Credit Cards: What’s In Your Mailbox?

May 13, 2010 - PRLog -- After a tough 2009 big banks are blowing up the proverbial bubble on credit cards again as massive mailings are back in boxes across America. Don’t get too excited, the under 20% APRs are few and far as banks are looking to slowly rebuild capital by opening new accounts at high rates under tougher terms.

With failed collection efforts in the past 2 years most creditors have written off – or charged off- delinquent debts, sold them to outside agencies for collection efforts and are starting to fertilize a new crop of consumers, creating a new credit crunch to come. Check your mailbox for your special invitation to help produce more debt on the greatest nation of all time. Act Now!

Many offers will target consumers with a positive credit history. Please take into consideration the verbiage the big banks use. TARGET… Subprime cards, for those with poor payment histories, or as the big banks refer to as deadbeat debtors, accounted for around 10 percent of offers in process. This nominal 10% targets about 80% of Americans as the average household has had at least one delinquent credit card payment in the last two years, some sources say.

So the story goes those who need a decent rate will not qualify and the ones who can have little or no need to establish new credit. And round and round we go the credit crisis circle.

February 2010 legislation placed strict rules on interest rates and monthly fees. Credit Card companies have since adjusted some of their policies to comply with the new legislations. Some policies though, have been modified for profit over the people. Like First Premier for example- After the Feb 2010 regulations were put in place First Premier Bank Card jumped a loop hole and began issuing new lines of credit with an annual APR of 79.9% to Americans labeled deadbeat debtors behind closed doors. Their justification? Simple. If you have bad credit and want good credit you’re going to pay out the arse to get it.

The only thing big banks aren’t sure on is the current demand and desire for average Joe to consume new credit. Most of Middle America has smartened up and realized there’s no longevity in leasing lines of credit but more peace of mind in money management. That’s mainly thanks to nonprofit organizations like Freedom Debt Management who provide free financial education, credit report reviews, budget counseling sessions and free consolidation quotes to any consumer who shows an interest in becoming debt free or learning more about how to better manage their finances.

Consolidation programs have filled a gap between consumers and creditors dramatically in the last few years, creating payback plans that are affordable for the consumer and still allow the bank to charge interest, just a more reasonable, non Mafioso rate. Credit card debt has since decreased more than 10% in the past two years thanks to debt consolidation programs. Nonprofit counseling services can help eliminate debt and improve credit over time with one low monthly payment and a reduction in interest to lower fixed rates. Speak to a certified credit counselor today at 1-800-905-1563 or visit our website freedomdm.org and complete the contact request form for a free financial analysis to see what options best suit your financial situation and long term credit goals. You can be debt free and improve credit, Freedom Debt Management can help. Can’t pick up the phone? Chat with a counselor on our website via our live chat feature.

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Certified credit counselors work with potential clients to assess their current financial situation and determine what their best option may be.