The 7 Little Secrets Credit Card Companies Don't Want You to Know

America is experiencing the highest credit card debt ever. However, consumers’ confidence in reducing debt is experiencing an all time low. Debt Settlement is in the business of reducing debt to avoid the need for bankruptcy. Here are seven little secrets you can use in your arsenal to begin reducing debt.

1. Study the Fine Print. Credit card offers entice consumers with low introductory rates - That’s where it ends. After the introductory period, your rates will increase. Because there are no regulations, companies can increase rates to whatever they want for any reason they want.


2. Know the rolling balance. Credit card companies do not have grace periods before new purchases show up. New purchases immediately have interest attached, which rolls over with the remaining balance. To avoid hefty balances, pay the balance off completely each month.


3. Know your terms. A big motivator credit card companies use to increase rates are late payments. If a late payment is made, for whatever reason, the terms can immediately change. This can work against someone trying to reduce debt and avoid bankruptcy.


4. Know Your Legal Rights. Credit card companies have the legal right to review your credit report at anytime. In cases of debt reduction, they can check to see if you are trying to reduce debt with other creditors. Because they have this access, credit card companies could ultimately use some of that information against you.


5. Universal Default. Since credit card companies can access your credit report, they could see something in there they don’t like. And, for whatever reason, they can legally change your interest rate - up to 29%. Keeping current on your credit cards and credit report is key to combating this as mistakes made on your credit report could impact universal default.


6. Beware the cancellation policy. You can reduce or close your credit card at any time. But, beware that credit card companies also have the same power and can wield it at anytime. Credit card companies can also terminate your rights to use a card.


7. Fewer cards can reduce debt, avoid bankruptcy. Credit card companies would love nothing more than for you to have 10 cards with $1,000 credit limit on each. They would reap the benefits of the interest rates. But you, as the credit card holder, should make it a goal to limit credit cards to only one or two that have a higher line of credit, especially when reducing debt.

Reducing debt, especially from credit cards, and avoiding bankruptcy is completely possible even in tough economic times. All you need is the understanding of how the credit card companies work and that it involves a little elbow grease on your part. If your debt is getting a little out of control, Debt Settlement can help you get back on track. It only takes a few seconds and a FREE phone call.