http://thehowtogetoutofdebtplan.com Practical Tips And Advice That Will Help You Learn How To Get Out Of Debt Fri, 11 May 2012 22:53:22 +0000 en hourly 1 http://thehowtogetoutofdebtplan.com/archives/are-credit-card-companies-really-charging-83-3-interest http://thehowtogetoutofdebtplan.com/archives/are-credit-card-companies-really-charging-83-3-interest#comments Thu, 18 Feb 2010 16:36:11 +0000 Admin http://thehowtogetoutofdebtplan.com/?p=58 Everyone pays attention to the interest rate when shopping around for credit cards, but Finance Charge policies are rarely glanced at. Are credit card companys are really charging you 83.3% interest?   When a customer receives a $1000 loan from a bank, the bank in turn has the legal right to charge interest on the rate you borrowed the loan. If, for example, the interest rate were a fixed 10%, cost of borrowing the original $1000 would be at least $1100, in other words, the $1000 loan + $100 finance charge. Banks and credit card companies don't expect most customers to borrow the loan and pay it back right away, and nor do most people pay on time every month. The bank allows customers a few days after that date to pay their bill, which is called a grace period. Payments received after the grace period can be assessed as late fees or additional finance charges (Read More....)

]]> Everyone pays attention to the interest rate when shopping around for credit cards, but Finance Charge policies are rarely glanced at. Are credit card companys are really charging you 83.3% interest?   When a customer receives a $1000 loan from a bank, the bank in turn has the legal right to charge interest on the rate you borrowed the loan. If, for example, the interest rate were a fixed 10%, cost of borrowing the original $1000 would be at least $1100, in other words, the $1000 loan + $100 finance charge. Banks and credit card companies don't expect most customers to borrow the loan and pay it back right away, and nor do most people pay on time every month. The bank allows customers a few days after that date to pay their bill, which is called a grace period. Payments received after the grace period can be assessed as late fees or additional finance charges (Read More....)

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