Credit Card Issuers come under fire

Connecticut’s Senator Dodd recently conducted a hearing in credit card practices and they affect consumers.

Facts that came to light:

1. Credit card contracts are the only ones in which the price you pay changes after the purchase has been made.

2. Credit card companies consider people who pay off their balances in full every month as “deadbeats”.

3. Credit card companies make more than $465 million PER DAY on just late fees!

4. Universal default is a common practice that needs to change. Universal default results in large jumps in your interest rate even though you might be entirely current in your payments.

5. The minimum payment amount on your bill many times is insufficient to pay on the balance. In fact, a $5,000 balance on a credit card paid at the minimum payment will take more than 7 years to pay off, assuming you never miss a payment AND the interest rate never changes.