Credit Unmasked

Post date: 2008-04-03 05:38:22

Home Truth about Credit Cards for Women

Everyone has probably seen how attentive and obliging are banks to all the customers, even if they only have $5 on their account. You will surely get a smile and maybe even a cup of coffee, because banks are struggling for consumers. Credit cards in the US are distributed by the credit card companies - Visa, MasterCard, American Express and Discover, and the real plastics issuers are the banks. Each card has its own details, but we'll touch the reverse of a medal and speak about the debts.

Credit cards are issued by banks and serve as a comfortable tool to pay in any situation without the need to have cash. Credit cards enable us to purchase goods online, to fill up at gas stations, to order pizza and to pay by phone.

Meanwhile, many Americans consider these tiny plastics with hologram a parent of evil. Credit cards open access to the money, which belongs to the bank and which will be automatically passed to you. In other words, the credit card gives you access to money that you don't have. If you realize this fact and your expenses are based on your revenue, you are not likely to have serious problems - you have no need to carry cash, you fill up with a gas card, shop online, or order pizza whenever you want to.

But such a situation happens quite rare. According to facts, the average American has an annual income of $37,005, and his average credit card debt is $7,942. Let's round these figures off. So, this way, he makes $37,000 annually and has a debt of $8,000.

Bill Gates, recognized as the richest person in the world, owns the larger fortune than 40% of Americans. As the population of USA is around 250 million (in fact, the official data exceeds this number by 8-10%), Bill Gates on his own represents financially 100 million Americans, which have a rather high level of life.

Here we should mention that 20% out of these 40% have negative revenue, which means that all the earned money only cover the debt payment and current expenses.

Credit companies, like Visa and MasterCard, are happy to catch you on a hook at young age, when the desire to own everything at once predominates over the feeling of financial responsibility, and credit cards are used to buy cars, clothes, and to pay restaurant bills.

In fact, you start working with a bank when you get your first bill, which exceeds the power of your credit card. Let's say you bought an absolutely amazing sound system for $1,500 when you only had $500 on your account. Your low APR card was swiped through the terminal, and you enjoy your high performance sound system. At this moment you are really grateful to the bank, which agreed to help you.

But don't rush to be happy and to embrace the columns of the central bank's office. You will have to pay this thousand back within 30 days, otherwise the bank will start counting out credit card debt. And this is the most terrifying thing for cardholders. It is particularly tough for the ladies, as they are usually burdened by the whole bunch of problems and worries about their families and kids. If you don't find the money within 30 days, you may be surprised to find out that you got this money for 13-25% APR (depending on a bank), every month you have to pay maintenance fee, and, the most important, your debt is accumulated. Unfortunately, for many cardholders the first plastic becomes the last one and the whole life is devoted to the credit card company.