Real Price of Credit Card Consolidation
Unless there is an expectation of paying off consolidated debt on a new credit card offering short-term low interest, consumers should not fall prey to such advertising gimmicks, says UAB economics professor Bradley Wilson, Ph.D. "The bottom line is, companies issuing credit cards are profit seekers, not entities concerned with the welfare of consumers. These companies know full well that the consolidated debt will not get paid down any time soon, but they have successfully taken business from their competitors."
As soon as the low-interest time period is up, the interest rates go right back up to 18 percent to 20 percent and the consumer is no better off than before. Wilson suggests consumers read the fine print very carefully, and twice, before consolidating debt on a credit card offer.
Contact Jennifer Park, Media Relations, 205-934-3888 or [email protected].
RSS