|
Author: Charles Essmeier Article source: http://www.linkgeneral.com/. Used with author's permission.
Americans know all too well how much it costs to use credit cards. The average household in the U.S. now has nearly $10,000 in credit card debt. Carrying such debt is fine, as long as you realize that there are costs associated with it. The interest rates aren't particularly low and the fees charged for paying late or going over your limit can be steep. Late fees of $39 aren't uncommon, and they are assessed if your bill fails to arrive by the due date, even if it was delayed in the mail.
The credit card companies have been listening to consumer complaints about expensive late fees and several of them have responded. American Express and Citibank have both recently introduced cards that are both advertised as having no late fees. There may be a twist involved; Citibanks's Simplicity card carries no late fees as long as you make a purchase each month within the billing period. But no late fees? Aren't late fees the card company's way of making sure that you pay your bill at all? What happens if you don't pay your bill?
That's where the fine print comes into play. Your agreement requires you to pay your bill on time. With the Citibank card, paying late carries the usual fee of up to $39 if you pay late and haven't made a purchase during the billing period. If you have made a purchase within the billing period, but you have still paid late, Citibank may, at its option, raise your interest rate. In fact, they can raise your interest rate as high as 23.99% above the prime rate. American Express will also raise your interest rate if you pay late twice in a year, though not as high as the 30% or so that Citibank will charge.
With interest rates potentially rising to nearly 30% and applying to your outstanding balance, you'd be much better off keeping an existing card and paying the late fee than the hundreds or even thousands of extra dollars you'd pay on a large balance after the penalty interest rate is applied. Of course, you can avoid both late fees and interest rate hikes by simply paying your bill on time and maintaining a small balance or no balance at all. If you want a card with no late fees, you probably already have one. Don't pay late, and there is no fee. ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation, establishing credit and credit counseling.
Abe Lincoln: An Extraordinary Leader
Perhaps noted as one of the greatest United States presidents of all time, Abraham Lincoln's early life may not have reflected his potential greatness. He fail...
Ten Day Plan to Online Sales
You have a product - and ten days to make money. What do you do? Take advice from this online expert.
Blackjack Card Counting Made Easy
By using computer trials, it has been proved mathematically that certain cards are favourable to the player and others are favourable to the dealer. Depending u...
From Friend To Boyfriend
In this article I discuss a major problem that many men have with women, getting stuck in the "just friends" stage. Learn how to get over this and get any inter...
Built Camera Cell in Phone
The built camera in cell phone was not long ago the newest technology advance in the cellular phones field. But nowadays the built camera in cell phone is offer...
AddThis.com Social Bookmarks Increases Your Viral Marketing!
AddThis.com is a fairly new social bookmarking website that has all the necessary tools to allow visitors on your site to bookmark your blog feed, posted articl...
Pregnancy Symptoms and Signs
How can you tell if you are pregnant? There are a number of signs and symptoms to watch for. Chances are you will only experience a portion of the symptoms. Eac...
What is a Serving Size?
Have you ever wondered how much a serving really is. Well, pull out your box of raisin bran, grab the milk a bowl and a spoon. Now fill up your bowl with cere...
How Not To Lose Weight
Who really wants to lose weight? None of us, right? How much fun is it to be on a diet, deprived of all you really want and need when there is a McDonald's, K...
Preventing Identity Theft and Credit Card Fraud: How to Protect Your Credit Information
According to a recent poll by Experian, one in five Americans has reported they have experienced some form of identity theft. If it happens to you, and your ide...
Time Management - Finding Some Personal Time
It's too easy to put off our aspirations and say:'Someday, I'll learn to play the piano" or "I'll get that diploma one day and get out of this dead-end job!". P...
How To Use Your Current Customers
Marketing guru Jay Abraham (takes $3000/hr for just one consultation) gives us a beutifully exemple.
Taps; Piping Military Honors: A Ceremonial Guide for Highland Bagpipers
It has become increasingly popular for U.S. military veterans and their families to specifically request a piper to not only pipe for a funeral, but to pipe Tap...
The World is Not Enough - Calling for a More Ethical Approach to Personal Finance
With the success of the Live 8 and Make Poverty History rallies in bringing ethical awareness to world finance, the public needs to turn the spotlight onto thei...
Dont Pinch That Pimple
It's everyone's worst nightmare. Waking up the day before a special event to discover a big, red pimple baring itself for all to see right on your face!
No Credit? – You Will Need a Bad Credit Loan
So you have never taken out a loan? You don't have a credit card and you don't have a mortgage? You always pay cash? You're a student, a recent widow, a divorc...
7 Great Ways to Market Yourself and Your Business to Help Increase Sales
Do you own a business and need ideas on how to market your products or services to your customers? Well, the one thing that every business owner needs to know i...
Wedding Is Time For Everyone To Mind Their Manners
Did you hear the one about the groom that got so drunk the night before his wedding he passed out during the nuptials?
6 Ways to Keep Things Simple
We can have greater success with our Clients when we make our work processes and agreements simpler and more elegant. This article will give you ideas for maki...
So You’re Hiring a Web Designer—You Have the Right to Demand these 7 Perks
Whether you're hiring a designer who has created 10 sites or 1000 sites for other businesses, there are 10 things every website should do for you.
Home Based Business: Your Ultimate Tax Shelter
Starting and operating your own home based business is
the ultimate tax shelter.
Get Meeting off To a Great Start
When asked what part of their job they find a major time waster, many will answer loud and clear... MEETINGS. In a recent survey of business leaders, ninety pe...
Creating Quality Websites
Websites, there are literally billions of them out there in cyber-space. How many of them do you go to and just think this is boring, bland, or hard to use? It ...
The Cell Phone Store
The cell phone store gives you all the newst phones, reviews, faceplates, extras and lots more!
|
Print this page