Check out his headline from the Consumer Financial Protection Bureau from Wednesday:
CFPB Finds Credit Card Companies Charged $12 Billion in Late Fee Penalties in 2020
Largest credit card issuers expected to hike fees further
The article goes on to indicate that current first-time late fees have increased to $30.00 and, for subsequent late fees within 6 months, to $41.00. It does not matter if you are late in making a $2.00 payment or even if that is the entire balance!
It gets worse. The average deep subprime account gets charged $138 in late fees per year.
There are a few lessons here:
(1) If you want to be rich when you grow up – be a credit card company!
(2) If you can’t sleep because you don’t feel good about hosing people – don’t be a credit card company, and…
(3) Repeat After Me: Paying Credit Card Interest and Late Fees will keep me poor. Again: Paying Credit Card Interest and Late Fees will keep me poor. One more time: Paying Credit Card Interest and Late Fees will keep me poor.
The Credit Card Industry calls the person who pays the minimum payment, month by month, a “Revolver.” Why? It’s because the person keeps revolving around the circular door month after month and never gets anywhere. It is the same analogy as the mouse spinning the wheel (run, buddy – run!) but he gets nowhere. The Credit Card companies love their revolvers – and well they should. Wouldn’t you like someone to spin around a revolving door and hand you money each time they pass – while at the same time, forever increasing the amount they owe you? You do NOT want to be a “Revolver”. You want to be a “Transactor” – the person who pays off the card in full every month. This is the goal. Use the card, carry no balance, pay no interest, and earn points and rewards. Make them pay you!
If you’re in the Credit Card Trap – which means you cannot pay off the cards – you’re a revolver and that’s not what you need to be. You need to take action to break the cycle. Get rid of the debt and become a “Transactor”.
If you’d like to learn how, here’s good news – something we haven’t been able to say since March 2020.
Attend our FREE Live Seminar: How To Make Debt A Thing Of The Past!
It’s Wednesday night, April 20th. Whether you can make it or not, the takeaway here for you, for your children, and for your grandchildren – do not be a Revolver! Let the credit card companies love someone else!
Did you know that THAV GROSS offers free consultations for business, financial, and tax problems? Call us anytime – (248) 645 – 1700 or CLICK HERE to send us a message.