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Why Are Personal Credit Card Debt Rates and Fees So High?

Credit card companies charge you so much on personal credit card debt because it is unsecured as explained here. The fact that they only have your word and a “fine print” agreement that nobody reads that states you will pay back what you owe¬†allows them to charge very high interest rates and often exorbitant fees. It’s how they make so much profit!

They take on the risk of lending you money even though they know almost nothing about you and your future ability to repay what they loan you. In return for that risk they sock you with lots of added costs when you are late to pay them back.

So How Can You Reduce Personal Credit Card Debt Interest Rates and Fees?
The solution for that is called debt management which is typically offered through credit counseling agencies. They will help you set up a budget, consolidate your payments, and lower your rates/fees in order to make the monthly payment more manageable. You may read more about debt management plans here and find reputable debt management companies here.