Bad Effects of Having a Credit Card ~ Pinoy Reviews

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Tuesday, May 27, 2008

Bad Effects of Having a Credit Card

Yes, having a credit card is convenient most of the times, however, if you can't manage your debt wisely, credit cards could become the bane of your life. While credit card companies are so eager to give you a credit card, in fact most calls I have during office hours are from some telemarketers offering me a new credit card, they're not so eager of helping you get out of debt once you succumbed to the temptation of swiping your every purchase.

Credit card companies charge an exorbitant rate of 3.5% interest per month on unpaid balance or your total purchases, depending on the credit card company. 3.5% interest is already enough but imagine computing that interest on you revolving balance regardless of the fact that you have religiously paid your minimum balance every month. This is the reason why some people are in debt with some credit card companies and they just resort to hiding from the companies' collection agents.

What the Philippines need is a company that can give you credit card debt relief like If you check out their resource center, you can download their "how to deal with the calls" guide which helps you reduce the number of creditor calls. Though the US's Fair Debt Collection Act isn't applicable in the Philippine setting, you can use their sample letter to send to your creditors so that you can negotiate and minimize your outstanding debt.

You should try to settle your debts rather than have it on your record. Though we don't have a credit rating system in the Philippines, financial institutions are pushing for a similar law in the Philippines and when the time comes that we do have a credit rating system, you don't want your bad credit haunting you.