High Interest Rates and Late Fees Pay Their Bills

Credit card companies are relying less and less on the borrower paying back the money owed as they use other ways to make their money.

One way they have secured a profit is by increasing interest rates. last years interest rates were at 19.1%, but just two years prior in 2005 they were at 17.7 percent. This difference adds billions of dollars to the pockets of the credit card companies.

They have also taken to increasing late fees. last year fees rose to $35. In 1994 they were less then $13. It seems as though it is time for a few federal regulations.