| Imagine being stuck with $5 fees for ATM | | | | This "High Yield CD" was being offered at 2.60%. |
| transactions. Paying big bucks for insurance you | | | | At that rate it would take you 27.69 years to |
| don't need on a rental car or forking over $20 | | | | double your investment. That same bank invests |
| -$25 a day for supposedly "free" wireless internet. | | | | your $5,000 at rates greater than 12%, which will |
| When you use banks, cell phones, and credit cards | | | | double in 6 years. You gave the bank $5,000 |
| or book hotels and airline tickets, you face the | | | | dollars and in 30 years they gave you back a little |
| prospect of getting ripped off. | | | | over $10,000, pretty good you say! The bank |
| Here are just a few examples of what you are | | | | received $25,000 for your money in the same |
| up against: | | | | time period and gave you back a whopping |
| - You didn't fill up the rental car with gas? The gas | | | | $10,000. No wonder they like to give you a new |
| costs $7-$10 a gallon here. | | | | toaster for opening the CD! |
| - Your bank balance fell below the minimum by | | | | If you are borrowing that $5,000 from the bank |
| $1.00 for one day? That'll be $25.00 | | | | in the form of a credit card purchase and you |
| - You miss one payment on that 18-month | | | | pay the bank 4.0% of the unpaid balance with a |
| same-as-cash loan? Gotcha! That'll cost you | | | | typical low card rate of 13.0%, It will take you 131 |
| $512.00 extra. | | | | months to be rid of your debt. In that time, you |
| - You're one day late on that electric bill, or you | | | | will pay $1,807.37 in interest. Take a look at what |
| accidentally send it to the Gas Company. ALL | | | | happens if your rate is changed to the Universal |
| your credit cards now have a 29.99% interest | | | | Default rate of 29%; It will take you 227 months |
| rate. | | | | to be rid of your debt. In that time, you will pay |
| These figures are bad enough by themselves, but | | | | $7,388.45 in interest. |
| figure the cost of that $3,000 credit card balance | | | | This doesn't even take into consideration the |
| (The average American Credit card debt is | | | | myriad of fees which the Vulture Capitalists are |
| $8,000). If you only pay the minimum of 2.0%, | | | | charging you at the current average rate of |
| consider this: | | | | $39.00 each. If your payment is posted 1 minute |
| The minimum payment on credit card debt is | | | | after the closing time (typically 2:00 pm), you are |
| calculated as a percentage of your current | | | | assessed $39.00. If your latest charge goes over |
| balance. The minimum payment drops as your | | | | your credit limit by any amount (even $0.01), you |
| balance is paid, but thanks to the magic of | | | | are assessed $39.00. If you fail to sign the check, |
| compounding, you'll end up paying for a long, long | | | | you are assessed $39.00, and so on... |
| time. In this case, your minimum payment is not | | | | Most people are aware that if they are late |
| enough to reduce your debt. Lets say you pay | | | | paying the credit card company, the credit card |
| 4.0%; it will take you 205 months to be rid of | | | | company can raise your interest rate and |
| your debt. In that time, you will pay $4,730.58 in | | | | decrease your credit limit. Few are aware that if |
| interest. | | | | they are late paying anyone including rival credit |
| Ever hear of the "Rule of 72"? It works like this; | | | | card companies, the credit card company can |
| if you take the interest rate you are being paid | | | | raise your rate to whatever the current prime |
| by the bank, and divide that number into 72. The | | | | rate is plus 20%. Right now, that rate is around |
| resulting number is how long it will take to double | | | | 29%+. |
| your money. This can work for you as well as | | | | In 2004, PBS produced a Frontline series called: |
| against you as we will soon see. | | | | "The Secret History of Credit Cards". It was a |
| A large, well known bank recently advertised its | | | | powerful piece which you should go to their site |
| "High Yield CD" as follows: | | | | and watch. We are all vulnerable to the tactics of |
| Open our High Yield CD and maximize your | | | | the Vulture Capitalists unless we educate |
| savings without committing your money for a | | | | ourselves to how the Credit System works and |
| long period. This online-only opportunity features: | | | | what we can do about it. It is your responsibility |
| - 5,000 minimum to open | | | | and no one else's to educate yourself about this |
| - Special on-line CD rate | | | | topic. You will never get out of debt unless you |
| - Short 4-month term | | | | do. |
| - FDIC insurance | | | | |