt card. Many restaurateurs and retailers in these countries now have the facility to get you to authorise your bill in euros ...
Eliminate Credit Card Debt Legally - Strategies For Paying Off Credit Cards
Eliminating credit card debt legally will free up funds in your monthly budget. It will also improve your credit score so you can qualify for better rates on future purchases, such as a car or home. To start getting your credit cards under control, ...
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The latest income figures show that some 25 percent of all income derived by credit card companies is generated by late payment fees. If you have been late with a payment lately, you've already noticed that credit card companies have discovered a new way to generate a great deal of extra income. The average late fee today is $35.00, if you owe more than $1000. Since the national average for American families is $8,000 of credit card debt, that represents a sizable pool of potential income for creditors, and they're going after it aggressively.
In fact, latest income figures show that some 25 percent of all income derived by credit card companies is generated by late payment fees. When you factor in penalties for exceeding credit limits, that percentage jumps to 33. That means that 1/3 of all the income generated by credit card companies comes strictly from penalizing cardholders for spending too much or not paying on time. In 1995, income from penalty fees accounted for only 18 percent of the companies' profits. The new figures represent almost a doubling of that income - a startling revelation. There is another figure that doesn't show up in those numbers. If you're late with a payment, especially if it's during a promotional period of low interest, your interest rate could skyrocket. For example, I recently received an offer from a credit card company that offered a six-month rate of zero percent to new customers. That sounded great, until I looked at the fine print. If I was late once during that promotional period, my interest rate would have jumped from the usual 13 percent to 23 percent. (Of course, I also would have had to pay a $39.00 late fee.) That was bad enough, but if I had been late a second time, my interest rate would have soared to a staggering 29 percent! (And another $39.00 late fee.)
Does that sound outrageous? It does, but it's not unusual in today's credit card world. For example, back in 1988, only about 47 percent of credit card companies would have raised a customer's interest rate if they paid late. Today, that number has risen to some 76 percent! That means it's more difficult now to find a company that WON'T raise your rates. And that trend isn't likely to change in the near future, because it's a way for credit card companies to generate huge profits.
So if you carry a credit card debt, it will pay you, in more ways than one, to make your credit card payments on time. If you don't, you could find yourself seriously in the red , for a long time to come. Copyright © Jeanette J. Fisher
ABOUT THE AUTHOR
Jeanette Fisher teaches how to get out from under credit card debt, how to use credit to make money, and six ways to build strong credit to finance your first home and multiple investment properties. For free credit advice and free ebook "Credit Tips for Mortgage Financing," see http://worryfreecredit.com
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Card debt still choking low, middle incomesChicago TribuneForty percent have turned to their credit cards to cover basic living expenses such as rent, mortgage bills, groceries and utilities, according to a national survey by think tank Demos. Those surveyed were low- and middle-income people who carried a ... |
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Glacier Credit Card Trust Raises C$200M From Debt IssueWall Street JournalTORONTO (Dow Jones)--Glacier Credit Card Trust raised C$200 millon (US$195.3 million) from an issue of asset-backed securities, according to people familiar with the matter. The offering was priced at 138 basis points over the relevant Government of ...and more » |
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