Buying things you don't need with money you don't have?
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Banks have a new trick to grab your money
May 18, 2007

Source: thisismoney (UK)
Credit card companies have found a new way to squeeze money from customers. Some have set minimum monthly repayments so low that they can actually be less than the interest charged. So the balance owed can increase - even if you do not spend anything. Lenders have been gradually reducing the minimum repayment they require each month from around 5% of the balance owed a few years ago to between 2-3% now. Less debt is paid off each month, allowing banks to grab even more of your money in interest payments as it takes longer to pay off your balance. [more]


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