Credit Cards

Renaud Laplanche and Credit Card Headaches

Credit cards have been bad news for so many people all around the United States and globe. Some people believe that credit card use can get them out of significant financial ruts of all sorts. The consequences that are associated with credit card doubt, however, are in many cases substantial, devastating and lasting. Renaud Laplanche is a man who knows this all too well. He believes that the negatives that are linked to this kind of debt are more than abundant. LaPlanche thinks that credit cards can push people into lasting debt dilemmas that are hard to exit. The majority of credit cards that are out there have monthly minimum payment requirements that are pretty insignificant. The aim behind this isn’t to be kind. It’s to encourage people who have credit cards to owe money for extended spans of time. Why is that? It’s because it paves the way for credit card firms getting more interest. High balances and credit card company profits go hand in hand, after all. Businesses that offer credit cards tend to get billions and billions annually on income that’s associated with interest, believe it or not.

Steep rates are never a welcome thing for anyone. If an individual has a strong credit score, she may have a rate for her credit card that’s pretty steep. She may have a rate for a store credit card that’s worse, too. Outstanding credit ratings do not protect individuals from rates that are unpleasant and unreasonable. People who want to steer clear of the stresses of having to manage outrageous card rates often have no option but to nix the world of debt entirely.

Significant fees are par for the course in the universe of credit card debt. Businesses that focus on credit cards tend to burden their customers with all sorts of inexplicable fees. They have yearly fees in place in many situations. They have fees that are connected to getting cash advances. They have fees that involve balance transfers. If a person who has a card makes a payment that’s a little late, there are fees for that, too. The fees can often seem overwhelming. People who don’t want to have to spend an arm and a leg on all kinds of mystery fees often realize that credit card debt just isn’t worth it at all. It can be difficult for people to be able to keep track of fees that are part of penalties, interchange income, interest income and beyond.

Credit card firms sometimes give people messages that aren’t exactly healthy. That’s because they in many circumstances try to push people to use higher amounts of money. They do so by dangling the possibility of “rewards” in front of their eyes. It isn’t atypical for credit card companies to try to get their clients to set aside cash for things that are 100 percent frivolous. This can contribute to a debt rut that can lead to lasting and substantial consequences for many people of all ages.