Beware Of Falling Minimum Payments

Written by James Dimmitt

If you opened a credit card statement recently and were pleasantly surprised to find that your minimum payment due was lowered, don’t be so quick to “jump for joy”. What may appear as a small boost to your monthly budget is actuallyrepparttar rock that can weigh you down in debt for a lifetime.

More and more credit card companies are moving to requiring a minimum payment of 2% of your total outstanding balance. Consumer Action, a consumer advocacy group out of San Francisco, found thatrepparttar 138723 number of card companies with a 2% minimum payment reached 53%, up from 43% just a year ago.

Some creditors have even gone so far as to call this a “consumer friendly” move claiming it will assist consumers faced with today’s economic woes. In reality, a lower minimum payment causes you to take longer to pay off your debt torepparttar 138724 creditor while winding up paying them more money in interest payments.

For example, let’s say you have a credit card debt of $2500.00 @18% annual percentage rate (APR). Your monthly minimum payment based on a 2.5% pay back rate would be $62.50 per month. Oh and byrepparttar 138725 way, here’s whatrepparttar 138726 credit card company really doesn’t want you to know - it will take you 20 YEARS to pay off your $2500.00 balance payingrepparttar 138727 minimum monthly due. And you will have paidrepparttar 138728 credit card company $3,365.51 in interest!

Identity Theft Scams

Written by James Dimmitt

Identity Theft scams continue to flourish onrepparttar web. One that you need to be aware of and beware of is any site that seems to be selling high-demand items (digital cameras for instance) at a much lower (almost unbelievable) price than you can find on other sites orrepparttar 138660 manufacturer’s site.

Oftenrepparttar 138661 victim’s are told to pay nothing until they receiverepparttar 138662 merchandise. The person behindrepparttar 138663 scam usesrepparttar 138664 victim’s name and a credit card number belonging to another person to purchaserepparttar 138665 item at a legitimate site.

Oncerepparttar 138666 item is shipped,repparttar 138667 victim then authorizes his credit card to be billed or sends payment directly torepparttar 138668 scammer. The scammer has now put you inrepparttar 138669 position of being in receipt of stolen merchandise while they get away with your money.

Another scam that still seems to be working is being contacted through e-mail by someone claiming to be from your credit card company, your internet service provider, Paypal, or Ebay.

Cont'd on page 2 ==> © 2005
Terms of Use