The presence of credit cards has undoubtedly changed the way millions of Americans live, according to financial experts. The advent of the credit age allowed more consumers to enjoy purchasing almost anything without having to pay for their full price at once. This paved the way for the consumer market to expand rapidly, resulting in the growth of the capitalist economy of the U.S. However, some experts are questioning the impact of credit cards on American society and the way many cardholders treat their finances.
While credit cards offer great advantages such as convenience, they have also great disadvantages, explain some analysts. Poorly managed credit cards can mean thousands of dollars in debts and years of financial misery. Uncontrolled spending can result in painful money issues and increasing debts. As a result, many Americans are choosing to cancel or close down their credit cards to avoid incurring more problems. This, however, presents a unique problem. Card companies often need to be convinced why they should allow their clients to close down their cards. Having the proper and convincing excuse can woo card issuers into offering better terms or at the least, allow cardholders to give up their cards.
Experts say that by providing convincing reasons for closing down a credit card account, cardholders can bluff their way into getting better rates and terms for their cards. While consumers can easily cancel their cards as long as they do not owe their card companies any outstanding balances, many card companies prefer to hear what their clients have to say. Cardholders can also make use of this opportunity to get better terms on their cards.
One of the primary reasons for cancelling a card is the presence of too many credit cards. Having one-too-many cards to manage can be a hassle and a heavy financial burden. Juggling the debts on multiple cards can pose a difficulty, especially with the unstable economy and employment uncertainty. Sometimes, losing some cards can often be the best way to avoid more problems.
This leads to another plausible excuse for closing down a card ¨C the inability to pay balances with higher interest rates. Because card companies only require minimum payments each month, the accrued interest can drive debts higher. This can be one factor why many cardholders decide to lose their credit cards.
Some consumers even cite the high Annual Percentage Rates (APR) of their credit cards. This particular excuse can gain credibility especially with many card companies actually raising their APRs to meet target revenues.