Don’t be a soft credit card target: latest deals

Always remember when you’re dealing with any financial institution that you are a 'sales target'. Although banks may use flattering terms like 'valued customer', they really mean you are simply a potential cash cow.

When creidt card providers increase your credit limit without asking you, offer you a so-called 'prestige' credit card, or send you unsolicited credit card cheques what they are simply trying to do is to persuade you to spend more and that means borrow more from them, so that you will pay as much interest as possible.

Equally critical as a source of income for credit card issuers is Credit Card Repayment Protection (CCRP), which they try and get you to buy every time you take out a new card. You should remember that this is entirely optional as an insurance policy that will make your monthly repayments if for reasons of accident, sickness or unemployment you are unable to work. It also pays off your outstanding balance if you die.

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