January 4th, 2008
Stop Escalating Credit Card Interest Rates
The promotional rate lasts only a limited period of time or till a late or missed payment is registered. When this happens, the interest rate increases immediately, generating unaffordable interests that worsen the debtor’s situation.
This can have terrible consequences both on the finances and credit score of the applicant because as interests accumulate, the minimum payments grow (or the loan payments become all due immediately) making it impossible for the debtor to repay the amount owed. This generates further damage to the credit report as negative inputs keep getting recorded into the debtor’s credit history.