Credit Card Tricks That Keep You in Debt Enslavement

There are a variety of credit card tricks that can be used against you by the credit card companies.

It's vital that you educate yourself on how these credit games are played.

This is important not only to help you keep more of the money you need for early retirement, but also to simply allow yourself to live with some sense of peace and calm.

Credit card companies are sharks and have no qualms with making your life a living hell.

You need to always pay close attention to the due date on your statements. Many times you'll see a new credit card begin with a due date near the end of the month, such as on the 25th or later. However, if you don't keep tabs on it, you may discover that a few month later, the due date has suddenly crept up a week or so.

The credit card companies bet on the fact many people simply don't pay attention to this change. If one of those people ends up being you, you're going to be very unhappy when you send your payment in under the terms of the old due date and discover that you've now been charged a late fee and possibly received an interest rate hike.

It's important to understand the ramifications of this. Especially if you signed up for this credit card because they offered you a low teaser rate. Now that you've been late, you can see a 6%-9% rate rocket up to as high as 30% sometimes!

By using one simple trick, your credit card company profits nicely from your late fee and the continuing interest you're now going to owe them each month. Additionally, your credit score will be affected negatively when your company reports you late to the credit reporting agencies.

Make sure you pay very close attention to the due dates on your statements from this point forward.

"The only man who sticks closer to you in adversity than a friend is a creditor." - Unknown

The first thing to be aware of is that even if your payment reaches your credit card company on the date it's due, it could still be late. That's right, some companies attach a time of day they must receive your payment by... for example, by noon on the due date.

If your payment is due on the 20th of the month and reaches their desks at 4pm on the 20th, you'll still be late. How do you like that?

Now, here's where it gets interesting. Many credit card companies play games with their mail. They'll let your envelope with your check inside simply sit in the mail room for a few days before they decide to open it up.

This is called "seasoning" the mail. To avoid becoming a victim of this trick, be sure to send your payments in a good 10 days or so before the actual due date.

Credit Card Trick - Raising Your Rate

Your credit card companies will use any reason they can to hike up your interest rate. In fact, they're looking for the chance to do so.

A late payment is a trigger for this. Even if you've never been late in the last 10 years. Although some companies will credit back the late charge if this is your first offense, they'll often refuse to bring down the new higher interest rate they're now charging you.

You also must be careful when you use a cash advance. Because cash advance interest rates are often higher than your "normal" rate, any payments you send in will be applied to the lower rate balance first. This means you're now getting charged interest for a long period of time on that cash advance before you have a chance to bring the balance down.

Another credit card trick with cash advances is that your entire balance can be hiked up to the new higher cash advance interest rate.

Did you know that if you're late on a different card, that your company can use that fact as an excuse to raise your rate on their card? Each company is continually checking your credit file looking for a mistake they can use to their advantage.

You must read your agreements with these sneaky companies because they can also raise your interest rate just because they decide to.

The best way to avoid these credit card tricks is to work on a plan to pay all your balances off and stop carrying balances. Then, you can use all those monthly payments toward your plan to retire early.