Even if the card is not used, the remaining balance will accrue finance charges because of the interest rate.
Miami, FL (PRWEB) September 23, 2013
Credit Card Consolidation Loan continues to provide their readers with tips that will help them be better credit cardholders. In their latest article post this September, the debt relief website discusses how knowledge of credit card interest rates will help consumers avoid debt.
Entitled, “Avoid Debt: Know The Credit Card Interest Rate”, the article begins by discussing how the interest rate of credit cards are usually the main culprit in the accumulation of this debt. It has the highest interest compared to other type of debts.
The article then give readers a definition of the interest rate. It is also referred to as the Annual Percentage Rate or APR. This is the main source of profit for credit card companies. And as much as creditors love this, consumers hate it because it grows their balance. Even if the card is not used, the remaining balance will accrue finance charges because of the interest rate. The article states that this is the reason why this is a dangerous debt to have.
The article explains that the interest is what the consumers get in exchange for the creditor’s money to use on purchases they want to make. Even if the consumer does not have cash, they can still acquire products through credit cards. This is where the danger brought about by interest rates must be understood.
Credit Card Consolidation Loan explains how credit cards allow installment payments but any balance carried over the next billing period will accrue interest. Not only that, the longer it takes for the consumer to pay all the debts and the higher the interest rate, the bigger amount they will waste in the process. The article even points out that by the time the purchase is completely paid off, the product already depreciated. That makes the money wasted even greater.
The article reveals that creditors also have the right to change the interest rate of a consumer - even if they were never late on their payments. Credit Card Consolidation Loan tells consumers that they also have the right to refuse this change. The creditor can then decide if they will allow the consumer to close the account or keep the old rate.
The article also provide consumers with specific suggestions on how they can remove the credit card interest rate problem. Here are the three suggestions:
1. Stop using the credit cards.
2. Pay within the grace period. The article explains that when the consumer pays the full balance within this timeframe, they will not be charged with interest. This period is the time between the purchase date and the due date on the credit card bill (where the transaction is included).
3. Use balance transfer credit card. This is a type of debt relief program where the consumer gets a new card that is offered with zero interest rate for a limited period. The consumer is encouraged to transfer the balance of their high interest cards to this new account and pay all or a significant part of their balance during the promo period.
To read the whole article, click on this link: http://creditcardconsolidationloan.org/avoid-debt-know-the-credit-card-interest-rate/. Visit Credit Card Consolidation Loan to learn more about credit card debt, debt relief and debt consolidation loans.