Attaining Freedom from Credit Cards

Credit cards are generally considered, especially now, as one of the least consumer-friendly forms of lending. Their easy-to-use nature amounts to constant temptation, their high interest rates are generally arbitrary and the fees they charge are high and levied for reasons that, on some occasions, seem nothing less than bizarre. Getting rid of these financial products represents something of a declaration of independence from one of the worst types of lending on the market. Many consumers are finding their wallets thinner and thinner in terms of plastic and, not surprisingly, thicker in terms of cash at the same time. There are several reasons to get rid of these accounts.

Universal Default

Universal default is a way the issuers of credit cards use one's performance on other, completely unrelated, accounts to punish their own customers with higher rates and, thus, increase the company's profitability. Basically, if one is late on their garbage bill they may well see their credit card's interest rates spike as a result. Why? No one really knows other than it makes money for credit card companies. The government is considering legislation to ban this practice, as it has become an albatross around consumers' necks that they certainly did nothing to merit.

Low Introductory Rates: Sort Of

Credit cards oftentimes lure consumers with incredibly low introductory rates. Of course, once the introductory period has passed, the rates go up to levels that border on?and, depending on one's worldview, sometimes amount to?usury. These rates, unfortunately, are oftentimes applied to large balances that the consumer had planned to pay off before the introductory period passed. The consumers may find that using the credit card too much may negate the introductory rate and make the rate jump sooner than they thought.

Fees for Nothing

Many credit cards come with fees that have no appreciable value to the consumer. These may entail "membership fees" or fees for various types of insurance imposed upon the customer. Most of these fees are explained in dense legalese and in print that is fine enough to require the assistance of a magnifying glass to read.

Helpful Services

Credit cards are famous for offering "helpful" services such as covering charges that go over one's established credit limit. Of course, this comes at a price. Some recent reports reveal that individuals who would have much rather simply been declined have seen their interest rates triple due to the over-limit fees. This sort of practice exists for no other reason than to make the credit card company money and does nothing for the consumer. Worse yet, these penalties can be assessed by accident. For example, if a regularly billed account accidentally uses the wrong card, don't expect sympathy from the credit card company when they're informed of the error.

Penalties

These are a way credit cards add misery to the consumer experience. Setting due dates for payments at midnight on the target date is one way they've historically assessed these fees against consumers. There are innumerable other reasons penalties may be assessed, most of them quite unknown to the consumers who hold the revolving account.

Getting away from this sort of credit has become a goal of many consumers. Credit cards are one of the types of debt that is among the hardest to control. The ideal situation for anyone trying to repair their credit can be expressed in two words: simple terms. The simpler a loan is to understand the easier it is to keep in good standing with the company that provided the lending. Additionally, the shorter the relationship with the lender, the better, in most cases.

Payday lenders and car title lenders have become viable alternatives to credit cards for many consumers. Borrowers who are fed up with surprises have moved to this sort of lending as it is very simple to understand and the loans are short-term enough that they don't constitute a financial burden that never goes away. In fact, most of these loans are designed to be paid back in a matter of weeks, not years, and because they are income-based, it is very difficult for a consumer to bury themselves in debt.

Payday lenders and car title lenders can provide very quick loans. Most of them operate online and the amount of time it takes to get this sort of funding is not significantly more than it takes to get funding from credit cards. If one is applying for a credit card, they will have to wait for credit checks and approval. With a payday lender, they need only establish employment and identity. For a car title lender, the vehicle presented as collateral must be inspected but the amounts available to lend are usually quite substantial and, best of all, the consumer can take only what they need.