There are many of us who have been seriously wounded by the credit card companies that charge exorbitant rates to use their credit cards. Several years ago an APR of 25% to 29% was common place in simple terms means that if you borrow 1000 requesting that the money would be 250 to 290 annually. Professional when you think about it, but I guess you have to consider interest rates were much higher 8-10 years and there were fewer credit card companies on the market. Today's low interest rates we are experiencing have rejected hundreds of loans and credit card companies in the economic cost recovery of loans. To get approval for a loan or a credit card today has never been easier.
With the advent of the Internet you can get approved for a loan or credit card in 10 minutes. So we all have some 0%, low interest rate of credit cards in our bags and purses, but allows us to know more about the sting in the tail of these cards. 1. Monthly Payments: Well done, if you pay off your bill in full each month. Like most of us only pay the minimum monthly payment, which is usually a% of outstanding balance or not less than 5 pounds. Some credit cards will set the minimum card payments in an amount so low that, inevitably, end up paying interest and nothing else. When this happens, it ends with a scene of compound interest. Be careful you might end up paying off a loan of 2,000 for the next 20 years.