Saturday, April 06, 2013

Banks These Days

They give you a credit card credit limit way more than double your monthly income.

It's so scary to think how such unsecured credit can so easily be derived these days.

Even the risk averse are put at risk with such high limits in the hope that people will be tempted to spend and swipe, coupled with all the latest credit card discounts and gimmicks.

Once they do, the banks then hope a certain percentage of users will roll their debt and pay the minimum sum, thereby accruing their debts at up to 24% per annum. Quite comparable to a loansharking, actually.

And that's how banks make a chunk of money of credit card issuance.

Be careful out there.

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