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Banks Of America - Consumers Run As Banks of America Raise Rates

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Throughout the last century, many have witnessed the recent credit hikes that have taken consumers by surprise. What once was a fixed credit rate is now a never-ending credit rate, and fees have began to take a hold of everyone! Many banks of america are deceptively changing their terms under consumers noises, so that they will have access to even higher fees and percentages of accounts. But what can be done to circumvent these efforts?

First, one must analyze their credit contract closely. In recent time creditors have begun to change the terms of commitment, for example credit limits. One consumer never had made a missed payment, or used his card extensively, when suddenly he was slammed with over-balance fees. That’s because he was way under his previous limit, and when the bank lowered it he became overdue under the new limit.

This type of credit decreasing, even against persons with perfect credit, has begun rampant. Many industry analysts suspect it is due to the falling economy. Banks make most of their money off loans and credit cards, and by lowering the credit rates they can rake in more money in the form of consumer fees. Other analysts think it is so that banks will curb the behavior of only paying off the monthly balance, and holding some debt. However, with the new regulations and the previous assumption it may take decades to pay off a small purchased bag of chips!

Even worse, when one gets slammed with these fees from all the banks of america, they take out even more credit, or look at other banks of america for solutions. As everyone knows, paying off credit cards with other credit cards from the banks of america is never a smart idea. This just allows more interest to accrue, and puts one in a hopeless cycle of debt. With American’s carrying over 700 dollars worth of debt, this is not the time to snag another credit card. Even worse, payday loan centers promise relief from debt by offering fast and easy loans. However these “fast and easy” loans often have outrageous interest rates, some being 40% of the initial investment, and higher if one misses a payment.

If one finds themselves in this endless sinkhole or debt, options abound other than filling chapter 11 bankruptcy. If one is a homeowner they could take out a loan based on the equity of their house through banks of America. Liquidating unneeded assets or selling a home and moving into a smaller place is also a viable option. At all costs should bankruptcy be avoided, as this completely destroys a credit score. Borrowing on the equity of your home often is a viable topic, however this adds a lein to your home, and if not paid off timely could result in home foreclosure.

Strategies exist for those looking for paying off their bills from the banks of America. Many people swear by the tackle the largest bill first and make payments on it, until it is completely gone. The trouble with this method is that you are not seeing real progress until the end, when you are left with many other bills to pay. A recent method, being held be many as the best, is called the snowball method. One simply picks the bills they have to pay that have the least amount due. They gradually work and work at making payments, and before long they have paid off the bill. They then tackle the next bill, and so on until all of them except the largest bill is remaining. Now, with the extra fund available they can tackle the large bill with ease knowing that they have the extra money and confidence to be able to pay it off in no time.

Another confidence booster for paying bills is to pay bills twice a month, rather than once a month. This lets you feel better throughout the month knowing you are making payments towards a goal, and knowing you’ll have plenty of money by the end of the month. On top of that the extra payments add it, before long an extra monthly payment has been made and the bill is payed off sooner than expected!

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