I Can Breathe Now.

Credit cards suck. The companies will suck the money out of your small pile and place it into their large pile. Consider some numbers taken from a typical statement the big boys send out to their millions of suckers at their mercy:

$39 late fee
$29 “over the limit fee”
$30 finance charges
——————–
$108 total.
With the above situation you are going to pay at least $108 and not even make dent in your balance. How much longer can you withstand this kind of abuse?

The Credit Card industry will suck you dry. They will milk you for every penny you have and even the pennies you DON’T have. Consider this scenario :

Joe Blow has a $1000 credit limit on his card. He spends and spends and spends like most of us do. One day, he went to the gas station to get some gas and a 20 oz. Mountain Dew. As he reached into his wallet to get one of his many credit cards, he prayed that it would not be denied. Marcy, the attendant, asks, “Anything else?”

“Gas on 5.” Joe said, as he handed Marcy his credit card and waited with intense fear that the card would be declined…

Sound Familiar?

If it does sound familiar, you need to get off your ass and do something about it now - not tomorrow. Because tomorrow you’ll open up another credit card account.

Let’s see the true cost of Joe’s credit card balance. He has a measly $1000 credit limit on his card. He has missed a couple payments in the past and because of this, his nice intro 9.9% APR rate went to the default of 32.97% (pretty typical). By using bankrate.com’s credit card payback calculator, we can see that it will take over 7 years to pay back this card if he puts down $30 a month towards the balance - and that’s if he stops using it!

This entry (Permalink) was posted on Wednesday, August 15th, 2007 at 2:37 pm and is filed under credit cards, debt. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response , or trackback from your own site.