Credit card debt is a problem for many people, but one man’s negative experience with it has inspired him to help others.
Peter Repak, president and founder of Clear Financial – a debt settlement company – emigrated from Hungary with his wife. In order to establish credit when he arrived in America, as is required in modern times, Repak got a credit card. He paid his bills on time, never missing a payment, but found himself in hot water when his wife became ill. She required two very expensive surgeries, and was unable to get health insurance due to a pre-existing condition. Under such financial strain, Repak called his credit card company, to ask if it would be alright to miss a single payment. The company said yes, assuring him there would be no penalties. However, Repak soon discovered the company had raised his interest rate from 6% to 29%. He was financially ruined.
Credit card debt is a problematic issue for many Americans. It has been estimated that the average American family has around $8,000 in credit card debt. While people do have control over their spending decisions, many people who use credit cards have found themselves entangled in a labyrinth of hidden traps and fees, sometimes seemingly designed to milk users of as much profit as possible. Unfortunately, many people end up making payments for most of their life without getting out of debt, so this can be a hard trap to escape.