Debt Solution Blog

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We all have been lured by the “low interest for the life of the loan” credit cards. They were great for short-term loans, no hassle, no fuss, just fill out the check and you are set. Oh, don’t forget the fine print!

So your very good about paying my bills on time, but just once miss a payment. Get hit with a late fee, and watch your interest rate zoom. Then call the credit card company and be told that if your good about future payments, they will drop it. Now scrambled to find the money needed to pay the total amount due on the card from every nook, savings and friend. Eventually you paid it off. and everyone you got meny from back, even got your credit card back on track.   

So have you heard this one, had a credit card with a high balance. The company said that you had two options, the first one is continue to use the card while the interest rate increased. The second, stop using the card and the rate would stay the same until the balance is paid off. So stopped using the card and kept the old rate. Seemed easy in principle, then more than two years ago, you used that card to register at Blockbuster. Then forgot to return a movie, they charged the card! Your rate went up instantly and now your stuck. Credit card companies are notorious about late payments, even a payment that’s late by a few minutes can pile up fees, interest charges and other penalties. Depending on how late the payment is, your card issuer may also report the problem to any of the credit bureaus, which can wreak havoc on your credit score. So watch out for all the tricks to get money from fees and interest.