Credit cards can be wondrous tools but it had to be used correctly. To do that, consumers must understand the whole nature of the plastic cards.
Miami, FL (PRWEB) June 21, 2013
National Debt Relief, the leading provider of debt settlement services puts the limelight back on credit cards. On June 4, they published the article entitled “5 Little Known Facts About Credit Cards You Need To know.”
The article tackled the very controversial nature of credit cards and how some facts can affect the overall debt amount of consumers. In some instances, it makes the debt even worse than it already had become.
The debt relief company does not completely bash the cards. In fact, they admit that “credit cards can be wondrous tools” but it had to be used correctly. To do that, consumers must understand the whole nature of the plastic cards. This is what prompted National Debt Relief to publish the 5 facts that they believe consumers should know.
Here are the 5 facts that were discussed in the article.
The first fact is credit card companies have every right to raise their interest rates whenever they want to. These cards are notorious for having high interest and to have that increase further will also grow your debt balance. The article states that the first year of the cards is usually the only time the rates are safe from having a high increase. The article also mentioned that even if the consumer is a great card holder (e.g. pays on time), they will still increase rates if they feel like it.
To counter that first fact, the article revealed that consumers have every right to refuse that interest increase. This is fact number two. Card holders can actually write to their creditor to negotiate that they keep the old interest rate. There are three things that can happen. The card company can either lower the credit line, increase the monthly payment of the consumer or close the account. In case the creditor closes the account and the consumer agree that it is the best course, they should be given around five years to completely pay off the debt. Whatever is decided, the debt relief company warns consumers to put everything in writing.
The third fact involves the protection that these cards can give. The article is quick to say that this is not for all cards though. It includes purchasing something that does not arrive or receiving something that was not what the card holder ordered. Theft through credit cards are easier to track than stolen cash so that in itself is a protection for consumers.
The fourth fact that the article discussed involves fixed rates. Fact is, it may not be fixed at all. Or at least, the article notes that it will not stay fixed and that it can convert into a variable in the future. Of course, before this can happen, the law requires card companies to provide consumers with a 45 days notice.
The last fact that the article revealed is all about the balance. Sometimes, card companies do not impose a spending limit. In some cases, there is a limited amount that can be forwarded to the next month. The article admits that this can be confusing so they urge readers to read the fine prints on the credit card’s terms and conditions.
National Debt Relief hopes that through this article, consumers will be more cautious about how they use credit cards. The debt relief company have already worked with thousands of clients who are mostly burdened with credit card debt.
To read the whole article, visit National Debt Relief or call 888-703-4948 to talk to an International Association of Professional Debt Arbitrators (IAPDA) certified debt expert.