> Yes, the rate is fixed--if you never miss a payment. Miss one payment,
> the rate jumps. Miss two, it's up around 20%. Given the fact that
> numerous factors can cause a person to miss a payment--poor mail
> service, job loss, unexpected expenses--I would imagine it's common
> for these 10% offers to become regular credit crad debts in a few
> years. In fact, this is probably what the credit card issuers
> are betting on.
Yeah. This is what I was thinking of as I read this thread. I don't think, either, that it would take a few years -- it's not just missed payments which can prompt rate increases. It's also *late* payments and exceeding one's credit limit.
It's rather like those offers for 'free' issues of magazines, 'just write "Cancel" on the invoice and keep your free issue with our compliments'.
It seems to me that a lot of the credit industry is banking on consumer inattention.
Steve Rafferty