Credit Cards; Always Check The Fine Print

Ninemsn.com.au
Do you know credit card contracts can have up to 30,000 words? To put this in perspective, the first Harry Potter book had 75,000. Are you going to read every word? And even if you do read every word, you would need a law degree to understand it. To put it bluntly, if you get in a dispute with a credit card company, you are in a legal minefield which you can’t possibly win.

An article in Money magazine recently, expressed this extremely well. Long-time Money reader, Moira was horrified to learn that a missed repayment on her American Express card led to a $1300 reduction on her credit card limit.

“I missed one payment and despite my years of paying my account every month, American Express had done a review and decided to decrease the limit,” she said in an email to Money.

In fact, Money magazine even found a clause stating the credit card company could demand full payment if you default. However, the credit card company considered a default as something as small as missing a payment.

The question we have at mr home budget.com, time and time again, is why people persist with credit cards? We know people who have thousands upon thousands in their savings account who still have a credit card with a $2000 limit. This makes no sense. Why put yourself through the stress and hassle. Cash is king!
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