Executive Summary By Trish Gannon

Have you opened your credit card statement lately? Many have, only to be shocked to find the rates on their credit cards have climbed astronomically—in some cases, more than 100 percent.

Credit card companies often increase rates even when you pay your bill on time; the universal default provision, for example, allows the company to change your terms at any time based on your use of other lines of credit. “From 2003 to 2007, seven of the largest issuers of credit cards packaged an increasing amount of card debt into securities and sold them to investors, just as banks did with mortgages, a USA TODAY review of banking records found,” they reported.

Rate increases are not the only area where consumers are being surprised by their credit card bills. Companies are also lowering available credit, in some cases, to the amount currently owed on the card. Doing this, in turn, can increase the rates on your other cards as you are a higher risk borrower when you’ve “maxed out” a credit card. And again, you don’t have to have done anything “wrong” for your credit card company to lower your available credit.

Credit Card Help

If you have a good payment history with your credit card company but have recently seen an interest rate hike or a drop in your credit limit, give the company a call.

Another option is to pay off that card as quickly as possible (and hope that other cards don’t also raise your rates).

You might also consider obtaining a card from a credit union as opposed to a bank. In many cases, credit unions not only offer lower percentage rates on their cards, but lower associated fees as well—such as those for being over the limit, late with your payment or for cash advances.

If your rates have gone up and there’s no way to change them, and credit card debt is threatening your financial well-being, you might want to consult with a credit counselor to help you get out of debt. Legitimate credit counseling firms are affiliated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies; Unrealistic promises. Some companies falsely promise that you can settle your debts for little or no money, without hurting your credit rating. Legitimate credit counseling services help you pay back what you owe, albeit at lower interest rates, and acknowledge this is likely to effect your credit rating and ability to obtain new credit.

Check out another related article here: Bad Credit Credit Cards