Credit Cards and APR Fees

To avoid falling into the "debt trap", it is vital that you understand the APR part of the credit card package and this is worked out using several tables. It is now the "norm" for credit card companies who offer the ability to make payments via the telephone to charge a fee for the service, usually in the vicinity of $1.50 to $3.50. Considering this, it may be wise to avoid using the phone to pay your bills!

There are even some companies that have a fee for statement reviews, answering queries and so on. This means that the humble telephone is making more than you do!

It is essential that you read the Terms and Conditions very carefully if you wish to avoid these annoying charges. Your own phone bill is enough to pay - you don't want to pay another one!

Some credit card companies offer "free online" account access, but you should be careful with these as well. Sometimes, going online will alter the "free" into "fee".

Check the "Annual Fees" aspect as well - there may be hidden catches to these also, especially with subsequent bills.

Sometimes, cash advances are included when your application for a credit card is accepted, which can be beneficial sometimes, but only if the APR rates are not too high. Other providers offer a $3 charge on cash advances, but you must be sure to check the Terms and Conditions first.

A card provider will sometimes allow that a card can be used to pay another fee. This is known as balance transferring. A "check" is mailed to the client, used to pay any amounts owing and a fee is charged. You should be aware of the fee to avoid incurring more debt.

If your payments are made after the due date, a "late fee" is often charged, so this means that along with the payment, you will also have a late fee and the APR to pay. if this happens, you might just as well throw the money away. It is incredibly frustrating to watch your hard earned money go to waste just paying extra fees, rather than seeing the balance of your debt reduce!

All credit cards have an upper limit on how much you can spend. Some can offer up to $30,000, but many will set the limit much lower. You will have to pay yet another "fine" in the form of high APR if you exceed the limit.

As cruel as it may seem, card providers have been known to charge even more fees when people ask for a higher credit limit on their card. So, in addition to making profit from existing fees, they increase their earnings through this sneaky fee.

If you present a check and it is returned because there is not enough money in the account to cover it, this will incur an overdraft fee. Logic would suggest that providers would welcome new custom, but in reality they are only interested in the profits they can make through charging fees on the establishment of a new account.

If you are considering obtaining a credit card from a major provider, do your research and compare them according to what they can offer you, any costs, the APR, the fee structure, complete rewards program and any other relevant details. Don't risk being taken for a fool! These convenient little cards have placed many people all over the world in grave financial difficulties, even bankruptcy.


It is becoming increasingly more difficult to rid yourself of existing credit card debt due to changes in the law. Bankruptcy was formally relatively easy to obtain, but greed and money grabbing is pushing people further and further towards the edge of the debt precipice.

As a final thought, if you are able to make do without a credit card, that will be an advantage. If not, be absolutely certain of your rights and obligations before you sign on the dotted line and be sure that you are in control of your spending, not the spending in control of you!