Survey Shows Consumers Are Poor Credit Card Managers
For Immediate Release: October 24, 2002
ROCKVILLE, Md. — According to the Myvesta® Bill Management Survey, many people are not spending the time needed to manage their credit cards efficiently. "Two of the key elements of smart credit card usage are reviewing statements and regularly shopping for lower interest rates or new perks," said Steve Rhode, president of Myvesta - a financial health center. "They're not doing much of either - and they're paying for it."
The survey shows that one-quarter of Americans do not review their credit card statements each month and 55 percent do not negotiate or shop for better interest rates.
"By not reviewing their statements or negotiating better terms, people are paying much more than they have to," Rhode said. "Credit card companies offer hundreds of different programs for their cardholders. By taking the time to make a phone call to shop around or negotiate better rates you can save yourself a lot of money." The Myvesta Bill Management Survey found that 47 percent of Americans do not know what interest rates they are being charged.
According to Rhode, there are other problems associated with not paying attention to credit card statements or negotiating with creditors. Those issues include:
- Paying charges for items you didn't receive;
- Not being aware of billing errors or fraud;
- Interest rates being raised without your knowledge; and
- Missing out on programs with better terms.
"People tend to be focused on the minimum payment amount, instead of making sure they are getting the best deal," Rhode said. "Take the time to go over your statements, research better terms and know your interest rates or work with a money coach who can help you with your finances."
| Other findings from the Myvesta Bill Management Survey | ||||
| Men | Women | Married | Single | |
| Do Not Negotiate | 49% | 60% | 51% | 61% |
| Do Not Review Statements | 23% | 24% | 16% | 33% |
| Do Not Know Interest Rates | 45% | 49% | 35% | 52% |
For more information, visit Myvesta.org.
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MyvestaSM is dedicated to helping people create healthy financial lives. The organization provides a wide range of materials to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit Myvesta.org online.
