If you are struggling under the weight of high credit card fees, this video will help you to know how to identify and then avoid credit card fees.
In this engaging video, the host engages in a thoughtful discussion with Mike Peterson, a renowned debt guru, about the rising concern of exorbitant credit card fees. The conversation delves into the alarming increase in late payment fees and the staggering interest rates imposed by credit card companies, with some rates reaching as high as 34.9%. Peterson sheds light on the fact that despite new legislation set to take effect in February, credit card companies retain the ability to impose late fees, hike interest rates to the legal maximum, and negatively impact credit reports. This issue is compounded by the financial struggles many individuals face, leading to late payments even as they attempt to pay down debt, creating a challenging environment for both consumers and creditors.
Peterson points out that credit card companies are feeling the financial strain due to reduced consumer spending and increased debt repayments, prompting them to adopt more aggressive fee structures. Despite the difficulties this poses for consumers, Peterson suggests that the situation might ultimately encourage more effective debt management practices in the long run.
The conversation then shifts to practical strategies for avoiding these high fees. Peterson emphasizes the importance of proactive planning, recommending that electronic payments be sent three days before the due date and mailed payments ten days in advance. He notes that creditors often use specific time stamps, such as 3 PM on the due date, to determine late payments. Additionally, Peterson advises reaching out to creditors to request a change in the due date, pointing out that many credit card companies are willing to accommodate such requests. This strategy aims not at avoiding payments but at managing payment schedules more effectively.
The discussion concludes with a reiteration of the predatory nature of high interest rates and late fees, even for long-standing customers with good payment histories. Peterson advocates for paying credit card balances in full each month to avoid accruing high interest charges, underscoring the importance of responsible credit card usage. The video wraps up with a call to action, directing viewers to visit debtguru.com for more information and resources on how to avoid credit card fees.