Credit Card Default

If You Miss One Payment, You’ll Pay For It - BIG TIME

Credit Cards are not all bad. I know that you’ve been in a needy situation that your good ‘ol Credit Card has bailed you out of. I know I have. Maybe you’ve been at the mall and a ’Cutie’ asks you “would you like to apply for this really awesome card“? For the heck of it you reply, “what the heck, I might get approved“. Then you get approved and you’re like, “what the heck?“

Congratulations, you’ve got the card. The Cutie his happy and approving of you on a personal level. Feel like you are in the Credit Card Elite. You feel really good about yourself. You are credit worthy. You’ve got instant Cash on a card.

You’re only going to pay a small amount of money to use the card. At least that is what the ‘Cutie’ told you. You think it was something like “0% interest until September or October 2008″?. Anyway - cool, you’ve got credit. About a week later, the card comes. You’ve already spent some of the balance in your mind.

Along with the card came an upscale brochure telling you about all of the benefits of using the card. The brochure is glossy and has a nice shine. You read the front and back of the brochure. Next you see your Credit Card Agreement and it’s a bunch of “blah blah blah”. Terms and conditions - ”blah blah blah”. You know that if you pay your credit card bill on time you won’t have any problem.

Then the unexpected happens. You use your credit card to pay for this unexpected situation. Your minimum payment goes up but it’s not too much to handle. You continue to pay on time - every month. Then something unexpected happens again. This time, you cannot make your credit card payment on time, but it you can still make it by the end of the month. By then it may be too late.

You missed your Credit Card Payment by only one week. Now your 0% interest rate has skyrocketed to the “Default Rate” of 24.24%. If you can’t make all of your Credit Card payments on time, for at least six months, your debt will continue to grow at the Default Interest Rate. You say to yourself, “what the heck, I’ve been making my payments on time for months but my bill is still getting bigger“. You are in what I call the ‘Default Dungeon’.

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