Bad Credit Credit Cards – Buying Christmas Presents on Credit?
Posted on | December 14, 2009 | No Comments
Many consumers will buy Christmas presents on credit cards this year even though surveys have said they won’t. If you have a bad credit credit card and you plan to put a lot of money on it this holiday season please be aware of the fact that you will be paying interest for quite some time. Just because you want to buy that extra Christmas gift or two for your friends and family and might not be worth it because you will put yourself further in debt in 2010.
Many bad credit credit card holders are finding that the interest rates on their credit cards have greatly increased. Not only have the interest rates on bad credit credit cards increased they have also increased on borrowers who would not even be considered bad credit. The credit card industry has greatly changed after the credit crisis as they are trying to find ways to produce a profit.
One of the quickest ways for these companies to make a profit is to increase the rate on all the cards which in turn will give them more money. The higher the interest rate the more money these companies will make in the long run as borrowers will end up paying much more in interest. These credit card companies have seen just how difficult it can be when just a few borrowers do not pay their bills.
Unfortunately, it is very hard to lower the interest rate on your card unless you have financial leverage. What are the only ways to get a lower interest rate on a credit card is to call the company and threatened to close your account. Unfortunately many credit card companies are allowing consumers to close accounts because they do not want to give people lower interest rates.
If you have been a cardholder for several years and you have made all your payments on time and in full credit card companies do not want you as a customer. You will provide them very little profit is they cannot charge you interest on the amount of money you are spending. This means that you are disposable and they do not mind having you close your own account.
If the current economy and your financial struggles have gotten you down make sure to check out the inspirational blog My Life After Retail. The blog is an account of the journey to find peace of mind and happiness in today’s society.
Author: Heather Best
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