Your Debt May Raise Your Credit Card Rates

"If somebody responds to one of the 5 billion applications that are being sent out by the credit card companies who say 'sign up with us and you're going to pay 6 percent a year' and every month people pay their bills on time… Then suddenly because a year ago, or three months ago, were late on a phone bill — having nothing to do with their contract with this credit card company suddenly they're interest rate goes from 6 percent to 25 percent," says Sanders. "I consider that a scam and I consider that something absolutely outrageous."

ABCNEWS' Lisa Stark contributed to this report.