Saturday, March 29, 2014

Motley Fool Credit Card Article "Is Your Credit Card Interest Rate Above 20%? This Chart Shows Why." is a load of propaganda.

Motley Fool article is way off the mark in this blog's opinion. Credit Card Debt is the BIGGEST profit center for banks. 

What Motley Fool fails to acknowledge is that as time goes on not only are consumers paying a ridiculously high interest rate on credit card debt, but a significant portion of the credit card debt is interest rate charges that are accruing more interest rate charges!

One way to show how foolish Motley Fool is regarding this credit card debt article would be to create a graph that reveals what percentage of all credit card debt is actual interest rate charges that are "nestled", or nested, into the credit card.

If a credit card customer with a 5,000 dollar credit line defaults after 15 years, but in that 15 years time paid 15,000 dollars in interest rate charges and of the 5,000 dollars still owed 3,500 is additional interest rate charges that just keep accruing, just how badly did the credit card company lose? But wait, lets factor in that credit card companies are UNINTERESTED in collecting the defaulted debt if it were to be paid back slowly with no more interest rate charges, penalties or fees added in.

I didn't realize that Motley Fool (in my opinion) was such a government propagandist by actually justifying a 20% or higher interest rate charges on a credit card, wow.

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