Fixed Rate Credit Cards: Do They Exist?

Over the years I have many clients tell me about this great fixed rate credit card at5.99% or lower. They didn’t want to put credit card in mortgage since they had this low rate on their credit card. I would tell them that at any point a credit card company can change their terms even if they weren’t late.

Well jump forward to the present time and I told them the truth. Many major credit card companies from Citi, Chase and Bank of America are now raising rates on people who had low promotional rates. Most of the rates are going from single digits to double digits of 12% or higher.

Why are banks doing this to good paying customers? The banks claim it is to reduce their financial exposure from clients. How does that make sense when their customers payments have to increase to make up for the higher interest rate? It simply is a way to make more money.

Remember, currently banks can borrow money from the Federal Reserve at almost 0%. Now they are lending the money at over 10x the rate they have to pay back. Keep in mind banks make money from lending people your money. This is Finance 101: Customer deposits money to banks. Banks loan money to people and earn interest. Banks pay customer very little interest or in this case the Federal Reserve.

A news article said that Wells Fargo earned over $4 Billion dollars this last quarter. Why or How? They could borrow money for almost free from the Federal Reserve and lend it at 5%, 8% , 12% or more. It is very easy to earn a lot of money from interest.

If you owe any money to a credit card company or bank you owe it to yourself to buy my book, “How To Beat Banks & Credit Cards At the Money Game.” It is almost free considering how much money you will save over the years. I have had clients implement the ideas in my book and save over $40,000 or more in finance charges. Most of my clients had a goal of being debt free and most have accomplished that goal.

If you are sick and tired of being taken advantage of by banks and credit cards you need to do something about it TODAY not tomorrow.

Hope this helps.

Visit http://www.debtstrength.com