Video is someone getting harrassed by a credit card company, and the article is about how to avoid that happening to you.
Credit cards are really powerful tools when used properly and with respect. Customers can usually start out with a credit limit of $500. Once they establish a record of making their payments on time and paying their balances off when required, the credit card companies will usually increase these limits.
It is quite common to have a $5000 dollar limit on a credit card, while some business accounts will have much larger limits to account for higher transactions. Movie stars have been known to have an unlimited balance on their cards.
The trick to all credit cards, regardless of the limit you have and the other features you have with the card, is to pay your balance off each and every month. If you run an unpaid balance at any time, most credit card companies are going to charge interest on the unpaid balance and the interest rate will be much higher than normal personal loan rates.
In some cases the credit card company will charge you interest from the time that the item was charged to the card. Consumers can end up paying a great deal of interest. If you have only paid the minimum payment, you may find that the majority of this payment went towards the interest charged for the month and very little actually reduced the balance on your credit card.
When you receive your statement, among other information on your statement will be the due date. This is the date the credit card company must receive payment and credit it to your account, otherwise interest will be charged. Notice that they must receive it before or on this date.
If you make your payment on the due date and send it by mail or send it electronically, they will not receive the funds for a few days and the funds will not be credited to your account. Technically you are over due and you will be charged interest on the unpaid balance. Always try to send the payment a few business days in advance of the due date, taking into account weekends and holidays.
If for some reason you are unable to make your payments on time or you need to only pay the minimum payment for a few months due to cash flow issues, consumers may want to consider a small personal loan. Personal loan interest rates are usually much lower so more of your money will go towards reducing the loan when you make a payment.
Often the same lender that provided the credit card to you will be happy to provide you with a personal loan as well. Consumers will find this approach quite convenient since payments are processed more quickly.
In summary try to pay the full balance off on your credit card on or before the due date to avoid high interest rate charges. If you will not be able to pay the full amount for a few months, consumers can also consider a small personal loan at a lower interest rate as an alternative to paying high interest rates on their credit card.
When You Default On Payments….
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