Selena Maranjian from The Motley Fool writes about credit card rates going up in an article aptly titled, How to Owe $40,000 by Doing Nothing.
She includes tables showing just how damaging having a 40% APR on your credit can be. That’s a pretty high rate, and apparently it’s a more common penalty rate for those people who don’t keep up with payments.
Update: Well honestly, I was overwhelmed reading about credit cards with a 40% interest rate. Tonight I came across a news article about a new British credit card with rates between 50% and 70%. The article implies that the extra income the credit card company acquires from these fees go to the upper executives in the form of salary and pension.
Updated February 6, 2012 and originally published February 11, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.