Business & Lifestyle

Modern life demands the fulfillment of the needs of fast-paced and easy, so just live with the more common credit or debt. The easier you can owe, the more modern life. For example in 2002 Look at the American people even have a total debt amounting to nearly 1 trillion U.S. dollar or USD 979 to the company’s creditor (bank, CC company and other lending companies). Those who live in America together with Indonesia, they are many who have nice houses, nice cars, furniture and home appliances are good but the day-to-day living in poverty, because their income every month goes to pay the various installments of the seemingly never paid off.

Beyond the matter of credit or loans with various banks, this paper is about what is actually happening in the CC industry as reported by Frontline (like 60 Minutes from CBSNews), an investigation of the PBS television show in America, famous since 1983. Title keinginantahu fishing report, namely the Secret History of the Credit Card, and the subtitle: FRONTLINE and New York Times join force to investigate the Few American industries fully understand. Frontline call this industry as an industry that is always profitable but the customer industries most disappointed, complaining, feeling uncomfortable and hurt.

Many problems are not understood by holders everywhere, because it made for difficult to understand by publishing CC companies. Few holders who are willing and able to read the agreement issued by the CC company, as well as provisions that are usually printed in small letters and the gray on the back of the monthly bills. In the agreement there is always a clause that the agreement can be changed at any time with notice 15 days earlier. Change is usually concerned about the most adverse holders, namely the interest and penalties (late fees, over-limit fees, or sometimes referred to as administrative costs). Interest and penalties can be whatever, it’s up to CC company. Although you always pay your household bills on time, companies or households could always raise interest mainly because of various things, such as after the promotional period ends, 1 year after you apply for example (sometimes only 3 months only), late pay in KK from other companies, too late to pay the phone bill, electricity, car loans, home or because the CC company considers you too much credit there and here. This practice is called universal default clause that became a standard clause in the agreement between the holder and the CC company.

Los Angeles Times, in 1999 and then proclaim the CC company in America, that Providian and First USA have been caught late charge to the holders of its actual payments made on time (on time). The holders will then bring an action against these companies and millions of dollars have been returned to the holders of these households. According to CC these two companies, the fault lies in the processing systems. Yet this is not a mistake but they have done intentionally which may also be done in Indonesia, but not caught.

Many people, unwittingly, makes CC as debt bondage for life, to those who pay their household bills only the minimum payment amount listed or slightly larger than the minimum payment for many reasons, mainly because there are other debts such as home loans, vehicles, equipment household or other credit. The minimum payment is usually set by the CC company is only 2% of the total bill which is the debt trap lifetime. Whatever your bills, if you pay only the minimum payment amount, then you will only be able to pay your household bills in 30 years, as also mentioned by Frontline or Oprah.com in the edition entitled Debt Diet. That is, if the interest charged on you for no more than 18% a year. Unfortunately CC companies everywhere are often set to 48% interest a year. Crazy is not it? This means your payment period if you pay only the minimum payment could be further than 30 years! Unless you pay more than the minimum payment, for example by 10% of the total bill each month.

The better you finish your household bills, it means you are getting a little CC company a profit. Therefore there are many games that are run by companies for CC to ensnare you persist in their game forever. This game is a legal alias is not unlawful, but it can make you a debtor for the rest of life. You can avoid going into this game, if you know the tricks as suggested on many Internet sites about the game CC. Usually these tips on the Internet entitled Winning the Credit Card Game.

1. Read very carefully the whole form, agreement or anything that is sent to you by the CC company.

Read what was sent to you along with the bill because the CC company reserves the right to amend any agreement with an announcement just 15 days earlier. Unfortunately the notification is often made so you do not read it, for example with small letters and are colored gray. Also this is where you trap the CC company for a variety of things you do not need, such as families buy insurance, life insurance or other insurance

2. Do not be late paying bills.

You will be surprised with the fine which they usually refer to as a subtle, such as administrative costs or late fees. Big bills will swell and the minimum payment would also swell. Because of the fines, the CC company will make it a reason to raise rates by more than 40%, whereas when you first offered CC only for example 16%.

3. Do not be Revolver.

Namely holders who maintain CC bill by paying bills only for the minimum payment shown on the bill. Be a Freeloader, that is, those who always pay the entire bill each month in the grace-period (the period between the use of families and due bills). Freeloader will not be stuck in a situation to pay interest. The point is do not make the families as a tool for debt, but as a means of payment without cash. Immediately pay for what you already paid previously with your families so that you do not have to pay interest and fell in the hole in debt. Therefore, you are also highly recommended to not have more than one household to avoid the risk of interest, penalties and fines over limit and annual fee more than once.

4. Do not hesitate to attack the CC company in any way legal.

Does your CC company to suck your blood? Make a complaint and even attack them through various media, print, TV, radio, and Internet. Competition among companies to make their families sometimes must be weakened by the demands of an aggressive customer. Fines may be asked to be removed or reduced rates if you ask aloud, for example on the grounds that anda.sudah become a good customer for the past 1 year or even just 6 months.

5. Make a comparison between the CC company.

Do not hold on to the outer-minded country. Although you also frequently travel abroad, do not make your reason to be holders of foreign companies, high-interest country. Since many ways to exit the country without the money in cash-in addition to the CC, for example, travel-check and others. Or if you feel more comfortable when abroad with families overseas, you can apply and obtain foreign CC in just 2 days later than if you deposit the money amount that you think will be spent abroad. After returning to Indonesia or if you do not need it anymore CC, CC was immediately closed again.

6. Ask the CC company to give rewards on a regular basis (6 months) to you in the form of notes or recommendations that you are a good holders.

Rarely do companies households without kindly requested to make a record of good payment activity (never skip). Maybe it’s no use when you plan to apply for the loan at a bank.

7. The most important of all is not consumed with the sounds of CC company advertising, such as this do not leave home without it.

Oprah.com in an edition of the Debt Diet encourage you to leave your families at home, because you should bring families only after you plan to shop or conduct transactions. You just have to carry cash amounting to 3 times the money that usually you need every day. Moreover, almost everyone now has a savings in the bank with his ATM card that just means you have the cash on hand (there are ATMs everywhere). If you want to owe, use the credit facilities available at many banks. Although the process is long (maximum 14 working days), do not ever use CC as the road to debt. CC was originally a means of payment without the cash, but the CC company has now become a tool to bend them into debt which unfortunately can ensnare people for a lifetime.

Do not be too consumed with the sound of their advertising other grandiose, like a better life, practical, comfortable and luxury with a variety of goods. Indeed, living in the era of time into this very narrow, then the efficiency is often the first consideration when you buy something, the vehicle for example. A sum of money (an average of 4 million rupiah) per month which is usually deposited to the credit company vehicles could be used for more productive purposes or for recreation every month you think if I buy a new vehicle, then you are freed from the complex issues of vehicle maintenance or risk damage on the road at key moments. And with used cars that you really reconditioning in a workshop that you trust, all the complexity that can be solved easily and at a price below the price in advance for purchase of vehicles on credit.