Credit Card Debt: Avoid The Snares

It has been said a lot of times about credit card debt and although sometimes the words can be redundant, there are still many more issues that needs to be addressed.

We stress this mostly because time and time again, people with nice intentions of keeping on top of the credit card game end up falling victim to the snares these lenders have masked into their programs.

Bear in mind that credit card companies want you to slip up - that is the way they make money. Think you have a handle on all the ways the card companies can zing you? Here are a few of their not so obvious tricks:

Watch out for carrying balances. It is not uncommon for cards to charge 20% or more in interest. You knew that already, right? Well here’s the snare: Interest is usually called “finance charges” on your statements to lessen the impact of what you are really paying for. Finance charges doesn’t sound quite so bad right?

Fixed rates aren’t always fixed regardless of the terms and conditions you originally signed up for. By law, a credit card company can hike the rate by informing you 15 days in advance. That’s right - if they tell you 15 days ahead of time, it’s legal!

Remember that credit card companies make a lot of money on the cash advance game. There is usually a large finance charge for cash advances. Here’s the snare: Interest begins accruing as soon as you take the money out, not after the next statement closing.

Watch out for introductory offers! When you receive a credit card offer in the mail with a seemingly too good to be true low rate, it will likely expire in three or six months. Pay special attention to when and by how much the rate increases after the “introductory offer” expires. Many great card benefits suddenly vanish without warning once the teaser rate promotion expires.

Credit card debt is a legitimate problem source for most Americans. Being aware of the games played by the card companies can make all the difference in your ability to stay afloat in a sea of deception.