I just received a notice today telling me my credit card company is charging me in the upper 20% for the "use" of my card. This is an increase from a 0% interest rate given if I paid my card off in 6 months. Stupid me. I did not pay it off in time. Now the devils are at the door. Luckily, I do not owe much on the card and only have this one card.
It made me think of the countless people having trouble with credit cards and their high interest rates. It can truly wreck someone. It can wreck a marriage, friendships, nerves, bank accounts, etc. And the companies could care less. Once they suck you in-like drugs-they are there to hammer you. Granted, each person has to show responsibility over his or her life. But the credit card companies never help in such a pursuit. Charging people 17%-28% interest on a card is just plain low-down and another problem of a "see-no-evil" capitalist system. A caring government would simply set a limit on how high a company can charge.
That not being the case, a person must really be diligent when it comes to credit cards. A great deal of false information is put out so people can stay in debt forever and make the very few insanely wealthy at the expense of the many. Author and radio-host Dave Ramsey is one guy to follow when it comes to this particular area of life. Ramsey is interesting because he was a millionaire before he hit the age of 30 and lost it all. He then re-built his worth to millionaire status but went through hell for a while. His ideology? Dump your credit cards for good. Everyone of them. Use your debit card instead which is real money and not borrowed at interest. Everything from airlines to car-rentals accept it. Put money back into your own pocket and not into some cretin who could care less if you are destroyed by debt.
It can be tough at times but you really do feel much better when you take your own money out instead of the "fool's gold" offered by credit cards. It allows you to practice a great deal of discipline and not into reckless spending sprees where the payback seems to be never-ending. And don't you hate those phone-calls from the zombis that represent these companies? Yuck.
Also, it is good practice to "bust the chops" of these companies. Urge your credit card company to lower your interest rate. Call, write or meet with a congressman, senator or local representative to make sure the company is not price-gouging(they always are but what is the limit?) Contact consumer advocate groups, etc.
As is always, when there is "never enough" money to be made, bad things always follow. Credit card companies are among the worst offenders of the never enough philosophy. Try to stay clear as much as possible. Now I have to go pay this one last darn card off.
Robert Carberry is a freelance writer from New York