Credit Card Tricks (Part 3 of 4)

At The Pew Law Center, PLLC, Arizona’s premier bankruptcy law firm, we really do care about you and your family’s financial health. In this series of blogs, we will cover some tips for avoiding or reversing the crushing credit card debt that can lead many people to declaring chapter 7 or chapter 11 bankruptcy.

Offers that are too good to be true

While 0% interest offers from credit card companies are extremely rare these days, card issuers are sending out tempting offers for customers looking to lower their interest rates. But watch out for these common tricks:

Low rates on balance transfers: The low interest rate applies only to your balance transfer; if you make charges on the card they will be at a higher interest rate, AND any payments you make go toward paying off the lower interest transfer first.

Caps on balance transfer fees: Balance transfer fees have typically been a percentage of the amount transferred – with a cap on the amount, but some providers have eliminated the cap, making that low interest rate less worth it.

Not giving the promised offer: Even if you get a letter saying you’re approved for a low-interest credit card, the issuer may approve you at a higher rate.

How to protect yourself

  • Always read the fine print. Look for language that addresses when the teaser rate goes up and whether the company can approve you for a card at a higher interest rate than the one promised in the large print.
  • Look for the balance transfer fee and make sure it is still worth your while to transfer.
  • If you do get a new card and transfer a balance to it, pay off the balance transfer before making new purchases on the card.

At The Pew Law Center, PLLC, we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.

We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.