The British Office of Fair Trading (OFT) ruled that major credit card provider Barclaycard, along with several of its competitors, must cut their penalty fees. While the existing sky-high fees may have been deemed unfair, credit card companies have resorted to perfectly legal means of separating cardholders from their money. Barclaycard recently sent letters to some 10% of customers, informing them that their APR and cash advance charges would be rising by several percentage points. Exorbitant fees are a money-maker for the lending institution, but a real obstacle for consumers, who may find themselves in far over their heads with the balances on their plastic.
The only way to prevent and combat the detrimental impact of these increases is for consumers to prioritize reduction of their credit card debt. While high credit card debt may seem like a hopeless situation, experts insist that are situations can be helped, regardless of severity. The key is to take charge of the situation, recognize that the debt is a pressing issue, and consult a professional on how to reduce the burden of credit card debt in your life. ■
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