August 10, 2005 – There are a lot of people carrying large credit card balances which they will be lucky to pay off in their lifetime. Some consumers are being hit with interest rates in excess of 30% even though they have never been late on their credit card payments. The reason for this is that many credit card companies now use a system called "universal default", which allows them to raise your interest rate for reasons other than being late in the payment of your credit card bill.