Almost everywhere you go these days, people are trying to get you to open up a new line of credit. It is very tempting thought. Imagine being able to buy anything you want from your favorite store. It seems innocent enough too. Especially with a small line of credit that can be paid off quickly. Never open up a new line of credit.
Credit accounts with low limits are easy to keep under control. A card that has a thousand dollars on it can easily skyrocket until it is completely out of control. It starts with higher payments. The trick to keeping a credit card under control is being able to pay more on it. This is often hard to do on a higher account. The only chance of getting the amount down is paying extra. If not, thousands of unnecessary dollars may be spent in interest fees.
So think twice before buying new dining room table set on credit. First thing you know, you need a new refrigerator and there you are. You suddenly have a high balance on your credit card.
Before you purchase anything on your credit card, take a look at a recent statement. Find out what the interest rate is. What you thought it was is not always the same thing. You may be shocked to find that the interest rate has gone up on some of your accounts. Paying attention to the APR (annual percentage rate) is very important. If you knew that some of your innocent accounts are charging you 30% interest, you may forget about having that new appliance. You might decide to buy a used appliance.
Do your best always to pay bills on time. Sears is one example of a company that enjoys charging you a small fee of $39.00 for being late. Mobil is another charging the same amount.
A couple of late fees can shoot that balance sky rocket high! When that happens, you will be using your rice cookers instead of eating out. Pay close attention to those bills.
Thankfully, agencies are finally cracking down on the unfair and corrupt practices of credit card corporations. Their crooked ways have gone on long enough! It is about time that we all learn that having lines of credit is not great honor. We have been robbed!
If you take a close look at a recent statement, you will notice some changes. You will see a diagram telling you how long it will take to pay off your account. It also shows how much extra money you will have paid in interest. If you owe sears $1,692.00, the graph will show you that it will take 21 years to pay this off! This is without any additional purchases. This is by paying the minimum. This does not include $39.00 late fees you are bound to get! Sears also has to tell you that it will cost you $8,166.00 to pay off that $1,600.00 furniture set!
When you know these facts you will be very angry. You might even lose your credit. So next time, when a cashier invites you to open a new account, smile smugly and say, No, I would not like to open a new account! I will purchase my dining room table sets with cash.