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Learn How NOT to become a credit card FOOL!

Published by admin on May 25, 2010

Learn How NOT to become a credit card FOOL!

We authorize the credit card industry to make fools out of us and we simply reply to that by doing nothing about it. If someone said that you were going to be made a fool, do you plan to solve that problem? I know I would.

Credit card companies have received revenue of more $ 76.03 billion U.S. dollars and the majority of revenue comes from late fees, penalties, over limit fees and cash. 29.2 billion U.S. dollars came from a late penalty of $ 15,200,000,000 came from over the credit limit fees and $ 3,040,000,000 in cash advance fees. This amount is 62% of the revenues of credit cards companies, and it does not include the financing costs. So we must say that it’s a nice profit!

The above numbers represent the reason why credit card companies can now afford to mail you over more than 5 billion credit card offers per year directly to your mailbox. This is equivalent to receiving 6 offers per household every month. Maybe that $2 billion paid for postage alone is the reason why our government does not look to do something about the abuse that is being made by the credit card industry.

Each bank wants you to have as many credit cards as possible. Those who have their credit card will help them to make some huge profits. In 2001 both Sears and Circuit City announced that more than half of corporate profits were made out of the financial-related services offered. Do you think this could be the reason why sales staff is always at the door of the shop with offers for you to sign up for their credit card and in return receive a special gift or extra “X%” discount? Most other special gifts and discounts end up costing a lot more than the original purchase you have made. However you are going to be given the chance to refuse all this and to start living your own independent life, without any of this and avoid a lot of costly services that are not going to change your life in a positive way.

I may not be able to fight against those institutions that are trying to make a fool of me, but I can defend myself from using them. This can happen by believing that “cash is king”, and using cash instead of credit. If you are also going to apply this, you will save a lot of money in the end.

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