Interest Hikes on Credit Card Debt Causes Revolt Among Customers
Credit card debt is a problem that many people around the globe are facing, none more so than in the US, where a growing disregard for the beloved piece of plastic is being shown in the rebellious antics of many customers.
One such customer is Californian Ann Minch, a loyal customer of the Bank of America for 14 years. She was the proud owner of an exemplary record, never once having exceeded her limit or missing a payment that is until the Bank of America decided to increase her interest rate to 30%!
Understandably, she was upset. Unleashing a torrent of abuse on YouTube and the Huffington Post, branding the banking giant ‘evil’, and exclaiming that they are ‘raping and pillaging the middle-classes whose sweat and toil had built America’.
Minch is refusing to make any further payments on her credit card until her previous interest rate is restored and in protest has withdrawn all her money from her savings account, and who can blame her?
Unfortunately, Minch’s story isn’t the only case of such a customer revolt and in the coming months we can surely expect to see many more similar stories as the little man uses the mass media to take on the banking monsters.
It can be expected that card providers will continue to heap the misery on their more respected customers as they look to counter the double header of ‘credit crunch‘ and the new credit card legislation by offloading their higher risk customers.
The ramifications of this move have meant that the card companies who, by getting rid of this section of their customer base, have lost a substantial amount of revenue which was predominantly accrued through interest payments and penalties. Their only course of action was to pass on those losses onto the customers who remain, like Ann Minch.
The situation is unlikely to change for quite some time and an even greater negative impact is expected when the second phase of credit card legislation is implemented in February.
Clearing credit card debt is a path that many people are looking to go down and generally they are using consolidation loans to do so which is a wise choice. There are several ways to obtain funds for consolidation purposes but an interesting idea is to refinance your home using the government ‘home refinancing plan’ releasing enough equity to pay off your credit card debt and lowering the interest on your home repayments to as little as 2%.
You will need an unblemished credit history of 12 months but it is certainly feasible that you could clear your credit card debt completely and still be paying less for your home loan than before the refinancing!
Whatever way you decide to approach the problem of credit card debt, the word on the street is to get rid of your credit card debt because this problem is going to continue growing and the sooner the better!
For more information on how to get rid of your credit card debt and about a little known method of debt elimination so effective at eliminating debt that the financial institutions would rather you knew nothing about, visit: http://www.creditcardconsolidationloanssite.com.
