July 19, 2009
Fine Print Follies I-What Credit Card Co’s don’t want you to ‘Know-tice’
"Skipping the Fine Print can lead to Ticking Time-bombs"
When it comes to dealing successfully with your credit card debt, NOT being familliar with the credit card companies fine print can really cause you some undesirable results. So, within this series “Fine Print Follies” I will highlight some of that ‘Tiny Text’ to bring it to the forefront where it should be in the first place-not lurking in the shadows of pages 7-12!
Many of us have experienced it, one day, we are keeping up with our credit card payments, even knocking them out in one fell swoop-maybe two. Then, setbacks come, not just one, but a series. Now you find yourself struggling, just keeping up with the minimum payments. Next thing you know, you are no longer getting the payment in (as little as it is) on time. Now you begin the downward decent! This begins a whole list of domino-like consequences and potentially financially fatal ”time-bombs”. Here’s where the credit card companies really “blow you away” - and all that fine print now suddenly seems VERY important!
“Would anyone in their right mind sign a contract that says, ‘Any term can be changed at any time for any reason, including no reason?’ Would you be insensed to know that anyone who’s signed up with a credit card company already has?”
According to an article from Bankrate.com, published May 2009,
“2009 Credit Card Study: The fine print”, by Ellen Cannon
“Any time, any reason; universal default, etc.: American Express; Bank of America; Chase; First National Bank Omaha, or FNB Omaha; and US Bank come right out and say it: We can change your annual percentage rates, or APRs, at any time for any reason.”
And, regarding Rate Increases: “All issuers will change your rate if you violate any part of the credit card agreement, but some are more forgiving than others.”
Well, if that doesn’t get you running to your files to look at the fine print of your credit card bills, I don’t know what will. However, before you break a sweat, many of these credit card companies typically will not raise your rates [significantly] until you violate your agreement in some way or another (i.e. late payments), or the market makes a significant shift. I hope this encourages you to take any credit card debt seriously, and don’t be late, or get behind or you could face some of your own ‘fine print follies’.
I will address additional Fine Print Follies in future postings, so check the tags or categories for additional postings. If you should already find yourself deep into credit card debt, and would like some options for solving your debt issues, feel free to drop me a line at debtsolutions2009@gmail.com
