Credit card debt story: Common credit card Pitfalls [Part 2]

Continued from part 1

INTEREST RATE CHANGE THAT
The interest rate on a credit card is not always remain at its initial level. There are several ways credit card companies can legally raise your rates. Your action plan is to be aware of these and watch out for them in the daily use of your cards. Here is a list of the most common reasons for higher rates:

• Your rate of 0 percent teaser expires: There is a reason they are called "teaser" rate. If you have a low teaser rate, call toll-free number on the back of your credit card and when that rate expires, because your new interest rate will probably skyrocket. Ideally, you must pay or transfer your balance forward. Sorry, but by transferring your balance from 0 per cent card to another is not a smart long-term strategy because it does not answer your problem of having too much debt. The smart strategy is to work hard to pay all your debts credit card. Also know that the teaser rates on balance transfers often apply only to the balance transferred to new charges on the card could have a much higher rate and get paid last. Always ask about it.

• You are late in paying your credit card bill: Say you put your credit card bill in the mail two days before it expires. Unfortunately, the mail is slow this month and it takes three days to reach the credit card company. Not only you will be charged late fees, but your interest rate and would probably increase. It is not uncommon for a low introductory teaser rates of 0 per cent to a penalty rate of over 20 per cent because your payment is late. So please, do not ignore the bill, even if it means opening while drinking a glass of wine or eating a bowl of ice cream to relieve pain.

• You are in arrears in the payment of all other bills: Yes, credit card companies can check periodically to see if you've been late on any of your other bills and use as a reason to increase your interest rate. While the phone bill pay on time, too.

• "Simply because," with fifteen days notice: It is a sad reality, but a real credit card company can change your rate of only fifteen days written notice. That, to whom they sent the small print, with your original card.

Cash advances and "FREE" CONTROLS
Credit cards usually have interest rates for goods and services you purchase with your card, then a much higher rate for cash advances and those "free" that periodically checks arrive in the mail. In addition, interest on cash advances and free checks began returning to the minute that you use. The key is that you should not use your cards for one of these "amenities", unless it'sa real emergency. As for cards retail, there is a reason why credit card companies to send you free checks. Once again, this is not for you.

Please continue reading part 3