Credit Card Debt Free

Credit Card Debt Free - Secrets Credit Card Companies Don't Want You to Know

Credit card debt is one of the top reasons why people have to declare bankruptcy. It can be debilitating on finances as well as self esteem if not properly managed. However, there are several key facts that most credit card companies do not want their customers to know. These facts can potentially allow those in credit card debt or those trying to stay out of credit card debt to maintain their financial integrity without breaking the bank.

Fact 1: The credit card score is the key to keeping interest down and sustaining the ability to get out of or stay out of credit card debt. Even if agreed upon payments are being made on time, the credit card score can go down a little if another payment is neglected, even by a day and even if the payment is small.

Fact 2: There is no maximum interest rate for credit cards. As long as the credit card is not being paid off and the payments are not 100% of the balance, the rate of interest can always grow. In the most extreme cases, credit card interest can be well over 200% of the original purchase and still be allowed to grow. Interest is how credit card companies make their money, so they will always try to add more to it.

Fact 3: The other way in which credit card companies are able to make money is by enforcing late fees. If a payment is late, some credit card companies will tack on no less than $30 to the bill. Some of these late fees can be even more depending on how late the payment is and how large it is. Several of these fees can make credit card debt rise to new heights and launch those in credit card debt, even further into debt.

Fact 4: More often than not, people spend more with credit than they do with cash. If someone is using credit instead of cash, that person can statistically pay up to 18% more on a purchase than what they would with cash.