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In focus tonight 0% APR credit cards -- back that's right.
Brace yourself for more offers in the mail -- card companies try L'Oreal with their enticing offers but are they weren't they here to -- and John Alzheimer.
President of consumer education for Smart credit dot com.
-- I remember when my mailbox was packed with these what's going on why are they back.
I'd sure remember those days when your mailbox -- -- -- wonderful offers.
I'm blowing what we're obviously today economic credit meltdown and of course they card act which terrified credit -- -- some.
So -- discarded a pretty significant chunk of their higher risk.
And moderate risk cardholders which is not necessarily something may wanted to do because they were afraid they won't going to be able to mitigate their risk like they were normally doing -- self.
Now they want -- back.
And one of the ways that they want you back because because consumers take this very personally -- I you know I can account with you for twenty years or not it dumped me it's like a personal thing went -- And and the way you get -- back.
Actress to essentially -- while the band.
I'm kind of shocking -- -- you well with these offers of 0% balance transfer 0% on -- purchases no balance transfer fee for the next year and a half.
Those are pretty fantastic deals if you look at them on the surplus -- Do you like them.
I like them if there's -- purpose behind them and I know that's little confusing let me explain.
If you have credit credit card.
Interest rates are likely going to be the highest interest rates you'll ever pay him that you have some sort of ridiculous -- -- thirteen to 15% of that is the highest and most expensive debt you'll ever -- 0% -- obviously much better than that and it you can transfer your more expensive credit card debt.
It's one of these new cards with a 0% interest rate perhaps a year and a half and you can do a good job of getting out of that debt.
Now I think that the you know -- win for the consumer.
Where I lost for the consumers that they discontinued he's both -- and get -- -- that's why suburb -- law.
-- never get okay.
-- -- ask you about CF PB Consumer Financial Protection Bureau.
There are -- after these credit card companies are doling out his credit protection plans.
Now they're going away and I think this is good news because I know a lot of Smart people who signed up for this pay ten dollars a month twenty dollars a month.
If you lose your job the credit card company promises to come in and make your credit card payments but the devil's really in the details here right.
Yeah I'm not sure what I guess like more prepaid debit cards and -- cannot protection class for credit -- I'm I'm I'm still weighing.
Which is not -- -- above people's.
Yet a CF -- came in and thumped Capital One pretty significantly sixty million dollar fine plus the got to get back a 150 million dollars.
A big gains on from from the deceptive marketing.
These types of programmes and Bank of America chase -- Amex have dropped selling those services so that should tell you something.
This is hundreds of millions of dollars of revenue that these companies are foregoing.
Why because they fear the -- Of this CF PD what.
You can you can find an example of a person who benefited from asbestos but its fastest that it is a bad -- overall the same thing with these payment protection -- you can find one -- two people who benefited from a but the vast majority of people wasted their money through -- data -- sometimes they're going to -- balance instead of like paying for this plan set aside ten -- twenty dollars a month education can't pay.
-- you have savings it's your money here realize -- this ridiculous company to do for you John thanks for helping -- and I agreed.
Appreciate your time always good to see you.
-- will be.
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