Credit Card Debt Trap - Sneaky Little Tricks Credit Card Companies Use To Keep Increasing Your Debt (Part 2)

Will This Credit Card Debt Nightmare Ever End? Yes!
Every week, countless Americans wake up and find themselves in the midst of a cleverly laid financial trap called credit card debt. It happens so subtly, most people never see it coming; that is until it’s too late. The next thing they know, they’re receiving scary debt collection letters and calls from gung-ho debt collectors, threatening to freeze their bank accounts, garnish their wages and otherwise take them to debtor’s court. For some people, the pressure from the credit card debt becomes unbearable, forcing them to consider amongst other things, bankruptcy. No matter where you are in terms of credit cards and debt, you had better learn the credit card debt traps and most importantly, don’t get caught in them.

Credit Card Debt and The Increasing Interest Trap
If you haven’t noticed, credit card companies have a rulebook that changes at their whim. In their rulebook, (written by, approved and sanctioned by them) they have the right to arbitrarily raise your interest rate without cause.

Case in point, in November of 2008 Citigroup announced they would be raising credit card rates by 2 to 3 percent on millions of customers that hadn’t had an increase in the last two years. They claimed they had to do this because of a difficult environment. Remember, credit card companies write their own rulebooks and when you accept their credit cards, you essentially agree to be SLAMMED with little or no notice!

Credit Card Debt and The Late Payment Trap
If you fail to make your monthly payment on time by the due date, the credit card company automatically assesses you a late charge, plus additional interest. You need to know; they love it when people pay late. Late payment fees are another one of their great income streams.

Credit Card Debt and The Teaser Rate Trap
The credit card companies can’t make a dime unless they get people to take on credit card debt. One ingenious tactic they use to lure customers is by offering a teaser rate of 0% interest rate for 12 to 15 months. Its amazing how many people take the bait and bite on the too good to be true interest rate. Very few people take the time to read their disclosure. Those teaser rates come with some pretty tough conditions.

• You can never have a late payment
• Your income to debt to income ratio must remain within that company’s guidelines
• The economy has to remain stable
• You can’t apply for too many other credit cards or lines of credit
• You can never miss a payment.

Make any of these missteps and BAM, your 0% interest can quickly become 15.99%, 19.50% or higher! As you can see, getting sucked into the credit card debt trap has its consequences. The truth be told, you can live without credit card debt by simply changing your spending habits.

Joel Marks has been helping people get out of debt and avoid both bankruptcy and foreclosure for over fifteen years. Utilizing savvy debt counseling, debt management programs, Federal laws and a team of attorneys, debt counselors and advisors, he has quietly assisted thousands come from under the heavy burden debt.

For more information on this topic or any other issue related to getting out of debt, living debt free, debt management, debt relief, the Fair Debt Collection Practices Act and stopping debt collectors in their tracks, please visit www.DebtErasure.com

 Source: http://debterasure.com/