The,Credit,Card,Offer,One,day, finance, share, loan The Credit Card Offer
If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
One day I got a call from my credit card company asking meif I would like to increase my credit limit by borrowing upto $9000 at their special rate of 15.9%.The operator stated, "Your credit card rate will then be alow 15.9%. How much would you like to transfer today totake advantage of this offer? Do you have any high interestloans you would like to pay off and reduce your payments?"The previous day I had called them to get two bogus latepayment charges taken off my statement. I also had to getmy interest rate lowered back to my usual rate rather thanthe "penalty rate" (22.9%) they charge to anyone who islate, misses a payment or goes over their credit limit.Wondering if my rate got changed back to my usual rate, Iasked the operator what my current rate was. She said thatit was at 12.9%, which was my usual rate for this card.I do carry some debt on other cards (it helps with my creditrating to be making regular payments) but all the other debtI have is at lower rates than this card. I mentioned that Ihad no other debt that was at a higher rate than what shewas offering.She then replied that I could just take the money as a cashadvance and do whatever I wanted with it.So I asked her if I understood correctly what she wasoffering. "So you are offering to raise my interest rate ifI get further into debt by getting a cash advance?""Yes, you can have up to $9000 and do whatever you like withthe extra cash," she replied. I was amused that she saidthat I could "have" not "borrow" the money and it would be"extra cash" rather than "additional debt". But after all,she is in sales and the words "have" and "extra cash" aremuch more enticing than the more realistic alternatives -"borrow" and "additional debt".I politely told her that I was not interested in raising myinterest rate or borrowing more money, "but thanks anyway."I then wondered how many other people would jump at theopportunity to pocket a quick $10,000 at the "low" rate of15.9%.I was also amused that she encouraged me to pay off my highinterest debt with this money. Well, to my standards 15.9%is high interest debt. Granted it's not the 24-25% chargedby department stores but still it was more than I wascurrently being charged on any of my other cards.Shouldn't an offer that would appeal to me be one thatoffered me money at a lower rate? Her offer seemedbackwards. She was trying to entice me with the vision of"extra cash" in my hand to do whatever I would like.I took a moment to do some financial math (the mostimportant kind) on this offer and found that if I had acurrent balance on that credit card of $4000 at my currentinterest rate of 12.9%, I would be paying about $43 a monthin interest charges.If I had accepted her offer for an additional $9000 at 15.9%(and I suspect that my regular rate of 12.9% would haverisen to the 15.9% rate also), I would be paying about $172a month, exactly 4 times what I am currently paying. If Imade a payment of $200 a month to pay off this debt, I wouldbe paying for over 12 and a half years.What I learned from this experience is that I should getinto the credit card business. Maybe I'll check on somebank and financial institution stocks today. With offerslike this they must be making money.Once again, those who understand interest earn it, those whodon't, pay it. Article Tags: Credit Card, Usual Rate
The,Credit,Card,Offer,One,day,