Credit Card’s Offers during Holidays
Holiday season usually invoke happy times with family, food and gifts. And holiday season is also the time when we are being attacked by credit card offers. It is during holidays where we receive more credit card offers at any other time of the year. But that doesn’t mean that it is an advantage.
When you receive a credit card application in the mail, it may seem tempting. An offer of 0% Annual Percentage Rate (APR) for six months, combined with several blank checks which you can use for purchases or consolidation of other debts may be irresistible, but your best course of action would be to shred the entire document.
If you read the back of the offer, you will notice that the APR can be as high as 19% or more after the initial offer ends. Thus, you may save money initially, but sooner or later those high interest rates are going to kick in and you are faced with additional ongoing debt.
One of the most disturbing aspects of these credit card offers is that they are sent to just about anyone who is listed in the white pages. Imagine senior citizens, who live on their social security and barely make ends meet, being presented with an offer they feel will make their lives a little easier. We know it will not. They become victims of a system that preys on unsuspecting individuals who do not realize the consequences of applying for credit. They look at those blank checks and think they’ve won the lotto!
These credit card offers are also sent to students who, because they may not fully understand the pitfalls of credit card debt, willingly apply for credit and suffer the consequences later. There was one case cited wherein a teen applied for a credit card and ran up bills totalling $5000.00. Statistics show that it would take several years to pay it off and the interest accrued would amount to more than $3000.00. That’s $8000!
Due to the sub-prime mortgage crisis, many banks have deferred offering credit and have added new requirements for those who apply. Yet, this does not stop them from sending out application upon application to those who either can’t afford it or can suffer serious financial setbacks if they do.
So the next time you received credit card offers, better ignore it to avoid increasing your debt. Credit cards can be considered our “best friend” as long as they are used wisely and in timely manner.
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