Credit card debt is the third largest source of household debt in the United States after home mortgages and student loans. During good economic times credit card spending can boost the economy but when wages are not rising and the economy starts to go south increased credit card use normally means that households are struggling.
The only way to pay off credit card debt is to try and pay twice the minimum payment. If twice the minimum payment is not possible pay as much as you can without causing you to default on other debts. All credit cards are “equal opportunity offenders” but some cards are really what we call predatory lenders.
If you have CREDIT ONE BANK or MYPREMIERCREDITCARD then the best advice is to pay them off as soon as you can. These credit cards normally only have a small credit limit like $400 to start but their fees are outrageous. For instance, mypremiercreditgoldcard will charge you a $95.00 set up fee, $48.00 annual fee, $29.00 service fee and another $84.00 annual fee (actually it is a monthly fee of $7.00).
The other cards to avoid are the new “prepaid debit cards” The prepaid visa Rush card offers you two plans. The pay-as-you-go plan has a $20.00 activation fee and the pin transactions that cost nothing at a normal bank will cost you $1.00 per transaction! ATM withdrawals are $1.95 each time you use the card. The other plan is to become a monthly member which has a laundary list of fees.
1. $9.95 account maintenance fee.
2. $3.00 activiation fee
3. $2.00 enrollment fee
4. $1.00 bill payment fee
5. $1.00 paper statement fees.
The lesson to learn here is if you want another credit card then try and use a named institution, even if they have a higher interest because it is based on your credit score. If you have a problem with the credit card at least there are rules governing the major banks.