Avoid Being Victimized By Credit Card Debt Consolidation

| June 24, 2010

The News Gals (Press Release)Jun 23, 2010

If you dealing with massive debt and you have that “How in the world did this happen?” feeling, chances are you have been victimized by the credit card companies.  The shocking exposure of credit card companies’ unfair practices has alerted thousands of unsuspecting credit card customers that their rights have been violated.

Credit card companies try to sell you on debt consolidation. There are at least three major reasons why you should run the other way when presented with a debt consolidation offer through balance transfer.

Bait and Switch

While at first glance it appears that these companies are generously granting you the privilege of borrowing money at zero or low interest, they are calculating that you will take the bait and thereby become trapped into higher interest rates and penalty fees upon the tiniest infraction on your part.

Just to be sure that you become entangled in their trap, credit card companies engage in sneaky practices.  For example: some credit card companies often have floating due dates.  You think you are paying on time but the due date has advanced a couple of days sooner.  You make one payment late because they have arbitrarily changed your due date; your interest rate can shoot up to 30% so fast it makes your head spin.  Other credit card companies engage in two cycle billing.  That means that if you think you’ve paid off your balance, there could be a follow-up billing cycle that you just missed and the accrued interest is slammed onto your next statement.

Lower Credit Score

Call it a vicious cycle or a cat and mouse game; consolidating debt through balance transfer is a losing strategy that squeezes the life out of your credit score.

It’s almost like being addicted to crack and the credit card companies are your dealers.  Each time your introductory zero interest rate is about to expire you hit the next credit card offer that comes in the mail.  Every time you submit your credit application, an inquiry about your credit worthiness is made to the credit bureaus.   The more inquires the bureaus get, the greater the chance they will lower your credit score.

Back in the Same Sinking Boat

So while it might appear that consolidating your debt through balance transfer is the life line you are looking for,  studies show that over 70% of consumers who consolidate debt often end up in the same or worse position in as little as 2 years.

What To Do If You Think You Are A Victim Of The Credit Card Companies

It’s true; your debt is your responsibility.  No one held a gun to your head and made you go into debt, you did it all by yourself.  But is that the real truth?

For decades, credit card companies have masterfully played the greed card.  You responsibly pay your bills, but you are no match for the calculated and often-illegal tricks that the credit card companies perpetrate on the credit card consumer.

Rather than languishing on the debt consolidation by balance transfer “hamster wheel”, find out if you have been victimized by credit card companies.  Continue to pay your credit card bills and also consult with a consumer defense attorney.   The consumer defense attorney will tell you whether or not you have a good defense to dispute your debt.  Every state has different consumer defense laws. Texas, California, and Florida are among the more consumer friendly states.

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Category: Business & Finance News, Press Release

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