How the Credit Card Industry Makes You Their Slave
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I found an excellent investigative video “Secret History of the Credit Card,” that investigates an industry few Americans really understand. In this one-hour report, various techniques are uncovered that are used by the industry to earn record profits and get consumers to take on more debt.
There are 2 big threats regarding credit cards:
- Credit card companies can change your rate without any restrictions by notifying you only 15 days in advance. This means that they will allow you to gather a decent amount of debt at the introductory 0% rate and then change it to 35% if they want to. By that time you already have so much debt on the card that it is impossible to pay the card off in 15 days. So you are basically forced to pay the higher rate.
- If you are overdue with any other payment (car, house, loan etc) the credit card company will immediately know this and because of “elevated risk” they will raise your rate. Even if you have never been late with any of their payments
A credit card is the only product in America which’s price(the rate) can change after you have bought it
One Response to “How the Credit Card Industry Makes You Their Slave”
By Cheryl on Feb 23, 2008 | Reply
The credit card company does not make any responsible person their “slave” without your permission. People just do not have any sense of financial responsibility and they blame others.
Consumers must first realize that credit should only be used for emergencies or if they have the finances to pay the bill in full within 30 days. Credit should never be used for food or entertainment that cannot be paid for within 30 days.
Every time you swipe that card, you ARE taking out a loan.
Get a clue people. Live within your means and freeze the credit cards. Learn to say NO to things that you absolutely cannot live without and say NO to impulses.