Saturday, February 9, 2013


Although always present interest and fees on the cards
credit weigh on American families, most people would be surprised to learn that there is no legal limit for national APRs (annual percentage rate). In fact, according to the Supreme Court, credit card rates are regulated by individual states for most banks find their credit card divisions in friendly states such as Delaware and South Dakota without restrictions on the rate of APR.

Max APRs and loan sharking
In general, any time an APR is higher than 20% it is considered usury. However, some wholesale banks, well known, charge 25 to 35% of their customers late fees and other deductions treatment. While these rates remain well below the percentage of 200 to 300 days for some payroll cash advance loans, they can still unjustly corrode your savings. If you are charged above 20 percent and pay your bills on time, seriously consider a replacement card.

Paying credit card bills and APRs
There is still enough competition in the industry that if you have a job and pay your bills on time, you should be able to find a credit card issuer that offers an APR below 20%. With a low interest rate, you should be able to significantly reduce the time it takes to repay your debt. Make sure you read the fine print and avoid unnecessary surprises.

2009 map Credit Carte law protects consumers
In 2009, President Obama signed the CARD Act which created several new provisions to protect consumers. Some important steps include (1) no APR increases in the first year of issue (2) higher rates only apply to new purchases (3) persons under 21 years of age need a co-signer on cards or prove they have the income to pay (4) costs capped at 25 percent. 100 credit limit (5) standard billing dates and times (no Sunday or holiday due dates).

Alternatives for severely indebted
If you are seriously indebted, for example, if you need more than 50% of your income in credit card debt, you should consider some alternatives to full payment. This is the Chapter 7 bankruptcy filing, or in collaboration with a company of debt consolidation to reduce what you owe. While it may hurt your credit score, it may be the best option for your financial footing back on track. In general, you should always work to alleviate your debt highest APR first.