Misleading Credit Card Interest Rates.
Please join my Credit Card Protest at DAILY-PROTEST.com
I predicted todays economic woes over two years ago, and I predicted it would be the credit card industry that would lead the way.
It is simple to calculate the "real" credit card interest rate. Compare the amount one pays towards interest on your monthly credit card bill and the amount that goes towards paying down the actual principle every month. In many cases, the amount being paid towards interest is MORE than the amount that goes towards paying down the actual debt.
If more than half of what one pays every month is going towards the interest payment, than in actuality one is paying more towards interest than towards their their debt. Unlike a home or real estate property, credit card debt basically offers no long range reward, yet the banks have made it their mission to build up this kind of unhealthy debt within their own customer base that already has a mortgage to pay.
Paying more in interest every month versus what one is paying towards their actual debt means customers are paying approximately 400% higher interest rate charges than the actual quoted rate!
It is going to take many protest websites such as this one to once and for all get Congress to do the right thing. It is time for Congress to rein in the banking industry and create credit card interest rates that allow banks to make a fair return without indenturing americans in the process.
Simple math has been made complicated and many don't comprehend the extent to which they are being charged interest rate wise. It starts with credit card debt and eventually it will be property that is taken away by a banking system that only knows how to turn the screws tighter on law abiding americans with more and more loaning offers.
Do Banks Control Congress?
Wednesday, Dec 04, 2007, Senator Carl Levin made a questionable conclusion during a congressional hearing on Credit Cards. Senator Levin stated that it wasn't fair that the Credit Card companies raised their interest rates on customers who haven't missed payments, "WITHOUT NOTIFYING THEM".
Senator Levin should be commended for conducting credit card hearings and exposing some of the very bad behavior of Credit Card Companies. However stating that it isn't fair that the credit card industry raise rates without fair notice isn't really standing up to anybody, is it?
What isn't fair Senator Levin, are interest rates of 80% to 100% and higher camouflaged as interest rates of 20% to 30%.
Do you see how our elected elite don't get it? Or, perhaps they do get it and they just continue to stall in an effort to appease the banking lobbies. There is a logical solution Senator Levin, cap the total amount of interest one can pay on a credit card loan.
We have been misled for far too long in regards to what the amount of interest is that we are really paying. We can all debate what the total amount of interest should be, but right now, the american public is being fooled into thinking they are paying 10% or 15% or 20% percent interest on their credit card debt when they are actually paying over 100% in interest.