Does Your Statement Look Like This?
It’s important to read your credit card statements thoroughly. You may find some surprising information when you look closely!
How often do you read through your credit card statements? Probably not often. It’s easy to overlook and it can be stressful! Paperless bills and online banking have made it easier than ever to take a passive role in paying your bills on time. Many people choose to set up automatic bill payments through their bank. This is a great idea, if you are certain that you will have the funds available to cover your bills when they are automatically withdrawn. However, if you do have automatic payments set up, that means that you probably aren’t looking very closely at you statements each month. You could miss some very important information. You may end up paying the bank a lot more than you should.
Your credit card statement should provide you with an estimate of how long it will take you to pay off your debt based on the minimum payment. It is very important to read this! You might think that you are on the right track to pay off your debt, only to find out that it could take 230 years!
This is an excerpt from actual credit card statement received by one of our clients. As you can see, they had no chance of paying this bill off by making the minimum payments. Recent legislation states that credit card companies are required to have this information on their statements. Credit card companies have an interest in keeping people paying interest every month. That is how they make their money. When you are already suffering financially, it can be impossible to make payments beyond the minimum required. This means that your payment is only going towards the interest, and the principle is untouched. If this is the case, you will be in debt for much longer than you would expect.
If you find something like this on your credit card statement, it is a good idea to make an appointment with a Licensed Insolvency Trustee. A Trustee will provide you with information on what your options are to deal with this kind of debt.
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