Saturday, December 30, 2006

New Wallet-Busting Tricks From Credit Card Companies for 2007

Fewer awards, additional balance transfer fees and stealth kiddie-marketing attacks. Those are just a few of the budget-busting tricks that credit-card companies have planned for consumers in 2007. That's the word from the Wall Street Journal.

"The bad news is that the companies are still finding creative ways to raise fees, in part to offset shrinking profits from interest paid on balances. For example, within tiered-rate schedules, the card companies are increasing lower-tier fees without changing the top tier, says Linda Sherry, spokeswoman for advocacy group Consumer Action.

Say a credit card charges a $15 late fee for balances up to $100; $29 for balances of $100 to $250; and $39 for balances of $250 and over. It jacks up the $15 and $29 fees, but not the $39 fee. This way, Ms. Sherry says, fewer people are likely to notice it and complain." source: Wall Street Journal

The article includes some frugal tactics for evading additional credit-card tricks.



The Frugal Duchess Boutique

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