Sweet credit card deal can quickly turn sour

CHARLOTTE, NC (WBTV) - The new credit card rules enacted in February do not mean credit card companies are finished making money on your spending habits.

Certainly we've all turned to our credit cards when we felt like we had no other way to pay for something.

"I've paid bills with my credit card, I've paid for daycare.  Sometimes you've got to do what you've got to do," said card user Rachel Heartley.

Credit counselors will warn you that paying bills on credit is one of the worst things you can do.  However, it is precisely what some credit card companies are suggesting consumers do.

In one letter sent from a major credit card provider received last week, the company promises to waive a $60 annual fee if the card user spends $2,400 within one year.  The company goes so far to suggest the card holder reach that amount by paying for everyday items like groceries, and by paying certain bills, using credit.

"Consumers are not thinking about the interest complications over that whole year if they really sat down and ran the numbers.  If they're paying interest of $18 a month, multiply that by 12, you come out better paying the $60 annual fee," said Charisma Jones, credit counselor with United Family Services in Charlotte.

You can opt out of changes your credit card company would like to make to your agreement.  Just remember, closing too many accounts could have a negative impact on your credit score.

For more information about credit counseling with United Family Services, click the link at the top of this page.

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