You've choosen:
INFORMATION CENTER
News and Articles about Credit Cards...
Read about Credit Cards before Apply!
News about Credit Cards
The cost of incurring high credit card dues
[12:00:00 AM Sunday, May 01, 2011]
Consumers have become more responsible in using credit cards over the last two years. Most of them are willing to bend over backwards to ensure their payments are made on time in order to prevent tarnishing their credit history. However, over 25% of the card holders still carry huge balances on their credit cards. According to one of the surveys conducted by the National Foundation for Credit Counseling in 2010, over eleven million people have credit card debts of over $10,000.
Huge credit card debts stay on for years. If the consumer pays off only the minimum required each month, then these dues continue to linger on for years on end. Michael Rubin, whose book “Beyond Paycheck to Paycheck” has gained a lot of popularity, says that a majority of the card holders do not realize the repercussions of taking a very long time to repay their credit card debts.
If a customer has over $2000 as dues on the card and continues to make just the minimum payments each month with an APR of 20.99%, then the time needed to repay the total due is almost 43 years. The interest paid off during this period will account to $9,797 which is over four times the total debt on the card.
The good news for card holders is that the CARD Act stipulates that banks should provide customers with a statement of how long it will take for them to clear their dues if they continue to make just the minimum payments. This will help increase the awareness among card holders and motivate them to clear off their dues at the earliest.
Comments not found
The Latest Articles
[October 26, 2011]
Just because you don`t have a rewards credit card, doesn`t mean that your credit card can`t reward you. According to a MasterCard survey, 55% of consumers don`t know the extent of the benefits that their credit cards offer.
[August 31, 2011]
Every adult likes to travel light. The convenience of shopping without carrying an enormous wallet is something this generation has taken for granted. Credit cards are also a huge status symbol. Every adult remembers the glee and joy he or she felt when they received their first letter from some credit card company offering them a card. It proved that they had indeed arrived.
[August 23, 2011]
Consumers are increasingly using their line of credit due to rising inflation and gas prices. This has been revealed by First Data Corp`s report called Spend Trend. Credit cards are being increasingly used to pay for daily necessities such as gas as well as other basic needs. There has been considerable rise in food and gas prices as well. This is a direct fallout of inflation, but income has not gone up substantially to keep up pace with the inflation.
[August 17, 2011]
While most consumers are rejoicing about the increase in the number of credit card offers today, there are a few who are skeptical about the number of rewards cards solicitations that arrive in their mailboxes on a daily basis. However, Bill Hardekoph, the chief executive of a leading financial website, has said that there is absolutely no cause for worry. The rewards credit cards are the latest trends by credit card lenders, both large and small, to increase the number of customers. Of the many rewards cards that are flooding the market today, here are a few that are worth a thought.
