Some tricks that will leave the consumer with finance charges along with credit card debts

Credit card companies are always on the lookout to dredge your money and to make your bills go higher. While it is impossible to take on the credit card companies simply because their techniques to siphon money from the consumers are based on legal premises. The consumers who have been using credit cards for some time now are quite familiar with the fact that the credit card fees are certainly not in the best interest of the consumers. The American consumers are more familiar with credit card debts due to random use of credit cards

One of the most significant features that are associated with credit cards is that they are equipped with changing rates of interest that may change on the basis of certain factors. While the advantage of this is that the consumers are required to pay lesser interests when the prime rate or the fed funds rate is lower; the credit card companies are usually going to keep the interests rate reasonably higher despite the fact that the index are low.

The next fallacy is that of a shorter grace period which will keep the consumers cash strapped and put them down with rampant finance charges particularly on the new purchases. The best way is to use the online access to pay the credit card debts or to mail the payment as soon as you receive the bills.

Although, the subprime credit cards are not supposed to charge more than 25% but in reality, they are charging upfront fees from the consumers even before the account is opened.

Since the credit card companies are not able to charge the inactivity fees if the cards are not used for a longer time, they are now charging annual fees from the consumers who have not made a certain amount of purchases using the credit cards.

Although, the CARD act states that the companies are not supposed to charge late fees, if the credit card debts are received on a working day which falls after the weekend, the reality is different. In fact, the consumers can make the payments through telephone or online at any time of the day. The best way to avoid the finance charges that can add to the credit card debts is to remain well informed about the regulations of the credit card companies.