Most people have credit cards, especially those who are living in more industrialized countries. This is due to the convenience it offers to the credit card users plus the fact that cardholders can have their goods without spending a dime; all is charged on the credit card. It has become the best friend of those who prefers to shop, do their groceries and pay their bills with credit cards. People were able to pay their bills on time, and there are a small percentage of cardholders going default. However, times had changed and so do people.
Today, people who have credit cards sometimes-go default, or make delayed payments. It is fine if it happens once, but if it becomes a habit, then you are heading for credit card debts. It is known that once a credit card holder goes default, interest rates will be added to his or her credit. Aside from interest fee, there are penalties, too. The result of the delayed payment is not only the interest and penalties but also the credit card company will report it to the credit rating bureaus. The late payment penalty itself increases the amount of debt the consumer has. There is a possibility that when you have become accustomed to late payments, your creditors will ask for higher interest rates. Even the creditors whom you have clean credit history with will increase the interest rates for you. This custom is called universal default.
So if you have credit card debts, settle it today. Do not let the interest fees and penalties accumulate and make the repayment process difficult for you. You do not want to receive incessant calls from the credit card company, do you? It is difficult to pay off debts, especially with the present financial crisis, but you must. The longer you stay involved with this type of debt, the longer it will take you to get out of it.
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