Family On A Budget

The credit card companies are forever finding ways to make big bucks. One of the main reasons we are on a budget is because we didn’t learn how to manage our credit cards correctly. A mistake that we are going to great pains to learn from. A late payment lead to such an increase in our interest that it proved to be a domino effect. Obviously we were at fault for screwing up, but the CC industries thrives on your mistakes. Heres one way.

I recently read about the Univeral Default Clause that is cropping up on Credit Cards. Basically this clause allows the credit card to up your interest if you are late on any payment, not specifically their credit card. Imagine paying your phone bill late and suddenly your credit card goes from 2% to 30% overnight.

According to the Institute of Consumer Financial Education, currently almost 40 percent of credit card issuers apply a hidden in fine print Universal Default Clause to their customers.