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| What the Card Companies Don't Want You to Know ! |
Credit Cards Know-How
Just Imagine for a moment that after some real hard
efforts, you've built up a bit of a balance on your
credit card which is a fusion of balance transfer,
purchases, and cash withdrawals from a previous
credit card. And You are consistently paying off as
much as you can afford every month - but ultimately
for no good as the interest still keeps piling on. Another
very often witnessed fact is that, we always know
that each and every part of our Credit Card balance
has a different interest rate for it, but we're
still not really sure to any good extent about how
the balance is actually made up. But on the other
hand our credit card company, know exactly how our
balance is divided up.
And
that's because of the fact, that they are carefully
making as much money as possible out of your total
balance, through their own Wiles-n-Giles (trick)
they never really like to talk about, and that's
'negative payment hierarchy'.
What's - Negative Payment Hierarchy ?
Negative payment hierarchy; It is nothing but a real
nasty trick used by almost all of the UK credit card
companies. As you might probably know, that different
credit card debts attract different interest rates. And
the balance transfers often use to have lowest rates,
whereas Cash withdrawals usually have the highest rates.
And as it can often be seen that to be able clear off
the balance as fast as possible, one generally hopes
that the debt with the highest interest rate gets paid
off first - but that's not the case, instead, what
rather happens is; the debt with the lowest interest
rate is paid off first - and you're again left with an
unable state, to clear the most expensive parts of your
balance without paying off everything in one go! Hence,
if your cash withdrawals are following a relatively high
interest rate, they won't generally get paid off until
you have completely cleared your purchase balance and
your balance transfer - leaving you with a much larger
interest bill than you would expect.
What Can You Do About It?
Now If you find yourself fabricated with a large outstanding balance on your
credit card and realize that you are paying much more
interest than you actually need to, just because of the negative payment
hierarchy, there is still a solution for you. So contact our Advisors now and find out what's an optimum solution for you. |
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