Maintain your old Siemens Hipath system

Credit Card Shocker

Have you ever looked at your credit card statement? I'm not talking about just making sure that all the transactions are correct. I'm talking about looking at the finance charges. I daresay that sometimes that figure is almost as great as the minimum monthly payment you're making. After all, as long as you can keep the creditors at bay by paying the minimum, that's all you care about, right? If you agreed, I urge you to reconsider.

I'm sure that by now, many of you realize that you lose money by buying on credit. Still, I don't think many of you appreciate just how much your credit cards are costing you. I'd like to really drive that point home.

Let's say that Joe decides he needs new patio furniture. He doesn't have the $2,000 cash, so he slaps down his plastic card knowing that he can make the minimum monthly payment, no sweat. And so that's what he does, month in, month, out, year in, year out, and pretty soon he's been doing this for one full decade. Surely it's paid off by now! No, not even close. In fact, if Joe continues to make the minimum monthly payment, he will be paying for that furniture for the next 38 years! And once he has made the final payment on his original $2,000 purchase, he will have paid an additional $5,300 in interest! Pretty disgusting, isn't it? And this is at 14% APR. Many cards run higher.

Some of you more savvy credit card users out there might be thinking that you already know this, so you don't fall for that trap anymore. You only get credit cards with a much lower interest rate, right? But do you notice that it's only for a few months? And do you pay attention to what the interest rate jumps to after that short introductory period? You kind of have to hunt around for this figure since they don't put it in plain view. Believe me, credit card companies are not losing money on these lower introductory rate offers.

Credit card promotions are becoming even more devious. Now the credit card companies are offering 0% interest on all balance transfers for up to 18 months! Wow, well, you've GOT to take advantage of that, right? I'll show you three reasons why you shouldn't.

First, even though you might be "pre-approved", it is in no way certain that you will actually get this low rate. The credit card companies reserve the right to reconsider their original offer based on your qualifications. They will often go ahead and issue you a credit card, but it could be at a substantially higher rate. Don't assume that what you applied for is what you are getting.

Secondly, there are often balance transfer fees that are substantial enough to gobble up any savings you might make on a lower interest rate. Transfer rates run anywhere from 3% to a hefty 5%, with a single transaction costing as much as $65.

Thirdly, and this is the sneakiest part of all, in order to secure the 0% rate on your transfers, you are required to purchase a minimum amount on your card for several consecutive months. At first, this doesn't sound so bad. However, the fine print tells you that the interest rate applied to these new purchases is NOT the same 0% rate, but a different, much higher rate.

What's more, all your payments will always be allocated to the balance that will earn the credit card company the most money. This means that the balances with the lowest rates will be targeted first, while the balance with the much higher rate keeps accruing and compounding interest month after month. So, if you transfer a large sum in order to take advantage of this seemingly generous offer, you will likely be paying on it for a very long time before you ever get around to paying down the mandatory purchases, which are racking up some pretty serious charges in the meantime..

And we've only looked at interest rates here. There are also default penalties, late charges, over-the-limit fees, transaction fees, ATM fees, stop-payment fees, cash advance fees and annual fees, all of which are on the increase. Over half the states in the union have no limit on what credit card issuers can charge for annual fees and yearly interest rates. These companies are gouging their customers with charges that are downright outrageous, and unfortunately for us, legal.

So how do you avoid falling into these sneaky traps that the credit card companies set? If you are lucky enough to not be playing the losing game of credit card roulette, for heaven's sake, don't start! If you are already involved, get out as fast as you can. Here are a few basic steps.

  • Don't carry a credit card. It's amazing how easy it is to ignore this obvious first step.

  • Apply any extra money to your debts first. If you're saving a little nest egg earning at a rate of 5%, but you have debts gnawing away to the tune of 12%, it's not difficult to see that this is a losing proposition.

  • Target one debt for elimination at a time. Pick the one that can be wiped out the most quickly first.

  • Take all the extra money from the first debt and apply it to your second target.

  • Continue in like fashion until you have dug yourself out of this miserable pit.

And finally, breathe a major sigh of relief and vow never to pass that way again.

