Generally, these tricky tactics are hidden in the small print of your statement, which can easily go unnoticed. Honestly, how many people take the time to read their entire statement each and every month?
One of the most common tactics these lenders are practicing is the raising fees associated with the card. Today, the average late fee is $34. The average over-limit fee is an outrageous $31.
So in the event that an individual is late making a payment and the late fee puts them over their credit limit. . . they could be charged as much as a $65 more than their normal minimum payment, for that month alone.
If they don't have the additional cash to pay the exorbitant fees, the account will remain over limit the next month and extra fees will be added at that time, as well. It is a situation that can really snowball out of control, in a very short period of time.
Many credit card issuers are now raising interest rates, based on an individual's credit score. If that person's credit score decreases for any reason, whatsoever, credit card companies can raise their interest rate to 30% or more.
There are even cases where individuals with a good credit score are being charged the highest interest rate, without any warning. Some credit card companies feel that those who pay only the minimum payment each month are probably doing so because they are overextended. This automatically moves them to the high-risk category.
As unscrupulous and uncaring as this seems, under the current law credit card companies are legally permitted to do this.
If you are struggling with a great deal of debt that only seems to be getting worse, you may want to consider a debt relief option . There are several choices available, including debt settlement . Remember, there is help available. You are definitely not alone.
Tom Bates, CEO and President is an IAPDA Certified Debt Arbitrator, he offers years of experience in both the credit and collections industry and has founded Absolute to assist consumers in need of quality debt settlement at a reduced rate. We understand your already faced with mounting debt and want what is best for you.
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Celina, Texas 75009