1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair
Isaac).
2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% -
30%!
3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.
Record High Consumer Debt - Student
Loans, Credit Card Debt & National Debt Videos
(April
10th, 2007)
For
the past 30 years, banks have been allowed to charge
sky high interest rates on debt owed by their customers
and no limit on fees charged. Banks can therefore
charge their customers whatever fees or interest rates
they like! Out of the 50 US States, 31 of them institute
no restriction on the % of fees that banks charge
or the interest rates. The states with the least consumer
protection: California, Delaware, South Dakota &
Tennessee. American Banker's Association quotes, "the
banking industry is extremely concerned about consumer
debt levels... But consumers also have an important
role by weighting credit opportunities carefully based
on their own financial goals, behaviours and needs."
* Please
be patient this video takes time to load *
Video Review
CBS Reporter
says: Tracy Skoramski felt overwhelmed by
the fact that her credit card debt bill blew from
$9,000 10 years ago to nearly $18,000 today!
Tracy Skoramski
(28 Year Old Consumer) says: I was kind of
naive going into the credit world, you know when you're
17-18 years old going into college on your own. Skoramski
thinks she and thousands of other people are victims
of the overly aggressive credit industry.
CBS Reporter
says: Consumer advocates say the problem
is that for the last 30 years, banks have been allowed
to charge sky high interest rates on debt owed by
their customers and no limit on fees charged. Banks
can therefore charge their customers whatever fees
or interest rates they like! Out of the 50 US States,
31 of them institute no restriction on the % of fees
that banks charge or the interest rates. The states
with the least consumer protection: California, Delaware,
South Dakota & Tennessee.
Tracy Skoramski
(28 Year Old Consumer) says: If i really
want something, then i can save for it. It's not going
to hurt me to wait a couple of months to save for
the item i want to buy, instead of racking up my credit
card bill.
Comments
John Comments on April 6th, 2007
"The banking industry is extremely
concerned about consumer debt levels..."
Is this why so many credit card
companies supported by banking sponsors give out $1000
limit credit cards to first year newbies at my college?
They wanna hook them up with debt so early in their
age that they are forced to LIVE with debt for the
rest of their lives?
For
the past 30 years, banks have been allowed to charge
sky high interest rates on debt owed by their customers
and no limit on fees charged. Banks can therefore
charge their customers whatever fees or interest rates
they like! Out of the 50 US States, 31 of them institute
no restriction on the % of fees that banks charge
or the interest rates. The states with the least consumer
protection: California, Delaware, South Dakota &
Tennessee. American Banker's Association quotes, "the
banking industry is extremely concerned about consumer
debt levels... But consumers also have an important
role by weighting credit opportunities carefully based
on their own financial goals, behaviours and needs." 
