If you're like millions of Americans you may be getting a surprise. You're credit card company is probably raising your APR (interest rate). What should you do?
Don't Carry a Balance
I use a credit card but don't care about the APR. How can that be? Am I too rich to care? No, I just pay my balance in full every month. You don't pay any finance charges if you pay your balance off every month.
Don't Use a Credit Card
Dave Ramsey advocates using a debit card and that's good advice if you've had problems with credit card abuse in the past. Just like an alcoholic, a spendaholic needs to cut cold turkey.
Why Are Rates Going Up?
Because credit card companies are just as dumb as mortgage brokers. They've given cards to people who can't afford it and now the credit card companies are losing money. To make up for it they are raising rates on the good customers. It figures doesn't it? Those who pay their bills on time get punished with higher rates.
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