Credit is cheap these days, unless you're talking about credit cards.
The average credit card interest rate for people with fair credit is a whopping 21 percent, according to financial research firm CardHub. That was almost 4.5 percent higher than a year earlier.
While interest rates for other types of loans, such as mortgages and auto loans, remain near historic lows, consumers haven't seen the same type of benefit when it comes to their credit cards. The reason? For one, credit card debt is unsecured, meaning there's no asset to claim if a borrower can't pay, which raises a lender's risk and pushes up rates.
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Part of the Obama regime's regulations to make everything "fair & equitable" raised my interest rates from under 5% to more than 12%. I immediately reduced my credit card debt several thousand dollars. Apparently quite a few others did the same thing as total debt dropped over $638 Billion; that's six hundred thirty eight Billion dollars that was sucked out of the economy so that the late payers, dead beats, and other irresponsible credit users wouldn't have to be responsible for their abuse.
ReplyDeleteIn the mean time I have one card with a rate of 7.79% and one at 8.24%. The rest are in double digits. Because I've reduced the total debt so much I pay less total interest annually than before. That means that the credit card companies are receiving less income from me and probably from other borrowers with good credit. which means that those with not so good credit are sharing the cost of the abusers.
Altogether this shows yet another example of how Obama has sponsored programs right out of the gate drain and stagnate the economy. His stimulus package did nothing except waste money; Cash for Clunkers boosted foreign car sales, eliminated affordable vehicles for those struggling financially, and put many used car dealers and parts suppliers out of business. and of course he is fighting Keystone with all the power he can muster because it would boost employment, improve the economy, and lower prices.
It will take a long time to overcome the damage his policies have done to the economy.
If they find out you don't need their money, they will be calling you, offering you no fees and interest rates in the single digits. People really need to be careful they don't get caught in the credit card trap. It's a legal way to take advantage of people.
ReplyDelete" he is fighting Keystone with all the power he can muster because it would boost employment, improve the economy, and lower prices."
ReplyDeleteWhat's going on with the Keystone is similar to what's going on in NV with Bundy. The Interior Dept is stealing back all the mineral, gas, etc leases people have been paying on for years, generations even, in the pipeline's route. Of course then they will be given away to whomever has the most to offer the democrat politicians and THEN the Keystone pipeline will become a reality.
I have a FICO hovering around 720 thanks to a couple years of serious credit repair work. I still have cards that won't budge their 16% - 24% interest rate. It's obscene.
ReplyDeleteAt least now I'm getting prime offers. While I can't afford to lose accounts in good standing right now, I can keep a 0% card open all the time. Every 12 months, I pick up a new one and transfer over my diminishing balances. It's saved me a lot of money over the last year, and I'll be paid off next year. Soon I'll have to slowly close the accounts with high rates, and I plan to open a new account with the lender at a later date offering 0% or bonuses for running money through their cards. It's the only way to get money to work for you these days, as savings accounts are a joke.
If you're paying high interest rates because of poor credit decisions, it's not a hopeless cause. You don't have to be in the position of giving so much of your earnings to the banks. But you have to be willing to actively improve your credit situation. Visit creditboards.com and learn how to deal with collection agencies, understand and clean your credit report. And head over to myfico.com to learn what it takes to get a good credit score. It's a game you have to play, but that's the way the world works these days.
These 0% credit cards offers are great for the consumer and a killer for the vendor that accepts them. I recently opened a new business and take credit card purchases. The average rate that I pay is 1.59% for cards swiped except the 0% or "Rewards" cards. I get reamed for the interest that the card holder thinks is free. So I figured that out real quick and have to add the cost on to everyone's bill. The credit card companies do nothing for free - everyone pays your interest.
ReplyDelete