About The Author

Rosella Aranda, international marketer, writer and business mentor, collaborates with a team of experienced professionals to help people achieve financial health and peace of mind. To learn how to reduce your debt, view: http://www.FreeFreedomSeminar.com. For further information on how you can become financially independent, please visit http://www.FinancialFreedomWorld.com or write to rosella_aranda@yahoo.com.

In The News:

Six dead after shooting in town in Germany
Fri, 24 Jan 2020 13:13:00 +0000
Six people have died after a shooting in a town in Germany, police have said.

Coronavirus outbreak: Hospital to be built in six days as death toll rises
Fri, 24 Jan 2020 00:22:00 +0000
China is building a new 1,000-bed hospital in just six days to treat victims of the new deadly coronavirus.

Prince Charles: 'Dearest wish is freedom for Palestinians'
Fri, 24 Jan 2020 10:46:00 +0000
Prince Charles has said it is his "dearest wish" that Palestinians see "freedom, justice and equality" in the future.

Palestinians clash with Israeli police after 'peace plan' leak
Fri, 24 Jan 2020 07:37:00 +0000
Israeli security forces have clashed with Palestinian worshippers as they arrived at Friday prayers at Jerusalem's Al Aqsa mosque.

US crew killed in air tanker crash while battling fires named
Fri, 24 Jan 2020 06:20:00 +0000
Three US firefighters who died when their air tanker plane crashed in a "fireball" while battling bushfires in southeastern Australia have been named.



tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Top 5 Credit Misconceptions

We have all heard the rumors?from neighbors, relatives or friends.... Read More

Reward Credit Cards: Get the Best Rewards Card Incentive Program

A good credit reward card can contribute to your retirement... Read More

Your Consumer Rights

If you have ever fallen behind on your debts you... Read More

Free Credit Report ? Watch Out for Scams

Many people may still not be aware of an amendment... Read More

Consumer Credit Reports

A consumer credit report is a factual record of an... Read More

Five Reasons to Repair Your Credit Score - You Can Do It Yourself

There are multiple reasons that tell us why we should... Read More

Good Credit Is a Necessity for Everyday Living

Most of us want a good credit report to obtain... Read More

Commercial Collections And Credit Granting

It is estimated that billions of dollars in delinquent commercial... Read More

Useful Tips on Borrowing Money

Here are some useful tips on borrowing money. Borrowing money... Read More

5 Ways To Raise Credit Score

It's not as hard as you think to raise credit... Read More

Low Interest Credit Cards Have Many Advantages

When credit cards are used wisely they can be very... Read More

Winning The Credit Game!

Everywhere we go, the word credit can be found, shining... Read More

Beware the Shopping Mall Monster

Like me, you've probably been offered a fair old number... Read More

Finding the Right Credit Card

There are so many credit cards out there to choose... Read More

Dont Fall for Credit Repair Scams

We've all seen the ads on television or in magazines,... Read More

How Can A Qualified Mortgage Consultant Help Boost Your Credit Scores?

Consumers interested in purchasing or refinancing a home will pay... Read More

Credit Repair Myths and Facts

There are no secrets to repairing your credit. Many shady... Read More

Avoiding College Credit Card Traps

Congratulations college freshman! You're about to embark on one of... Read More

Stop Credit Card Offers

You can stop receiving credit card offers in the mail!... Read More

Cash Advance ? How Does It Work?

If you want a cash advance or a payday/paycheck loan,... Read More

Credit Cards Can Help You Get Out Of Debt

Your credit rating / credit score is based upon how... Read More

Which Citi Mastercard Is Right For You?

You've decided to apply for a Citi MasterCard, but with... Read More

Useful Tips On Avoiding Credit and Charge Card Fraud

Credit and charge card fraud costs cardholders and issuers hundreds... Read More

Can Credit Search Entries Affect Your Ability to get Approved for a New Loan in the UK?

About Search Entries:Every time a lender checks your credit history... Read More

Credit Scoring: What You Dont Know Can Hurt You

You've probably heard the term credit scoring. You may have... Read More