Credit cards were a big factor in encouraging people in recent years to rather overindulge and overextend themselves. As credit card bills grew, the interest, fees and charges consumers had to pay also grew. It was then that Sue realized she was up against rising fees and charges that weren’t going anywhere quick! Sue was hit with new terms and conditions that of course meant she owed the credit card companies more than ever. That’s when she heard of Freedom Debt Relief.

The Government passed the Card Act in 2009 banning some of the worst credit card fees. However, this policy meant credit card companies lost about $390 million in fees which they are trying to earn back, often in very creative ways. During her search to find a credit card that would take on balance transfers, Sue discovered that credit card companies were figuring out how to replace old fees with new ones. Freedom Debt Relief was a good option in this case as it works on not just consolidating loans or negotiating better terms and conditions, but works on a settlement where you owe a smaller amount than your original dues.

The reaction to the Government regulation of credit card terms and conditions appears to be a race between regulators writing ever-more-complex laws and credit-card companies setting up ever-more-complex fees.

High upfront fees are a top favorite. In other words, an application fee is charged prior to activation of the credit card. This has been justified by some credit card companies that it is not a credit card charge as it is charged to the consumer at the point of application, before the credit card is actually activated. Sue realized this was a query she must make upfront when shopping around.

Credit protection insurance is another charge that creeps in unbeknownst to consumers many a time. Credit protection insurance covers consumers for fees and minimum credit card payments in the case of illness or job losses. Great in theory, however, a consumer should be the one to decide if they want to take this on. As this is at times an automatic inclusion, a consumer finds that the credit card company has signed them up for this insurance. When they realize this is when the premium charge hits their account. Sue would be wise to closely watch her monthly statement and immediately query any questionable charges or debits to her account.

Inactivity charges were banned by the Card Act. However, credit card companies are getting around this by charging an annual fee that can be waived only when a certain amount of the credit card is charged. This amount can sometimes be a lot more than a consumer had planned to use the credit for in the first place. So it cajoles consumers into spending more than they need in an attempt to save the annual charge. Sue noted that these were the type of credit cards she should consider closing if she didn’t really require them.

The craziest credit card fees are the ones where the high application fees are charged automatically in the first month’s statement. At times, this amounts to half or even two thirds of the total credit card limit. So when Sue actually goes to use her new credit card the first couple of times, she immediately goes over her limit. These credit cards may also have ridiculously high interest rates close to 50 to 60 percent per annum. It pretty much gives Sue no chance as a consumer.

It’s a good idea to read all the small print with a fine toothed comb before getting into any contract. However if one already is in a position of owing more than manageable, then Freedom Debt Relief is the way to work out a payment plan where you end up owing a lower amount that you originally owed.

Author Bio: Freedom Debt Relief

Category: Finances
Keywords: Freedom Debt Relief