Credit cards are like a pact with the Devil. The card seems harmless. It is easy to use. Cash was never so available. It can satisfy any immediate need. It feels good until the debt comes due. Then the Devil (Credit Card Companies) extract their ounce of flesh. I bet you never paid any attention to all the penalties that accompany use of a card.
I've had one credit card for over 20 years. I have always paid my balance in full. Lately I have been getting phone calls offering me reduced interest rates if I listen to their promotion. I hang up. If I never incur interest charges, why would I be interested.
But what really burns my ass is the notice that I get with my monthly bill telling me that they are changing the rules and that new terms, interest rates and charges are going into effect.
I've been told that my interest rate if I default on a payment, will be 31.9% interest. Do you realize how obscene that charge is? On the reverse side, if you have a savings account at the bank and they pay you 3% (try to get that on a savings account), it would take you 10 years to earn enough interest to pay off your penalty for default on your credit card. Talk about getting screwed.
Then to add insult to injury, if you pay late, any balance over $250 will get charged an additional $39. This is in addition to the 31.9% interest charge.
If you go over your approved credit limit (even if they approve it), yep, a $39 fee. This is addition to the interest charge of 31.9%.
Heaven help you if you make payment and the check bounces. I think they take your first born.
I realize that the credit card companies are just offering a service and that I have the option of not using the card. It doesn't change my opinion that people are being taken advantage of.
Beat the Devil (Credit Card Company) at his own game. Minimize the number of cards you carry. Pay all balances on time. Better yet, tear up your credit card (your deal with the Devil) and use cash. You have the power.
Have a Great 4th of July weekend.
Love,
Dad