A friend, Mick, who works in the credit card section of a bank told me that it is not uncommon for people to owe money for five years or more even though the amount may not be too large.
The problem is that the amount keeps snowballing no thanks to the relatively high interest rate. I am sure we all know that the slower we settle our credit card balances, the higher the interest rate is. Still, some people think that cash advance from their credit cards is still better than taking out loans from friends or family. Let's not even consider loans from loan sharks!
Mick said that banks would engage Collection Agencies to take over the work of collecting payment from bad credit card debt accounts after a certain period of time. I thought that such financial information is private and confidential and the agreement, if any, is between the credit card issuer and the credit card holder. That may be so, Mick said, but chasing bad debts simply takes up too much time and resources.
Too many people are abusing and misusing their credit cards. The annual service fee imposed on credit and charge cards is supposed to address this malady but will it help? I personally do not think so.
The problem is that the amount keeps snowballing no thanks to the relatively high interest rate. I am sure we all know that the slower we settle our credit card balances, the higher the interest rate is. Still, some people think that cash advance from their credit cards is still better than taking out loans from friends or family. Let's not even consider loans from loan sharks!
Mick said that banks would engage Collection Agencies to take over the work of collecting payment from bad credit card debt accounts after a certain period of time. I thought that such financial information is private and confidential and the agreement, if any, is between the credit card issuer and the credit card holder. That may be so, Mick said, but chasing bad debts simply takes up too much time and resources.
Too many people are abusing and misusing their credit cards. The annual service fee imposed on credit and charge cards is supposed to address this malady but will it help? I personally do not think so.
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