Those no-good credit card companies — they are always trying to cause problems for borrowers through nefarious and underhanded tactics. Many Washington residents who are suffering under the burden of credit card debt may have gotten into their current situation through little fault of their own. One of the main culprits: the pre-approved credit offers that tempt them into spending too much.
Industry leaders say that many of the pre-approved credit invitations consumers receive in the mail have little to do with individual credit reports. Instead, they are based on the marketing research that shows which populations are most likely to make the ongoing high interest-rate payments that keep the card companies afloat. The creditors do not care at all how much you can afford to spend — rather, they prey on those who may be expected to spend more.
Credit card companies do not make money off of consumers who pay their bill in full every month, which is why they have created a system designed to keep consumers in debt. This can lead to victims carrying up to one-third of their income in credit card debt. Getting out of debt at that point can seem insurmountable because of other flaws in the system. Credit card companies report defaults to each other, for instance. If you default on one card, your rates are likely to increase across the board.
All of these factors can combine to cause great financial challenges for Washington residents who are simply trying to keep their heads above water. Those who are suffering major financial setbacks may find out that they are good candidates for bankruptcy. You, too, may be able to get out from under the burden of consumer debt by consulting a legal team knowledgeable in bankruptcy matters.
Source: Law Office of Ruth Nelson, “How Credit Card Companies Stack Your Debt Against You” Aug. 26, 2014