Credit cards are a major part of American commerce. People try to use credit cards as little as possible and some will try to do without credit completely. This is almost impossible. Emergencies arise that require the use of credit and retailers encourage the use of credit cards with special deals. Some of the special deals are traps that will threaten an innocent victim’s financial wellness.
The Nature of the Beast
Retail stores want people to use credit cards for a very simple reason: consumers will purchase more with plastic than if they had cash in their pocket. Some of the deals include offering credit cards at zero interest rate for a specific period. Other deals involve substantially reduced credit costs. Some credit card companies attempt to persuade people to consider a consolidation loan through the credit card. That latter one is deceptive because it permits a person to put a large amount of debt onto a single credit card in return for a significantly reduced rate of interest.
This all sounds attractive, but the devil is in the details. Not everyone is willing to read the fine print of some of the offers. For example, failure to make a payment on a consolidation loan will result in a significant interest charge. Other deals require that a given amount of money must be charged on the card or the lower interest rates will not apply. People get in trouble when they don’t understand the terms and conditions of a credit card. A person can end up in deeper trouble. Continue reading