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The biggest rackets in our country today are credit card companies. Credit card companies design their programs and the terms of their credit cards to bleed consumers dry. Having high interest rates and annual fees make it nearly impossible for the average credit card holder to pay off their credit card debt in a timely manner. This means that the interest they are accruing gets higher and higher and they find it more and more difficult to pay off the debt.
Credit card companies the target the young and inexperienced. When I was a freshman in college, the very first week I was on campus I was approached by half a dozen credit card companies. Each one offered me a credit card that was pre-approved. Most of them had very small limits of around $500. For an 18-year-old on her own for the first time, $500 sounded like a lot. Once I checked the fine print I found that each of these credit card companies charged high interest rates and an annual fee averaging $75 a year. At this rate, $500 per year would end up costing me well over a thousand if I only paid the minimum payments. Even then I would not be able to pay off that original $500 for many years, all the while I would be accruing interest and fattening up the credit card companies.
I know plenty of people who have experienced huge headaches when trying to deal with their credit card companies. You may as well consider it a lost cause to try to get your annual fee or interest rates reduced. Credit card companies have perfected the art of putting off the consumer. If you try to call your credit card companies and speak with someone who can actually help you, you can spend hours on the phone and experience no progress whatsoever.
If you are a parent of a teenager or college student, please warn them of the dangers of credit cards. They are just starting to begin their lives and if they ruin their credit at this young of an age they will find that it will take years to repair it. Mistakes made while you are young and inexperienced are not forgiven by credit card companies and will affect your credit rating for many years to come. Even then you may find that you have to enlist the help of an attorney or agency to help fix your credit rating. By that time you have already paid thousands of dollars in inflated interest rates and fees because institutions consider you to be a risk.
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