Comments on: How come credit card companys are allowed to charge us a percentage and a finance charge? http://www.attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/ Thu, 03 Nov 2011 13:44:25 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: hoss_994 http://www.attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/comment-page-1/#comment-8 hoss_994 Wed, 24 Aug 2011 12:55:13 +0000 http://attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/#comment-8 This may be confusing but the finance charge is the percentage your referring too. To explain this better, your monthly finance charge is based on an Annual Percentage Rate. Divide the APR by 12 and you will determine what your monthly percentage rate is and if you multiply your current balance owed on your card you will be able to pre determine what finance charge you will receive on your next statement. Example: 12.00% APR = 1.00% a month. If your balance is $ 4,000.00 your finance charge will be $ 40. If you only pay the $ 40 finance charge nothing will be applied to the balance and you will never pay off your card. Hope that helps. This may be confusing but the finance charge is the percentage your referring too. To explain this better, your monthly finance charge is based on an Annual Percentage Rate. Divide the APR by 12 and you will determine what your monthly percentage rate is and if you multiply your current balance owed on your card you will be able to pre determine what finance charge you will receive on your next statement.

Example: 12.00% APR = 1.00% a month. If your balance is $ 4,000.00 your finance charge will be $ 40. If you only pay the $ 40 finance charge nothing will be applied to the balance and you will never pay off your card.

Hope that helps.

]]> By: Iton S http://www.attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/comment-page-1/#comment-7 Iton S Wed, 24 Aug 2011 12:24:27 +0000 http://attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/#comment-7 There isn't nothing you can do about , you assigned a contract with them. There isn’t nothing you can do about , you assigned a contract with them.

]]> By: Kourtnie D http://www.attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/comment-page-1/#comment-6 Kourtnie D Wed, 24 Aug 2011 12:06:26 +0000 http://attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/#comment-6 They are allowed to because they are in the businesses of making money. Creditors reside in certain states because the laws that govern those states are all different, when it comes to regulating fees. There is a saying in this industry " creditors give their clients just enough financial rope to hang themselves" Actually credit cards were not designed to pay off every month. If everyone paid their debt off monthly the creditor would make no money. Your creditors will be as happy as can be if you continue to pay your minimum payment and not a penny more for the next 20 years! Kourtnie Donihoo Debt Analyst The E.D.A. Group They are allowed to because they are in the businesses of making money. Creditors reside in certain states because the laws that govern those states are all different, when it comes to regulating fees. There is a saying in this industry ” creditors give their clients just enough financial rope to hang themselves” Actually credit cards were not designed to pay off every month. If everyone paid their debt off monthly the creditor would make no money. Your creditors will be as happy as can be if you continue to pay your minimum payment and not a penny more for the next 20 years!
Kourtnie Donihoo
Debt Analyst
The E.D.A. Group

]]> By: Dave C http://www.attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/comment-page-1/#comment-5 Dave C Wed, 24 Aug 2011 11:59:47 +0000 http://attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/#comment-5 That's the racket of credit cards issuers... Lure you in with low interest rates, but when you miss a payment, they jack it up. To pay off a credit card, you have to pay more than the minimum payment. That's another gimmick the card issuers have... pay a little which is mainly interest payments and you'll be stuck with that debt for years. Legally they have charges for loaning you the money, an interest payment... and they have finance charges for administering your account or for missing a payment or some other weaselly excuse. That’s the racket of credit cards issuers…
Lure you in with low interest rates, but when you miss a payment, they jack it up.

To pay off a credit card, you have to pay more than the minimum payment. That’s another gimmick the card issuers have… pay a little which is mainly interest payments and you’ll be stuck with that debt for years.

Legally they have charges for loaning you the money, an interest payment… and they have finance charges for administering your account or for missing a payment or some other weaselly excuse.

]]> By: Rusty Jones http://www.attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/comment-page-1/#comment-4 Rusty Jones Wed, 24 Aug 2011 11:02:44 +0000 http://attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/#comment-4 That is their whole business, don't forget the hidden charges ! That is their whole business, don’t forget the hidden charges !

]]> By: jdb1729 http://www.attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/comment-page-1/#comment-3 jdb1729 Wed, 24 Aug 2011 10:57:53 +0000 http://attendeeinsurance.com/blog/2011/08/24/how-come-credit-card-companys-are-allowed-to-charge-us-a-percentage-and-a-finance-charge/#comment-3 It is not fair. How can you stop them from doing this? It is not fair. How can you stop them from doing this?

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