Nasty Card Fees Revealed

Nine Msn
Reserve Bank data shows that credit card fees have risen 170% over the past five years. Yes, this is correct.

By the way, 170% over five years is on average 22% a year. For example, if they were making $100 a year on fees five years ago, they would be making $270 now. If this trend continues, be prepared to pay $730 a year in 5 years’ time. So as you can see, 22% growth on anything each year makes a very small number very big quite quickly.

Just to give you another example of 22% growth. Let’s say you purchased a $250,000 home five years ago, it would now be worth $675,677. As you can see, a 22% increase a year is beyond ridiculous. Now let’s see what it would be worth in 5 years’ time. The house would now be worth $1,826,157 or just over seven times what your initial outlay would have been. An easy way to get rich if ever I heard one.

But because banking fees are generally only in the hundreds of dollars rather than thousands of dollars, so no one really seems to mind or notice the small increases. But the banks are rubbing their hands together.

We need to send a message to the banks that this is not on. Cut up your credit cards; cancel them and go back to cash.

Money magazine has done a full article on sneaky credit card fees.
For full article click here