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Possible credit card debt increases with interest-free cards

Credit card companies and stores try various ploys to get people to sign up for credit cards. One of the common ploys is to offer a zero percent interest rate for a predetermined amount of time. Illinois residents might be interested to find out why some credit card experts claim these types of offers can be destructive.

When you are trying to decide if a credit card offer will work for you, it is important to find out if the card is offering a true no-interest rate offer or a deferred interest rate. A true no-interest rate credit card won't charge back interest on the balance. Instead, the interest begins to compound on the date the interest-free period expires.

Many of these ploys offer six months or twelve months of deferred interest-free financing on credit card debt. As long as you can pay off the entire balance of the card by the end of that period, you won't have to pay any interest. If, however, you make the payment to pay it off late, even if it is only one month late, you will be responsible for the entire interest balance due on all purchases made on the card.

If you are facing mounting credit card debt or don't understand the policies associated with a credit card you have recently gotten, contacting an experienced Illinois attorney well versed in credit card law can help you to better understand your rights and responsibilities with respect to the card. These legal professionals can also help you to determine the best course of action to help you get out of credit card debt if you are unable to keep up with your payments.

Source: The Kansas City Star, "Be careful with zero percent interest plans" Steve Rosen, Dec. 13, 2013

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