How the New Credit Card Rules Can Help with Debt

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Credit card reform has been in the works for some time. But credit card regulations begin to go into effect on Thursday so it’s important to keep an eye on your statements. Here’s how the new regulations help with paying down debt.

Protecting Consumers

The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 is aimed at providing greater protections to consumers. Beginning Thursday, credit card companies must notify you 45 days before any significant changes in the terms of your account, such as an increase in the interest rate. Right now, credit card companies only have to notify you 15 days before increasing your interest rate. You also have the option of declining a rate increase or searching for a card with better terms during the 45 day period.

Payments on Credit Card Debt

You also must have at least 21 days to make payments on your credit card debt, as opposed to 14 days, which is the current amount of time for notification to be given. Although the change gives you more time to mail payments,  it may make sense to use online or telephone bill paying services if you really want to make sure the payment arrives on time. Making payments on credit card debt on time helps you avoid getting hit with late fees, which really add up over time.

Read All Credit Card Mailings

Of course one of the main ways to stay current with what’s happening with your account is to read all credit card statements and mailings from your card issuer. Not paying attention to this information leaves you vulnerable to changes that can cause your credit card debt to increase to unmanageable levels.

About the Author

Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.

Post written by Francine Huff

3 Responses to “How the New Credit Card Rules Can Help with Debt”

1. Jerry Nordstrom Says:
   August 19th, 2009 at 11:26 am

   It is good to see attention being focused on this industry and some laws going into effect But let us not be hoodwinked

   The politicians did not enact this law immediately on purpose they gave the banks the opportunity to increase fees and interest rates dramatically before Feb 22

   Since many of these banks are now either bailed out by, run by and owned by the US Government, it makes sense they allowed them the time to ramp up fees and juice up their profits They won’t increase taxes yet but this is a way for them to generate revenue without using the Tax word

   Here is what has not changed
   Usury laws will still allow businesses to apply the interest rate limits from the state they do business in, to all consumers regardless of the state they live in Citibank will still operate out of North Dakota and charge ungodly interest rates and fees

   Credit card companies are moving to a new ARM credit card You got it, no more fixed rate There had been ARM cards before, but now it will be commonplace as interest rates are expected to rise steadily along with inflation

   Credit Card Companies are now charging consumers with cards who do NOT carry a balance Yes, so even if you pay in full each month you could incur a 20 fee for having no activity

   Credit card companies are going back to the membership fee model Remember the days you had to pay a 50 yearly fee They are back

   Credit card companies are eliminating or reducing “perks” In short take any perk and cut it in half If you used to earn an airline mile per dollar charged, now it’s a mile for 2 Many have increased the of miles needed for a free ticket as well Discover has reduced its “cash back” percentages dramatically

   Its time for Americans to reject the concept of using high interest rate instruments like credit cards, pay day loans, cash advances, car loans and more Now is the time to get out of debt, eliminate your credit cards, and instead of paying a credit card bill, start investing in yourself

   Americans should be a nation of investors not debtors Just my opinion

2. Tom Says:
   August 19th, 2009 at 12:47 pm

   Great article This new credit card act is really going to make a difference and affect people positively, as long as people know it exists The more we can do to spread the word, the better Check out http:wwwthedebtsettlementprogramcom for additional information

3. cooperamy Says:
   August 27th, 2009 at 12:22 am

   These new credit card will surely decrease the difference between the middle and upper class

   Amycooper

   a href”http:wwwdebtserviceukcom “Debt management plan a

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