subject: Credit Card Company Transparency - What Things A Credit Card Company Does Not Want You To Know? [print this page] Credit card is ever expansive type of loan through out the history of our country. In order to increase the profit, many companies or financial institutions started issuing credit cards in the market. The criteria of taking card was so simple and easy for everyone and on interesting thing is that it is issued without any repayment securities or mortgage. There are few things that credit card companies do not want you to know because these things will affect their profit ratio. Some of them are as follows.
First of all the concept of minimum amount is unable to understand. If you are keen to understand the term minimum amount then you will find it that it is the only profit of credit card company which you are paying every month and it is not making any affect on your original outstanding amount. Many people continuously pay minimum amount for many years but their original amount remains still. This reason not only leads a consumer to stop paying back but also develops a thinking of insolvency. Minimum amount is divided in some parts as first part is some percentage of your outstanding amount, the second is markup rate and the others are different kind of charges. Now when you will keenly observe in your previous bills, you will find that the portion you are paying against loan is very less as compare to markup and charges. If a consumer understands this thing, he may not take any interest in paying back monthly minimum amount and this will decrease the profit of companies.
The second most important thing a company does not want you to know is about debt settlement companies. The function of debt settlement companies is to make an affective negotiation deal with the credit card company to get prominent reduction over outstanding balance. A credit card company would never like to issue any sort of reduction over receivable amount so they do not like consumers to go towards debt settlement companies. But it is to state here that this is a legal right of a consumer to go towards their relief. It is also proven that those consumers who contacted the settlement experts timely, they got relief.
Debt settlement is a legitimate alternative to filing for bankruptcy. Most people are able to eliminate at least 50% of their unsecured debt when the process is complete. There are also other debt relief options available which is why it would be wise to speak with a debt relief specialist.
Credit Card Company Transparency - What Things A Credit Card Company Does Not Want You To Know?
