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8 Fascinating Insights about Credit Cards

Ramit Sethi · November 28th, 2011

I combed the internet to find the most interesting stories about credit cards for you. Here are 7 of my favorites.

1. The Tactics of Discover Card Reps
How did the telemarketers supposedly trick customers into signing up for the products? The Minnesota attorney general’s office gave us audio files of some of the calls,

2. I am a Fraud prevention agent for a major credit card company. Ask me anything.
An anonymous fraud-prevention specialist from Visa answers questions. Lots of fascinating behind-the-scenes Q&A

Quiz: What is your earning potential? Choose the answer you agree with the most
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3. Credit Bailout: Issuers Slashing Card Balances
Credit cards are now allowing people to settle balances for less than the full amount they owe. They’ve done this for years but now it’s finally getting publicity. Note 2009 pub date. Counterargument here.

4. The Real Problem with Credit Cards: The Cardholders
Lots of examples of how consumers make decision-making errors about credit cards (teaser rates, etc), even if all the information is in front of them. “Informational influence” is the least persuasive of all. Yet clueless politicians (and regular Americans) will continue calling for “more disclosure,” as if that alone will solve the problem. Wrong, wrong, wrong.

5. The outrage in your credit card’s fine print
Penalty fees make up nearly half of industry revenues. To avoid these, use the tested scripts in my book.

6. The Debt Trap
Very sad short video about a woman who got into too much credit-card debt.

7. How Much Do You Owe? Guess Again
“It would appear that Americans don’t even know how much they owe. Households underreport the magnitude of their credit card debts by at least one-third, according to a new study from the Federal Reserve Bank of New York. The difference for the average household is more than $2,000. Only 50 percent of households reported any credit card debt, while credit card companies reported that 76 percent of households owed them money.” WTF, but also not surprising.

New tool: Credit Card Payment Calculator

I’ve written about credit card benefits before, but as I was combing the internet, I read more and more about credit card debt and decided to do something about it. Check out my new credit card payment calculator to see how you can tackle your outstanding credit card balance (or any other debt).

The debt calculator follows the same rules as my book – give it a try and let me know in the comments how it helps:

Credit Card Payment Calculator from I Will Teach You To Be Rich

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8 Comments

 
  1. CARPE DIEM: Credit Card Delinquency Rate Falls to 16 « Debt Elimination

    […] 7. How Much Do You Owe? Guess Again “It would appear that Americans don’t even know how much they owe. Households underreport the magnitude of their credit card debts by at least one-third, according to a new study from the Federal Reserve Bank of New York. The difference for the average household is more than $2,000. Only 50 percent of households reported any credit card debt, while credit card companies reported that 76 percent of households owed them money.” WTF, but also not surprising.Source: iwillteachyoutoberich.com […]

  2. How To Do A Credit Card Debt Consolidation « Debt Consolidation Boston

    […] 7. How Much Do You Owe? Guess Again “It would appear that Americans don’t even know how much they owe. Households underreport the magnitude of their credit card debts by at least one-third, according to a new study from the Federal Reserve Bank of New York. The difference for the average household is more than $2,000. Only 50 percent of households reported any credit card debt, while credit card companies reported that 76 percent of households owed them money.” WTF, but also not surprising.Source: iwillteachyoutoberich.com […]

  3. “I want to hear all of your credit card perk tips and hacks.”

    How about not using any? Link: http://www.amazon.com/Total-Money-Makeover-Financial-Fitness/dp/0785263268

  4. Hey Ramit, about a year ago I bought your book, and 2 years ago I started reading the site. I’ve read through everything on it, but 6 months or so ago I stopped following. I automated my finances, blah blah blah stuff you say to do, but none of it really helped my credit card issues (well, I did pay one off) till today – I got a credit limit raise 3x of what I had before, a limit I was stuck at for the past 8 years. CRAZY!

    So yeah, though I thought your advice would yield results immediately, I just had to wait for it to come through. Thanks, though. I’m going to catch up on what I missed.

  5. Fabulous links, I especially liked the debt trap link. I like you’re blog carnivals’s it would be great to see some more from you, especially as you obviously read some interesting and different blogs

  6. Very interesting articles. I am surprised the reps are allowed to do these things

  7. Chase Freedom recently switched many members from operating on a credit access line. There seems to be a lot of confusion in the press and consumers as to what it means.

  8. Weekly Credit Links from the Web: Best Cards to Travel With | FreeCreditScore.Net

    […] it’s auto, health, home or life insurance, make sure you know the ins and outs of your coverage. 8 Fascinating Insights about Credit Cards (I Will Teach You To Be Rich) I found a lot of great tips, but nothing comprehensive. So I’ve […]