Credit Cards Gotchas: New and Improved Tactics for Accelerated Profits

Credit card companies will be making it harder for debtors to eliminate their credit card debt in 2007. Over half of Americans carry credit card debt averaging a total of $10,000 each for a grand total over $800 billion.*

(PRWEB) February 15, 2007 -- Debt counselors are now getting calls from confused and desperate consumers spouting interest rates of 27% to 33% who are looking for credit card debt help.

"Consumers are really being hit hard by outstanding credit card debt and some of the interest rates verge on being usury," says Howard Dvorkin, founder of Consolidated Credit Counseling Services, Inc. "People need to have credit card debt terms spelled out for them in easy to understand language. More than half of consumers who carry credit card debt want customized disclosures on their monthly bills explaining how many years it will take to pay off the card if only the requested minimum payment is made so that way they have a clear idea of how long it will truly take to get out of debt," he continued.

Consumers are really being hit hard by outstanding credit card debt and some of the interest rates verge on being usury

Late fees make up nearly 70% of the 17.1 billion dollars in fees collected by credit card issuers. Many credit card companies are located in states that have no limits on interest rates and fees. Numerous banks are demanding $39 late fees, fees for same-day payment, payments made by phone, and for usage overseas, and the kicker is, that instead of declining a transaction that will put you over your credit card limit, they approve it and smack you with a "courtesy" fee. Yes, thank you very much.

There is no end to the sneaky methods credit card issuers will utilize to entice you to spend more money. Believe it or not, one-third more people increase the amount they charge if the purchase doesn't require a signature. This is according to a MasterCard study. By not requiring a signature for charges of $25 or less, consumers are reaching for their credit cards instead of paying with cash. And because your credit card is so handy why not add a few extra things to the bill; it's not even $25, right? Before you know it those small charges will add up.

Remember when earning rewards was a great way to receive cash back or airline miles? In 2006, American Express removed its double points reward system for everyday purchases on their credit card. And Citibank reduced its cash back on purchases from 5% to 2%. All in all, consumers need to be vigilant and careful with their credit card spending and they must read notices and bills so they don't end up with a "gotcha!"

Please visit http://www.consolidatedcredit.org/?PartnerID=1278 for more information about credit card debt.

Consolidated Credit Counseling Services mission is to help people end financial crisis and solve money problems through education and professional counseling. Consolidated is an industry leader providing credit counseling and debt management services throughout the United States. Consolidated is a non-profit agency that has helped thousands of individuals and families deal with life-altering credit, debt, and financial issues.

• According to U.S. PIRG, the federation of state Public Interest Research Groups (PIRGs).

Post Comment:
Trackback URL: http://www.prweb.com/pingpr.php/WmV0YS1FbXB0LVNxdWEtSG9yci1NYWduLVplcm8=

Trackbacks/Comments Received

Credit Cards Gotchas: New and Improved Tactics for Accelerated Profits from Small Business Credit Cards on Apr 9, 2007

Consumers are really being hit hard by outstanding credit card debt and some of the interest rates verge on being usury,” says Howard Dvorkin, founder of Consolidated Credit Counseling Services, Inc. “People need to have credit card debt te...

Credit Cards Gotchas: New and Improved Tactics for Accelerated Profits from Small Business Credit Cards on Apr 9, 2007

Consumers are really being hit hard by outstanding credit card debt and some of the interest rates verge on being usury,” says Howard Dvorkin, founder of Consolidated Credit Counseling Services, Inc. “People need to have credit card debt te...

Post Comment:
Trackback URL: http://www.prweb.com/pingpr.php/WmV0YS1FbXB0LVNxdWEtSG9yci1NYWduLVplcm8=

debt credit debt management credit counseling credit card debt credit card help consolidated credit counseling services credit card interest rate apr financail literacy

Bookmark -  Del.icio.us | Digg | Furl It | Spurl | RawSugar | Simpy | Shadows | Blink It | My Web