The Nightmare Known As Credit

Author: Irene Miller

Author: Irene Miller

You spent the weekend payday taking a leisurely stroll in the mall, window-shopping arm in arm with your boyfriend or girlfriend. Many people pass you by, and do not give them a seconds notice. When a congenial-looking gentleman with the widest smile, and wearing slick backed hair and gray suit approached you and said, Would you like to buy a flat screen TV, maam? But before you do, you have to fill out this membership card and pay this amount, in order to avail of the latest flat screen technology.

As it turned out, that membership card is a credit card. Such is the modus of credit card companies to lure you into buying their credit cards, and then trap you into buying anything you want using a small piece of shiny plastic. Needless to say, the same plastic card could just be your worst financial nightmare.

Credit card companies devise numerous schemes and strategies to trick customers into going on a shopping spree and making unnecessary purchases using their credit cards. Thus, credit card users must be discreet in their buying habits, especially shopaholics. Many customers have become fallen victims by drowning in credit card debt. One reason for this is the exorbitant amount of interest charges on credit cards, especially for high risk clients, or those individuals most likely to fall behind their monthly payments. Banks such as MBNA issues interest rates that run from 14.9 per cent, up to 25.9 per cent for its high risk customers. For those who do not religiously pay their credit card purchases, they can be in danger of running up on credit card debt, mainly due to interest charges.

Another way in which credit card companies mount interest charges is thru cash withdrawals. This affects mostly tourists or travelers to other countries, who ran out of cash on hand, and have to withdraw in a foreign land for some emergency moolah. This is especially true for those who ran out of cash at home, and needs to withdraw petty cash from their credit cards. The problem with this is that some companies introduce charges for each cash withdrawal, and then mount added interest charges for late payments. This leaves the customer financially dry.

It is thus important to monitor such changes in ones credit report to look out for bad credit scores. An online credit repair guide provides information and how-tos on online credit repair. Be in the know about ones financial state and avoid future financial crises in the future.About the Author:

Irene Miller is a teacher. She loves words and plays with them.

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