January 12,2009
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Fearing Fear Itself, Pt.1 –
– The ‘fear list'.Evil enough, there is, for the day. When it comes to credit cards, we don't need to be burdened with further fear that is unfounded. With that said, it's important to acknowledge that credit card struggles are laden with threats and some of them do need to attending. Still, others are found to have little consequence and these are the ones we need to remove from our credit card ‘fear list'.
The following articles will address some of the most common credit card fears having little foundation, with supplemental suggestions on closely related threats that are real. Here is the first major hurdle in dealing with unfounded credit card fear:
Credit cards are dangerous, better not to have one: Many people are skittish about even owning a credit card. We tend to fear what we don't understand. Many of these same people, however, are the victims of friendly salespeople who, unscrupulously, enter them into a very one-sided credit plan when they buy a car or a new ‘air handler' for their central heat & air system.
Wells Fargo or Citi Financial (not part of Citigroup) will nicely accommodate them with quick terms. Once done, the victims find themselves paying a 24% APR over the next 18 years. The grace period may be only five days, including time in the mail. If the payment arrives a day late, the penalties are severe. The only hope for these hapless victims is to either win the lottery or transfer the balance to a credit card.
Way ahead of the entrapment-escape game, these companies have already blocked that route and the only way around their jamb is to have a credit card lender actually mail these people a check in full. Many motor vehicle dealers make most of their profits from these shady deals and won't allow paying partial cash (or credit card) for the sale. It's all or nothing.
As far as credit cards, fear begets fear but knowledge begets power. Take small steps and learn. You'll be fine.