Originally published March 9 2005
Low credit rate credit cards often bring more problems than they're worth
by Mike Adams, the Health Ranger, NaturalNews Editor
A whopping 53% of credit card holders find out about their cards through direct mail. Why are people so responsive to the 0% interest rate deals they receive in the mail? Because having six months of interest-free buying power is attractive to most people. However, studies are finding that the impact of these credit card offers is often very negative, as people feel free to spend now and deal with the consequences later.
A consumer wants the 0.0% interest for six or more months as it makes for smart spending.
Think of it, if you go on a shopping spree or just rack up $1,000 in new merchandise at 12% or higher on your current credit card and take six months to pay for it, you're incurring at least $60 in interest.
The only relief that category of consumer can get from this ongoing debt is by paying a lower interest rate.
After six months or so, the credit card offer of 0.0% expires and the ongoing rate kicks in at 12% or higher and the consumer is then looking for another 0.0% interest offer.
The impact of these credit card offers is placing consumers at risk of having to pay a much higher, overall true cost of money (interest on credit card debt) for the merchandise they buy and put on a credit card.
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