Credit Card Relief

credit card relief
by KevinHutchins314

Credit Card Relief

Congress yesterday passed some credit card relief for consumers. Now this is good, but won’t go in effect until next year in February 2010. Congress had passed a previous bill set to take effect in July 2010, but the credit card companies got a little greedy.

How did they get greedy?

Well, credit card companies started to increase rates on good paying customers. It wasn’t just one bank, all did: From Citibank to JP Morgan to Capital One. I believe most did this to get ahead of the new July 2010 regulations. However, since banks got greedy and people complained about the increases Congress had to act.

Now what are some of the changes.

1. Late payments will now be considered late if they are 60 without a payment instead of the past 30 days.

This is HUGE since so many clients I have had in the past said they received higher rates when they missed a payment or two in a couple months. Most were never 60 days behind they were late by a couple days once or twice in a year.

2. How often a bank or credit card can change your rate even if your current.

Previously banks would just send a letter tucked in your bill saying “this is your new rate and terms” (if you don’t like new term “oh well’) My quote not banks.

3. Terms now fixed until credit cards expiration date. What is the Expiration Date? It is the date you give when someone asks when someone asks when does card renew.

As stated in #2 banks could change rates whenever they felt like it, even if you never missed a payment. This is another good feature of bill since it allows the consumer to know how long rate and terms will stay the same.

4.

Another new feature on your bill will show how long it will take to pay off your balance by paying only the minimum. This is very good since on average a $ 3,000 balance only the minimum takes over 30 years to pay off. I’m sure most people are not aware of this fact. The banks and credit card companies certainly do and now you will.

It will take time to see if these changes are really that beneficial to consumers. It seems like it is a step in the right direction. Remember we still owe $ 960 Billion on credit cards. This does not change that fact. We still charge too much stuff and the credit card companies will still be earning interest on the $ 960 Billion every year.

The only difference is that they may not be earning as much money as in the past. Go calculate the interest on $ 960 Billion at 10%. The number is HUGE!! Banks won’t be hurting that much with these new changes.

About Teddy Danfield. I have worked in the finance field for over 15 years. I want to help people get out of debt or at least pay less in interest charges. Visit my site http://debtstrength.com My new book “How to Beat Banks and Credit Cards At the Money Game” can help you keep more money in your pocket. Stop paying interest to banks and start earning interest.

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