Credit cards nightmare in simple words, without overwhelming readers with strange banking terms they cannot understand, read and enjoy.
Customer Acquisition Process
Banks and Financial Institutions are in race to get you enrolled into their Credit Cards programs, marketing departments collect phone numbers, and people names, sales team do the targeting to enroll you into their program.
The offers are limitless, credit-scoring departments are fooling you through their due diligence process to convince you they are very strict in selecting the customers and approving only those with good credit scoring history, however they approve many of the applications they receive from sales departments.
Once your application written by the sales team approved, you will receive a nice packaged package, you will take the card in your pocket and through the rest of the package in dust without going through the leaflets, terms and conditions, penalties, regular charges.
Credit Cards Programs Promises
Each bank/financial institution try to position themselves differently from others to convince you to spend more based on your profile assessment and sales targeting program.
Some of the benefits offered are:
- Special discount program through specific chain of sellers who are already engaged in their programs
- Travel rewards and special air tickets pricing using the card
- Dinning discounts through chains of restaurants
- Cashback points
Customer Behavior using Cards
Customers vary on their behavior using cards; however, here are some of those bad behaviors:
- Taking cash advance
While it is easier than taking a loan, they are higher in charges, and they will fill your monthly statement with interest if you do not settle them on time - Carrying balance continuously
Once you start to use your card for purchases and taking cash advance you tend to pay partial amount of your total expenses accumulated using the card. Card limit is always designed in a way that you can spend more than your income to get in the trap of losing ability to settle full due amount (this is the heaven of banks). - Making minimum payment monthly
It is good for the bank to pay minimum monthly because you will leave unpaid balance in your card to calculate more interest continuously against your statement. - Using Card while you don’t have cash to pay
Usually you will tend to use the card without thinking while you are in the grocery and shopping avoiding to take cash in your hands, and also because you are short of cash (this is your fake enjoyment) - Missing monthly payment
Among those bad behaviors, most cardholders are missing monthly payment, which could happen due to cash limitations or by self-ignorance practice. Your biggest nightmare start here, bank will charge late payment fees against your card, and more interest rate, as well as they might charge more insurance fees against your card.
Taylor Tepper has written good article about Credit Cards do’s and don’ts, read it and listen to the talks.
Charles Brown written Five Things You Should Never do With Your Credit Cards
New Cards are being introduced to you
While you are still enjoying the credit limit in your card, other banks are calling you to get another card using their program. Ultimately, you enjoy that extension of credit facility, at the same time you add more credit debt to yourself.
The nightmare is following you
Usually within two years if you are lucky, your nightmare will start; collection department is calling you to settle overdue amount immediately, a letter from legal department is in your mail. While you are just thinking how to pay the due amount in your card and return back to your comfort zone.
Getting Rid of bad Debt
Once you get in the trap of high debt in your cards, you will start to search for tips and tricks to reduce your debt, and thinking more on reducing the number of credit cards in your pocket. The process of getting rid of debt is not easy as it look during your research. The good news for you, there are many experts and consulting firms’ specialized helping you getting out of debt, do not hesitate to talk and consult with them. They will guide you carefully through their well-developed programs and expertise to reduce your debt and get rid of cards nightmare. Nationwide Debt Reduction Services is one of those specialized firms who can guide you very well through their structured approach and well-trained consultants.
Author: Debt Relief Services
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